This quote from Warren Buffett encapsulates a core principle of his investment and business philosophy. Spoken in 1979, it continues to resonate with investors, entrepreneurs, and business leaders around the world.

Buffett's ability to distill complex financial and business concepts into memorable, quotable wisdom is one reason his annual letters and speeches are studied so widely. This particular quote touches on themes including business, turnarounds, risk management, demonstrating the interconnected nature of his thinking across investing, business management, and life.

For more Buffett wisdom on related topics, explore our collection of quotes, shareholder letters, and recommended books.