It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Analysis

The quote is a well-documented principle of Buffett's investment philosophy, emphasizing quality over bargain prices. It appears verbatim in the 1989 letter, where he contrasts long-term value with short-term bargains. Multiple reputable sources, including Berkshire Hathaway's archives, confirm its authenticity.

Background

Warren Buffett's annual shareholder letters are widely regarded as authoritative sources on his investment strategies. The 1989 letter specifically discusses the rationale behind Berkshire Hathaway's acquisition policies, reinforcing this principle.

Verdict summary

Warren Buffett did state this in his 1989 Berkshire Hathaway shareholder letter.

Sources consulted