It’s the end of an era.
The turn of the year marks the day Warren Buffett officially hands over the reins of CEO of Berkshire Hathaway (NYSE: BRK.A) to his successor, Greg Abel.
The Oracle of Omaha had led the company for 60 years, delivering a market value per share growth of 19.9% per year versus the S&P 500’s annual total return of 10.4% per year.
This difference may not look significant at first glance.
But stretch it over six decades and Buffett’s track record blows the index’s returns out of the water.
To put it into context, a single dollar invested in Berkshire Hathaway would have grown to well over US$5.6 million. In contrast, the same dollar invested in the S&P 500 would have turned into around US$40,000.
Buffett may be leaving the stage, but his wisdom lives on.
As the curtains come down, here are 10 of the greatest quotes from Buffett:
1. In predicting the future, uncertainty is almost always a certainty (from Buffett’s 1994 letter to shareholders)
“We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen.
Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.”
The year has just begun.
In a surprise move, the Trump administration has launched an operation and captured Venezuelan President Nicolas Maduro.
This raid was not on the bingo card for many investors but tells you how unpredictable events can be.
2. On predicting where the stock market will end up next month or next year (written in October 2008, during the depths of the Global Financial Crisis)
“Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now.”
Forecasts are popular at the start of the year.
However, many estimates often fall short, either by being too pessimistic or optimistic.
Here’s the simple truth: if an investor of Buffett’s stature readily admits that he doesn’t know, then it’s best that you shouldn’t attempt either.
3. Instead of forecasting where the economy is headed, spend more time studying companies.
“To my memory, I can’t recall us ever making or turning down an acquisition
based on a macro factor. We focus on what’s likely to be the average profit, the moat.
Any company that has an economist has one employee too many.”
Short-term predictions are hard.
In late 2024, DBS Group (SGX: D05) forecasted that the Straits Times Index (SGX: ^STI) would reach 3,950 by the end of 2025.
The index ended 2025 at 4,646.21, producing one of its best performances in years.
It’s not a slight on the local bank.
But it tells you that getting it right is not a question of talent or resources; DBS has plenty.
4. Remember, you’re buying a business, not a stock symbol
“Nobody buys a farm to make a lot of money next week or next month. They buy
it to make money over the long term. They don’t get a quote every day. That’s a better way to look at stocks.”
When stocks go up, you feel like a genius.
However, it shouldn’t distract you from focusing on what’s important, the business behind the stock. That applies whether stock prices are up or down.
Consistency is underrated.
5. Be smart by keeping it simple
“I don’t look to jump over 7-foot bars, I look for 1-foot bars I can step over.”
Investors don’t need to seek out the most complex businesses to achieve significant gains.
Simple, understandable companies like Sheng Siong (SGX: OV8), a supermarket operator, can deliver impressive returns.
6. The one thing that a business should have is …
“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business.
And if you have to have a prayer session before raising the price by a tenth of a cent, then you’ve got a terrible business.”
It’s no secret that inflation has surged in recent years.
This factor makes pricing power more crucial than ever for businesses. Without the ability to raise prices, struggling companies may face significant challenges in maintaining profitability.
7. Take your time to pick the best companies
In baseball, failing to swing at three pitches results in a strikeout.
Warren Buffett famously used this analogy to highlight a key difference between baseball and investing, saying:
“The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”
Understand the business before you commit your money. Not every stock that falls is worth your attention or your money.
8. Keep learning
In 2000, he addressed a group of MBA students on how to become a great investor:
“Read 500 pages like this every day.
That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
If the recent pandemic has taught us anything, there are always more things to learn about businesses and industries as they evolve in the post-pandemic era.
9. Patience is under-rated
As the story goes, Amazon (NASDAQ: AMZN) founder and Chairman Jeff Bezos once asked the Oracle of Omaha a simple question:
‘Your investment style is so simple, why isn’t anyone copying you?’
Buffett’s insightful response:
‘No one wants to get rich slowly.’
This highlights a crucial aspect of successful investing: patience.
Back in 2022, amid a challenging year in the stock market, many investors were tempted to give up.
We are glad we didn’t.
Patience is paramount.
The true test for investors lies in their ability to weather market fluctuations and allow their long-term investments to compound.
10. As always, think beyond 2026 and for the long term …
“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Good things are worth the wait.
The Smart Dividend Portfolio was launched in January 2020.
As of 30 November 2025, the portfolio has delivered a net asset value return of 74%.
In contrast, Singapore’s STI was up 42.5% since the portfolio’s first stock buy.
When the market is unpredictable, where can you park your money with confidence? Our latest FREE report reveals 5 Singapore dividend-payers built to withstand global storms. Get it now and see what’s still worth holding.
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Disclosure: Chin Hui Leong owns shares of Amazon, Sheng Siong, and Berkshire Hathaway.
