Activity Quote by Warren Buffett
“One of the ironies of the stock market is the emphasis on activity. Brokers, using terms such as 'marketability' and 'liquidity,' sing the praises of companies with high share turnover... but investors should understand that what is good for the croupier is not good for the customer. A hyperactive stock market is the pick pocket of enterprise.”
About This Quote
Source Letter to Shareholders, Berkshire Hathaway, 1997
The market’s focus on frequent trading benefits brokers, not investors; excessive activity can erode returns.
In simple terms: Too much trading hurts investors.
Key Takeaway
Prioritize long‑term value over short‑term moves.
Themes
investment
patience
market dynamics
Mood
cautious
analytical
Type
advisory
philosophical
When to use this quote
- retirement planning
- portfolio review
- stock selection
Key Concepts
behavioral finance
agency problem
Questions to Reflect On
- Why do you feel compelled to trade often?
- What long‑term strategies could replace frequent trading?
A Different Perspective
Active trading can increase costs and risk.
![“I just think that Kimbo [Slice] in the future could be a great fighter. He's got the look and obviously he's got the marketability but skill-wise he really hasn't gotten an opportunity to settle in and develop on his skills.” quote by Ken Shamrock](https://sms4smile.com/quotes/img-quotes/1fb/ken-shamrock-11054_fighter_i-just-think-that-kimbo-slice-in-the-fut_2117284.jpg)
