The Wisdom of Warren Buffett

"Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."


Warren has always thought it strange that highly successful and intelligent businesspeople, who have spent lifetimes making huge sums of money, will take investment advice from stockbrokers too poor to take their own advice. And if their advice is so great, why aren't they all rich? Maybe it's because they don't get rich off their advice but off charging you commissions?

One should be aware of people who need to use your money to make you rich, especially when the more things they sell you means the more money THEY will make. More often than not, their agenda is to use your money to make themselves rich. And if they lose your money? Well, they just go out and find someone else to sell their advice to.

Warren feels so strongly about where Wall Street's true loyalties lie that he refuses to even look at the business projections that its analysts put together because, regardless of the nature of the business, the projections are always way too rosy.

* * * * *