New to Investing? Here’s 1 of Warren Buffett’s Most Important Quotes

As market uncertainty continues to intensify, here’s some advice from the Oracle of Omaha to help you navigate this environment.

| More on:
close-up photo of investor Warren Buffett

Image source: The Motley Fool

Warren Buffett is well-known as one of the best investors of all time. While many of the richest people in the world have started businesses or created new products, Buffett has built his wealth simply through buying stocks.

In fact, from 1965 through to the end of 2021, Buffett had grown his holding company Berkshire Hathaway’s market value by over 3,600,000%, or a compound annual growth rate of more than 20%.

In comparison, the S&P500 had grown at a compound annual growth rate of 10.5% over that time period, which equates to a total return of just 30,200%, compared to Buffett’s 3.6 million.

But while Buffett’s results make him seem like a genius, in reality, he uses a simple buy-and-hold method. One of his greatest strengths is the fact that he can be exceptionally disciplined and patient, two key traits all investors need in order to be successful.

As market volatility continues to pick up, whether you’re new to investing or have been around the block a few times, here’s a simple reminder from Warren Buffett on how to keep a long-term outlook and stay disciplined.

One of Warren Buffett’s most famous quotes

Buffett has several famous quotes that can really help investors gain perspective on finding high-quality stocks to buy, with a focus on looking for companies that you can own for the long haul.

Perhaps his most famous quote came from his 1986 letter to shareholders when he wrote, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

We all know that the stock market goes through inevitable cycles. Rather than becoming fearful when the market is selling off and rushing to sell your stocks at one of the worst times, it’s better to be greedy and look for the best bargains you can find.

There is no better time to buy stocks than during a stock market pullback. However, you shouldn’t just buy any stock.

It’s not easy to put your money to work and buy companies that have been consistently losing money all year. However, if you can find businesses that you have confidence in, ones that are positioned to survive a recession and continue growing for years and decades to come, then buying them at a discount today is a significant opportunity.

Here’s why buying the dip can be so crucial

For a great example of the payoff that can come from buying the dip and holding long-term, let’s look back to 2008 and consider Canadian Pacific Railway (TSX:CP)(NYSE:CP). Railway stocks have always been blue-chip investments that offer excellent long-term growth since rail is the most efficient mode of transportation.

And before the market sell-off in 2008, CP Rail traded at around $15 a share. By the time the stock hit its low in early 2009, it had sunk more than 50% to below $7 a share.

So, investors who bought right before the selloff, panicked and sold in the downturn, would have locked in a loss. Had you held the stock, you would have seen it recover in price by late 2010 and early 2012 when it began to post significant gains.

That’s why it’s crucial to find high-quality, reliable stocks and hold them for the long haul.

However, if you were to take it a step further and buy during the selloff, then become greedy when the market was fearful, you could have earned a massive return on investment.

Even if you missed the bottom and bought the stock for $8 a share and held it until today, you’d have earned a total return of more than 1,300%. Had you waited for the stock and market to recover fully and bought at around $11.50 a share later in the year, that investment would have grown 725%.

That’s still a significant return thanks to the buy-and-hold strategy that Warren Buffett has made so famous. To be successful in investing, take advantage of major market selloffs, such as what we’re seeing today, and think long-term.

Should you invest $1,000 in SNC-Lavalin right now?

Before you buy stock in SNC-Lavalin, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and SNC-Lavalin wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Stocks for Beginners

path road success business
Dividend Stocks

How to Invest $50,000 of Tax-Free Cash as Canada-US Trade Uncertainty Escalates

Few Canadian stocks are as easy a choice as this one, making it perfect during volatile periods.

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Got $25,000? Turn it Into $250,000 in a TFSA as the Canadian Dollar Rises

Investing doesn't have to be risky or difficult, especially with this top stock.

Read more »

Oil industry worker works in oilfield
Dividend Stocks

Invest $20,000 in This TSX Stock for $1,519.76 in Passive Income

So you want some passive income? Consider this top TSX stock.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Stocks for Beginners

TFSA: Invest $10,000 in Rogers Sugar Stock, Create $641.52 in Annual Passive Income

Do you want a surprising dividend stock for annual income? Then this stock looks perfect.

Read more »

dividends can compound over time
Dividend Stocks

Is Fiera Stock a Buy for its Dividend Yield?

Fiera stock has one amazing dividend yield right now, but what else should investors consider?

Read more »

Technology
Stocks for Beginners

Top Canadian Stocks to Buy With a $7,000 Investment Today

So, you want to put that money to work? Don't overcomplicate things and instead invest in these top choices.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

How I’d Invest $20,000 in Canadian Renewable Energy Stocks to Become Financially Independent

Renewable energy stocks remain some of the best future investments, and these three already show strength.

Read more »

Income and growth financial chart
Tech Stocks

2 Canadian Stocks That Could Turn $10,000 Into $100,000

If you're looking for growth and income, these two are some of the best options out there.

Read more »