In our previous article, we covered the first 16 quotes from "The Wit and Wisdom of Warren Buffett: 40 Quotes You Can't Afford to Miss (Part 1)". 

Today, let's delve into the remaining quotes from the investing genius.

Stick to Your Circle of Competence and Identify Good Businesses

17

If you can't understand a business in a day or two, it's not worth investing in. To understand a business, you need sufficient background knowledge and a clear understanding of what you know and what you don't know. This is where the concept of the circle of competence comes in - you need to be aware of your own circle of competence.

18

Everyone has their own circle of competence, and it's not about the size of the circle but staying within its boundaries. If there are thousands of companies on the main board, and your circle of competence only covers 30 of them, that's okay as long as you know which 30.

19

When it comes to good businesses, nothing else matters. Timing the market is easy to get wrong. As long as it's a good business, I don't care about anything else, including what happens this year or next.

20

The biggest mistakes we've made haven't been errors of commission but errors of omission. We understood the business well, and we should have acted, but we hesitated and didn't do anything.

21

I don't study macroeconomic issues. The most important thing in investing is to understand what is important and knowable. If something is unimportant or unknowable, then don't bother with it.

22

The typical consulting firm's approach is to trot out their economists, talk about big macro trends, and then analyze from the top down. We think it's all nonsense.

23

When deciding whether to buy a company, we never base our decision on our feelings about macro issues. We don't look at forecasts for interest rates or earnings. It's pointless.

Be Friends with Time and Make Money Without Fussing

24

Find a good investment opportunity once a year and hold onto it until its potential is fully realized. 

In an environment where people shout out quotes every five minutes and reports are constantly being thrown at you, it's hard to stay put. Wall Street makes money by fussing around, but you make money by not fussing around.

25

If everyone in this room traded their investment portfolios with each other every day, everyone would end up bankrupt, and all the money would end up in the pockets of the middlemen. 

Instead, if you all hold onto a portfolio of good companies for 50 years without moving, you'll all end up rich, and your brokers will go bankrupt. Brokers are like doctors - the more often they get you to change your medication, the more they make.

If they give you one medicine that cures your illness, they can only make one transaction and then they're done. If they can convince you that taking different medicines every day is good for your health, that's good for them and for the drug companies, but you'll lose a lot of money. Your health won't improve, and you'll lose money.

26

Stay away from any environment that encourages you to fuss around. Wall Street is definitely one of those environments.

27

When we buy a company, we never set a price target. For example, if we bought at 30, we never thought about selling when it reached 30,we never thought about selling when it reached 40, 50, 50,60, or $100 - we've never done that. We hope that the companies we buy will still be good five years from now.

28

The correct way to think about a company is whether it can make more money over the long term. If the answer is yes, then there's no need to ask any other questions.

29

Time is the friend of good businesses and the enemy of bad ones. If you hold onto a bad business for a long time, even if you bought it cheaply, you'll only get a poor return in the end. If you hold onto a good business for a long time, even if you paid a high price for it, as long as you hold onto it for the long term, you'll still get an excellent return.

Diversify Your Investments but Don't Exceed Six Good Businesses

30

Unless you're a professional investor who aims to achieve excess returns through managing funds, I think you should diversify your investments heavily.

31

If you really understand a business, you shouldn't own more than six businesses at once. If you can find six good businesses to invest in, that's enough diversification - there's no need to diversify further. And if you don't invest in your most promising business but instead go looking for a seventh business, you're sure to fall into a ditch. Few people have gotten rich by relying on their seventh-best idea - many have gotten rich by relying on their best idea.

32

If I had to put all my money into one company and not touch it for 20 years, would I choose Procter & Gamble or Coca-Cola? Although Procter & Gamble has a more diversified product line, I believe Coca-Cola has higher certainty in terms of sales growth potential and pricing power.

33

I prefer businesses where the product itself sells well. McDonald's has been relying more and more on promotions in recent years rather than on selling its products themselves. In contrast, I prefer Gillette - people buy Fusion3 because they like Fusion3 itself, not because they want to get some free gift with purchase.

Advice for Young People

34

Habits are like chains that are light enough to be unnoticed at first but become too heavy to break free from later on.

35

If someone offered me $100 million to spend time with someone I can't stand, I'd refuse. What's the difference between marrying someone for money and doing something you hate for money? Don't marry for money, and if you're already rich, don't do anything for money.

36

I have a job I love, and I loved it even when $1,000 was a lot of money to me. Do what you love, don't do something you hate just to make your resume look better.

37

Do the job you want to do after you achieve financial freedom. That's the ideal job.

38

Doing a job you hate is like saving sex for old age. Sooner or later, you should start doing what you really want to do.

39

We don't dwell on the past because there's so much to look forward to in the future. Don't get hung up on things that have already happened. Life is about moving forward.

40

Do what you love and be with the people you love for your whole life.