Customer Quote by Warren Buffett
“Consciously paying more for a stock than its calculated value - in the hope that it can soon be sold for a still-higher price - should be labelled speculation”
About This Quote
Source Speech: Annual Shareholder Letter, Warren Buffett, 1996
Investing beyond intrinsic value hoping for quick resale is speculative, not value investing.
In simple terms: Buying overpriced stocks to sell higher is speculation.
Key Takeaway
Avoid speculation; focus on intrinsic value.
Themes
investment
speculation
value
risk
patience
Mood
cautious
analytical
Type
financial
advisory
When to use this quote
- stock selection
- portfolio management
- risk assessment
Key Concepts
Intrinsic value
market expectations
behavioral finance
Questions to Reflect On
- Do you assess intrinsic value before buying?
- How do you handle market hype?
A Different Perspective
Speculation can lead to losses if market turns.
![“[W]e think the very term 'value investing' is redundant. What is 'investing' if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value -- in the hope that it can soon be sold for a still-higher price…” quote by Warren Buffett](https://sms4smile.com/quotes/img-quotes/62b/warren-buffett-183_amount_w-e-think-the-very-term-value-investing_1594487.jpg)
