4 quotes by Warren Buffet that will change how you think about investment

Warren Buffet is generally considered to be the best long-term investor of all time having started investing at the tender age of 11.

And while a number of his investments weren’t always successful, they were well thought out and followed value principles. That said, here are four quotes by Buffet that can make you a better investor:

1. "Someone's sitting in the shade today because someone planted a tree a long time ago"

This quote emphasizes more on being a forward thinker when it comes to personal finance, whether you're talking about investing, saving, or spending. When you're deciding whether to put some more money aside for emergencies, think of a financial emergency actually happening and how much easier your life will be if you have enough money set aside.

In the same way, a handful of people get rich quick by investing, and most people who try end up going broke. Buffett’s path to wealth creation was by building his portfolio one step at a time, while being focused on the long run.

2. "I made my first investment at age eleven. I was wasting my life until then."

Mr. Buffett has shared this quote many times when he talks about his early life in investing. Few investors who understand the power of compounding will relate to this very simply. Money that money earns, earns money; so earlier you start investing, the chances of achieving higher returns are higher.

Investing in value is a long term investment. It’s wise to invest while you’re young as the risk aversion may change according to your age. Nonetheless, if you are thinking of investing, the time is now!

3. "Price is what you pay; value is what you get"

One of Warren Buffett’s favorite old admonitions reveals that price and value are not always the same. While the intrinsic value of a business is in one way or another an imprecise estimate dependent on assumptions, it nevertheless stays within a much narrower range than the common stock price investors are asked to pay on any given day.

Therefore, as an investor, you should buy a stock if you believe its share price is less than the intrinsic value of the business -- not simply because you think the price is low.

4. "Risk comes from not knowing what you're doing"

According to Buffett, one of the best investments you can make is in yourself and the knowledge you have. It is not surprising that the self-made billionaire spends hours of every day reading, and has done so for most of his life.

The better educated you are on a topic, whether it's investing or anything else, the better equipped you'll be to make wise decisions and avoid unnecessary risks.