A Quote by Warren Buffett
Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.
Related Quotes
Wide diversification is only required when investors do not understand what they are doing.
You only have to do a very few things right in your life so long as you don't do too many things wrong.
There are only a few things investors can do to counteract risk: diversify adequately, hedge when appropriate, and invest with a margin of safety. It is a precisely because we do not and cannot know all the risks of an investment that we strive to invest at a discount. The bargain element helps to provide a cushion for when things go wrong.
You can't do things unexpected in life if you're not willing to take a risk, and it's easier to risk your own life than it is for your parent to watch you take risks. It's very, very hard for parents to see children doing things that aren't a solid path. I've been through that.
Unlike most of life, what you do really matters. Your actions have real consequences. You have to pay attention and focus, and that's very satisfying. It forces you to pay great attention and you lose yourself in the task at hand. Without the risk, that wouldn't happen, so the risk is an essential part of climbing, and that's hard for some people to grasp. You can't justify the risk when things go wrong and people die. The greater the risk, the greater the reward in most aspects of life, and in climbing that's certainly true, too. It's very physical, you use your mind and your body.
The idea of excessive diversification is madness. Wide diversification, which necessarily includes investment in mediocre businesses, only guarantees ordinary results.
The secret of the truly successful, I believe, is that they learned very early in life how not to be busy. They saw through that adage, repeated to me so often in childhood, that anything worth doing is worth doing well. The truth is, many things are worth doing only in the most slovenly, halfhearted fashion possible, and many other things are not worth doing at all.
I have been around this long enough to know that there are no givens in this particular sport. There are too many things that can go wrong. There are too many things that can change.
Learning from our mistakes is critical for improving, but even I don't have patience for ranking my regrets. Regret is a negative emotion that inhibits the optimism required to take on new challenges. You risk living in an alternative universe, where if only you had done this or that differently, things would be better. That's a poor substitute for making your actual life better, or improving the lives of others. Regret briefly, analyze and understand, and then move on, improving the only life you have.
In reality I have said very little things; I didn't point out many things to Geoffrey, I trusted very much not only his understanding of what I was doing, or what I wanted to do, in that moment.
I am thing that thinks: that is, a things that doubts,affirms, denies, understands a few things, is ignorant of many things, is willing, is unwilling, and also which imagines and has sensory perceptions.
Great entrepreneurs focus intensely on an opportunity where others see nothing. This focus and intensity helps to eliminate wasted effort and distractions. Most companies die from indigestion rather than starvation, i.e. companies suffer from doing too many things at the same time rather than doing too few things very well.
Great entrepreneurs focus intensely on an opportunity where others see nothing. This focus and intensity helps to eliminate wasted effort and distractions. Most companies die from indigestion rather than starvation, i.e., companies suffer from doing too many things at the same time rather than doing too few things very well.
The state ought not to intervene to prevent individuals from doing things that not only are no risk to others but are of no risk to themselves either.
As a professional, you can afford to pick some stocks and be wrong about a few of them. To keep your job, you cannot take the risk of being seen to be wrong about the 'big picture' for very long.
Nature is a hanging judge," goes an old saying. Many tragedies come from our physical and cognitive makeup. Our bodies are extraordinarily improbable arrangements of matter, with many ways for things to go wrong and only a few ways for things to go right. We are certain to die, and smart enough to know it. Our minds are adapted to a world that no longer exists, prone to misunderstandings correctable only by arduous education, and condemned to perplexity about the deepest questions we can ascertain.
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