---
title: "Meaning & Key Takeaway of: This is how top investor Warren Buffett…"
description: "\"“This is how top investor Warren Buffett does things: “Each deal we measure against the second-best deal that is available at any given time—even if it..."
image: "https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png"
---

#  This is how top investor Warren Buffett does things: “Each…

![“This is how top investor Warren Buffett does things: “Each deal we measure against the second-best deal that is available at any given time—even if it means doing more of what we are already doing.” quote by Rolf Dobelli](https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png)   [Download](https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png) [Open image](https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png)

> ““This is how top investor Warren Buffett does things: “Each deal we measure against the second-best deal that is available at any given time—even if it means doing more of what we are already doing.””

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Evaluate each opportunity by comparing it to the next best alternative, even if it means repeating familiar actions.

**In simple terms:** Compare options to the second-best choice.

Key Takeaway

Use the second-best benchmark.

Themes

decision-making strategy investment comparison

Mood

analytical pragmatic

Type

advice philosophical

When to use this quote

- business negotiations
- investment decisions
- project selection
- resource allocation

Key Concepts

opportunity cost benchmarking risk assessment

Questions to Reflect On

- How does this approach affect innovation?
- When might a different benchmark be better?

A Different Perspective

Focusing on the second-best may overlook unique opportunities.

★ ★ ★ ★ ★   No ratings yet

[Buffett Does](https://sms4smile.com/quotes/about/buffett-does-447333/) [Customer](https://sms4smile.com/quotes/about/customer/) [Deal Measure](https://sms4smile.com/quotes/about/deal-measure-5854403/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investor](https://sms4smile.com/quotes/about/investor/) [Investor Warren](https://sms4smile.com/quotes/about/investor-warren-5854402/) [Warren buffett](https://sms4smile.com/quotes/about/warren-buffett/)

## Related quotes

> [The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you. And…](https://sms4smile.com/quotes/charlie-munger/the-great-lesson-in-microeconomics-is-to-discriminate-between-when/)

[Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/)

> [Buffett does enjoy being a billionaire, but in offbeat ways. As he put it, though money cannot change your health or how many people…](https://sms4smile.com/quotes/roger-lowenstein/buffett-does-enjoy-being-a-billionaire-but-in-offbeat-ways-as-he-put/)

[Roger Lowenstein](https://sms4smile.com/quotes/author/roger-lowenstein/)

> [The person who I admire most in business is Warren Buffett. He is a long-term investor and has brilliant ideas, and he sticks to…](https://sms4smile.com/quotes/bernard-arnault/the-person-who-i-admire-most-in-business-is-warren-buffett-he-is-a/)

[Bernard Arnault](https://sms4smile.com/quotes/author/bernard-arnault/)

> [Nebraska was home to indigenous peoples for centuries. It became a state in 1867, and has produced an important literary figure, Willa Cather, as…](https://sms4smile.com/quotes/stephen-kinzer/nebraska-was-home-to-indigenous-peoples-for-centuries-it-became-a/)

[Stephen Kinzer](https://sms4smile.com/quotes/author/stephen-kinzer/)

> [At one point, I recognized that Warren Buffett, though he had every advantage in learning from Ben Graham, did not copy Ben Graham but,…](https://sms4smile.com/quotes/michael-burry/at-one-point-i-recognized-that-warren-buffett-though-he-had-every/)

[Michael Burry](https://sms4smile.com/quotes/author/michael-burry/)

> [The average investor does significantly worse than a simple index... It's literally because of the way our brains are wired.](https://sms4smile.com/quotes/james-o-shaughnessy/the-average-investor-does-significantly-worse-than-a-simple-index-it/)

[James O'Shaughnessy](https://sms4smile.com/quotes/author/james-o-shaughnessy/)

> [Smart tech investor thinks about: a) future product roadmap, b) bottoms-up market size & growth, c) talent and skill of team. Essentially you are…](https://sms4smile.com/quotes/marc-andreessen/smart-tech-investor-thinks-about-a-future-product-roadmap-b-bottoms/)

[Marc Andreessen](https://sms4smile.com/quotes/author/marc-andreessen/)

> [If you're looking for investment you've got to think about what the investor gets from being involved with your business. A lot of people…](https://sms4smile.com/quotes/deborah-meaden/if-you-re-looking-for-investment-you-ve-got-to-think-about-what-the/)

[Deborah Meaden](https://sms4smile.com/quotes/author/deborah-meaden/)

> [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/)

[Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/)

> [All capitalists should be like Warren Buffett, and he says he should be taxed more.](https://sms4smile.com/quotes/ed-asner/all-capitalists-should-be-like-warren-buffett-and-he-says-he-should/)

[Ed Asner](https://sms4smile.com/quotes/author/ed-asner/)

> [Warren Buffett once wrote that value investing is like an inoculation--it either takes or it doesn't--and when you explain to somebody what it is…](https://sms4smile.com/quotes/seth-klarman/warren-buffett-once-wrote-that-value-investing-is-like-an-inoculation/)

[Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/)

> [“A good managerial record is more a function of which boat you get into rather than how effectively you row"1 Warren Buffett”](https://sms4smile.com/quotes/michael-l-george/a-good-managerial-record-is-more-a-function-of-which-boat-you-get/)

[Michael L. George](https://sms4smile.com/quotes/author/michael-l-george/)

> [“The last four and a half years have been carefree, halcyon times for investors. That doesn’t mean it’ll stay that way. I’ll give Warren…](https://sms4smile.com/quotes/howard-marks/the-last-four-and-a-half-years-have-been-carefree-halcyon-times-for/)

[Howard Marks](https://sms4smile.com/quotes/author/howard-marks/)

> [I admire people like Warren Buffett that are donating so much money to charity.](https://sms4smile.com/quotes/bethenny-frankel/i-admire-people-like-warren-buffett-that-are-donating-so-much-money/)

[Bethenny Frankel](https://sms4smile.com/quotes/author/bethenny-frankel/)

> [If you look at anyone who has achieved great success and wealth, people like Warren Buffett, Oprah Winfrey, or Lance Armstrong, they have all…](https://sms4smile.com/quotes/robert-kiyosaki/if-you-look-at-anyone-who-has-achieved-great-success-and-wealth/)

[Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/)

## More by Rolf Dobelli

> [News is to the mind what sugar is to the body.](https://sms4smile.com/quotes/rolf-dobelli/news-is-to-the-mind-what-sugar-is-to-the-body/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“A second, parallel explanation of why our mistakes are so persistent took shape in the late 1990s: Our brains are designed to reproduce rather…](https://sms4smile.com/quotes/rolf-dobelli/a-second-parallel-explanation-of-why-our-mistakes-are-so-persistent/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“A mathematician is afraid of flying due to the small risk of a terrorist attack. So, on every flight he takes a bomb with…](https://sms4smile.com/quotes/rolf-dobelli/a-mathematician-is-afraid-of-flying-due-to-the-small-risk-of-a/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“Trust your internal observations too much and too long, and you might be in for a very rude awakening. Second, we believe that our…](https://sms4smile.com/quotes/rolf-dobelli/trust-your-internal-observations-too-much-and-too-long-and-you-might/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“the typical response to scarcity is a lapse in clear thinking. Assess products and services solely on the basis of their price and benefits.…](https://sms4smile.com/quotes/rolf-dobelli/the-typical-response-to-scarcity-is-a-lapse-in-clear-thinking-assess/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“The confirmation bias is alive and well in the business world. One example: An executive team decides on a new strategy. The team enthusiastically”](https://sms4smile.com/quotes/rolf-dobelli/the-confirmation-bias-is-alive-and-well-in-the-business-world-one/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“An unrealized loss isn't as painful as realized one.”](https://sms4smile.com/quotes/rolf-dobelli/an-unrealized-loss-isn-t-as-painful-as-realized-one/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [If you spend fifteen minutes in a shopping mall, you will pass more people than our ancestors saw during their entire lifetimes.](https://sms4smile.com/quotes/rolf-dobelli/if-you-spend-fifteen-minutes-in-a-shopping-mall-you-will-pass-more/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“In conclusion: Don’t cling to things. Consider your property something that the “universe” (whatever you believe this to be) has bestowed to you temporarily.…](https://sms4smile.com/quotes/rolf-dobelli/in-conclusion-don-t-cling-to-things-consider-your-property-something/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“The sunk cost fallacy is most dangerous when we have invested a lot of time, money, energy, or love in something. This investment becomes…](https://sms4smile.com/quotes/rolf-dobelli/the-sunk-cost-fallacy-is-most-dangerous-when-we-have-invested-a-lot/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“Our school system is largely geared toward the set-up: the emphasis on factual knowledge and certifications makes it seem like life is primarily about…](https://sms4smile.com/quotes/rolf-dobelli/our-school-system-is-largely-geared-toward-the-set-up-the-emphasis-on/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“Wir sollten darauf achten, einer Erfahrung nur so viel Weisheit zu entnehmen, wie in ihr steckt - mehr nicht.”](https://sms4smile.com/quotes/rolf-dobelli/wir-sollten-darauf-achten-einer-erfahrung-nur-so-viel-weisheit-zu/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [It's okay to be envious - but only of the person you aspire to become.](https://sms4smile.com/quotes/rolf-dobelli/it-s-okay-to-be-envious-but-only-of-the-person-you-aspire-to-become/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“After receiving the Nobel Prize in Physics in 1918, Max Planck went on tour across Germany. Wherever he was invited, he delivered the same…](https://sms4smile.com/quotes/rolf-dobelli/after-receiving-the-nobel-prize-in-physics-in-1918-max-planck-went-on/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

> [“The inept are gifted at overlooking the extent of their incompetence. They suffer from illusory superiority, which leads them to make even more thinking…](https://sms4smile.com/quotes/rolf-dobelli/the-inept-are-gifted-at-overlooking-the-extent-of-their-incompetence/)

[Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/)

[Explore all 50 Rolf Dobelli quotes ](https://sms4smile.com/quotes/author/rolf-dobelli/)

## More Customer quotes

> [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term…](https://sms4smile.com/quotes/barry-ritholtz/amongst-the-financial-twitterati-the-term-muppets-has-come-to/)

[Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/)

> [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/)

[Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/)

> [The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.](https://sms4smile.com/quotes/benjamin-graham/the-purpose-of-this-book-is-to-supply-in-the-form-suitable-for-laymen/)

[Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/)

> [Don't think OF the market. Think AS the market.](https://sms4smile.com/quotes/michael-fishman/don-t-think-of-the-market-think-as-the-market/)

[Michael Fishman](https://sms4smile.com/quotes/author/michael-fishman/)

> [If Wall Street crashes, does Main Street follow? Not necessarily.](https://sms4smile.com/quotes/ben-bernanke/if-wall-street-crashes-does-main-street-follow-not-necessarily/)

[Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/)

> [The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for…](https://sms4smile.com/quotes/whitney-tilson/the-exact-details-of-how-you-practice-value-investing-will-vary/)

[Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/)

> [The best way to hold customers is to constantly figure out how to give them more for less.](https://sms4smile.com/quotes/philip-kotler/the-best-way-to-hold-customers-is-to-constantly-figure-out-how-to/)

[Philip Kotler](https://sms4smile.com/quotes/author/philip-kotler/)

> [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/)

[Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/)

> [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/)

[Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/)

> [Corporations invest in sophisticated CRM, or Customer Relationship Management, programs to effectively oversee their relationship with their customers at every point during the buying…](https://sms4smile.com/quotes/marc-ostrofsky/corporations-invest-in-sophisticated-crm-or-customer-relationship/)

[Marc Ostrofsky](https://sms4smile.com/quotes/author/marc-ostrofsky/)

> [I believe confusion is good. Worldwide market leaders gain when there is confusion in the market.](https://sms4smile.com/quotes/subhash-chandra/i-believe-confusion-is-good-worldwide-market-leaders-gain-when-there/)

[Subhash Chandra](https://sms4smile.com/quotes/author/subhash-chandra/)

> [Damn inflation, full speed ahead,' Greenspan has said in both action and word. I think an investor should believe him and invest accordingly.](https://sms4smile.com/quotes/bill-gross/damn-inflation-full-speed-ahead-greenspan-has-said-in-both-action-and/)

[Bill Gross](https://sms4smile.com/quotes/author/bill-gross/)

> [“When companies get big, they devote most of their care and feeding to the business that got them big. This is as it should…](https://sms4smile.com/quotes/eric-schmidt/when-companies-get-big-they-devote-most-of-their-care-and-feeding-to/)

[Eric Schmidt](https://sms4smile.com/quotes/author/eric-schmidt/)

> [“Salesmanship is usually the art of making it the prospect’s problem, the salesperson’s need or desire to earn money.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/salesmanship-is-usually-the-art-of-making-it-the-prospect-s-problem/)

[Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/)

[Browse all 9,257 Customer quotes ](https://sms4smile.com/quotes/about/customer/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "“This is how top investor Warren Buffett does things: “Each deal we measure against the second-best deal that is available at any given time—even if it means doing more of what we are already doing.”",
            "creator": {
                "@type": "Person",
                "name": "Rolf Dobelli"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/rolf-dobelli/this-is-how-top-investor-warren-buffett-does-things-each-deal-we/",
            "about": {
                "@type": "Thing",
                "name": "Customer"
            },
            "@id": "https://sms4smile.com/quotes/rolf-dobelli/this-is-how-top-investor-warren-buffett-does-things-each-deal-we/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png",
                "contentUrl": "https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png",
                "url": "https://sms4smile.com/quotes/i/960/rolf-dobelli-11723_customer_this-is-how-top-investor-warren-buffett_1560771.png",
                "width": 1080,
                "height": 1080,
                "caption": "“This is how top investor Warren Buffett does things: “Each deal we measure against the second-best deal that…” — Rolf Dobelli",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Rolf Dobelli",
                    "item": "https://sms4smile.com/quotes/author/rolf-dobelli/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "“This is how top investor Warren...",
                    "item": "https://sms4smile.com/quotes/rolf-dobelli/this-is-how-top-investor-warren-buffett-does-things-each-deal-we/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/rolf-dobelli/this-is-how-top-investor-warren-buffett-does-things-each-deal-we/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```