Buffett: the making of an American capitalist

by Roger Lowenstein

Buffett’s genius was largely a genius of character—of patience, discipline, and rationality.

Graham’s accent was on cheap stocks—”cigar butts,” or stocks that one could pick up almost for free, like spent cigars, and that might have a couple of valuable “puffs” left in them.

You try to be greedy when others are fearful and you try to be very fearful when others are greedy.*

Buffett explained that he evaluated stocks exactly as he would an entire business: he looked for companies he understood, run by honest and competent managers, with favorable long-term prospects, and available at a decent price. He made no attempt to anticipate the short-term price action.