In 1982’s letter, Buffett explained that “what really makes us dance” was the purchase of 100% of good businesses at reasonable prices, which he conceded was an “extraordinarily difficult job”. Pay cashOne of the many lessons Buffett learned at his, and his investors’, expense was to pay cash – not shares – for acquisitions. Photograph: Angela Weiss/AFP/Getty ImagesOn fear and greed …In 1986, Buffett coined his most famous quote on investing: to be fearful when others are greedy and to be greedy only when others are fearful. The dangers of derivatives – weapons of mass destructionIn his 2002 letter, Buffett said derivatives were “time bombs, both for the parties that deal in them and the economic system”. He warned:In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

Source: The Guardian December 30, 2025 15:17 UTC