Make up the numbers

We are suspicious of those CEOs who regularly claim they do know the future – and we become downright incredulous if they consistently reach their declared targets. Managers that always promise to "make the numbers" will at some point be tempted to make up the numbers.

- Warren Buffett

Delayed recognition

The speed at which a business success is recognized is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.

- Warren Buffett

Money made by betting on the unexpected

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.

- George Soros

Human nature

Even when the underlying motive of purchase is mere speculative greed, human nature desires to conceal this unlovely impulse behind a screen of apparent logic and good sense.

- Benjamin Graham

People to hire

In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you. You think about it; it's true. If you hire somebody without the first, you really want them to be dumb and lazy.

- Warren Buffett

Own what you are comfortable with

If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes.

- Warren Buffett

Stocks with high PE

If you remember nothing else about p/e ratios, remember to avoid stocks with excessively high ones. A company with a high p/e must have incredible earnings growth to justify its high price.

- Peter Lynch