59 Quotes by Daniel Pecaut

On the Ideal Business - Buffett: “Something that costs a penny, sells for a dollar and is habit forming.

Value is what a business is worth. Price is what you have to pay to get it.

Buffett gave two criteria for evaluating the performance of management: 1) How well do they run the business? and 2) How well do they treat the owners?

Buffett also noted that book value is seldom meaningful in analyzing the value of a business. Book value simply records what was put into the business. The key to calculating value is determining what will come out of the business.

The danger of relying on historical statistics or formulas is that you end up betting on a 14-year-old horse with a great record but is now ready for the glue factory.

While inflation is still undesirable, well-run businesses that employ relatively little capital, that throw off lots of cash and that have pricing flexibility will cope well with inflation.

If you are going to be a lifelong buyer of food, you welcome falling prices and deplore price increases. So should it be with investments.

So instead of copying, understand why they made the decisions they did. Then apply those insights to your own decisions and your own position.

Buffett explained that buying a business is much like buying a bond with no maturity and with a blank coupon. You must write in the coupon, and the accuracy of that coupon is the essence of intelligent investing. If you cannot guess the coupon with any accuracy, then do not invest in the business.