I have never been able to understand why the tax comes as such a body blow to many people since the rate on long-term capital gain is lower than on most likes of endeavor (tax policy indicated digging ditches is regarded as socially less desirable than shuffling stock certificates).

Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.

It's better to build than to buy if you can find the right people.

I learned to go into business only with people whom I like, trust, and admire.

By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.

I would say the biggest single cause was we had an incredible residential real estate bubble.

So some guy may know how to make money in cocoa beans, but I don't so I just let him have that. But it's got to be something I understand. It's got to be a business with fundamentally good economics. It's got to be a management that I like and trust and admire. And it's got to be a price that makes sense.