So over the past year, as markets repeatedly defied expectations, I've had one of his most famous quotes running through my mind.
"Be fearful when others are greedy, and greedy when others are fearful."
Certainly feels like there's been a lot of greed washing around the market lately.
To be clear, I've loved that people have started paying more attention to their money in the past year.
Despite the uncertainty, or maybe because of it, people are now diving into the share market in greater numbers than we've seen before.
This surge in interest is fantastic, and overall, definitely a positive thing.
What worries me is how much emotion is in the mix.
Emotions and money are like petrol and fire. They shouldn't be mixed, and if you try it, you likely won't enjoy the result.
Gurus have popped up promising strategies to get rich quickly, hyped stocks are being spread through online forums and social media.
The latest GameStop saga shows that while the phenomenon can be fun to watch from a distance, it is unfortunately normal people who are left carrying the can when the frenzy dies down. For every one winner, there are 10 losers.
The reaction to this hype in one corner can be a backlash from the opposing corner. People who warn that the sharemarket is like a casino, and if you dabble, you should prepare to get burned.
That's not true either. Shares are a proven strategy to build wealth, by taking part ownership of a business.
The business is as real and solid as any other asset, and if it does well, you as part-owner get a cut of the profits. That's far from slapping for $50 on red at the roulette table.
Through all of the high highs and low lows of the market over the past year, what I've personally found works is to stick to the investing plan I already had in place. To not be distracted by chatter about the latest hot stock, to not put in more or less than I had already budgeted for.
The comfort of sticking with a pre-decided routine left no room for emotion to cloud my judgment.
It's something that many financial advisers will suggest. Expect that stocks will bounce around, include turbulence in your plan from the beginning, and decide what you will do before the heat comes on.
Trying to change course in the heat of the moment means you'll almost certainly let greed, fear, or FOMO take the wheel.
Instead, hatching a plan with a cool head, then sticking to it when the pressure comes on, is what works best for the most people.
If all else fails, vet the information you're getting carefully. Social media hype is almost certainly a bad way to invest.
Prices match hype with lightning speed. By the time hype has started building, you've already missed the boat. If you're reading about it in an online forum, even if there was some truth to the tip in the beginning, it's now too late.
Taking time to read books on proven strategies, to check in with a financial provider, or read the business pages of a newspaper, may sound boring. But the best money management often is.
After all, to finish with another Warren Buffett gem: "Risk comes from not knowing what you're doing."
Get all the tips when you listen to the latest Cooking the Books podcast here:
• If you have a money question you'd like answered in the future, come and talk to me about it. I'm on Facebook here, Instagram here and Twitter here.
• Hear more on the Cooking the Books podcast. You can find new episodes in the Herald, or subscribe on iHeartRadio, Apple podcasts app, or Spotify, or wherever you get your podcasts.
