An investor needs to do very few things right as long as he or she avoids big mistakes.
Interpretation
Successful investing relies more on avoiding major errors than on making perfect choices.
Warren Buffett's quote emphasizes the importance of risk management in investing. It suggests that rather than striving for perfection in every investment decision, an investor should focus on steering clear of significant mistakes, which can be detrimental to their financial health. By minimizing the chances of making serious errors, investors can achieve long-term success even with limited correct decisions.
In practice
During a financial seminar on investment strategies, one might say this quote to highlight the importance of risk management.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
Creating a strong business and building a better world are not conflicting goals - they are both essential ingredients for long-term success
When I came to New York, I told everyone I was a writer/director, and they said, 'No.' There was a rule. You could be one or the other. They ordained me writer. But then I won the Obie for directing 'Spunk,' and the rules changed.
The fame you earn has a different taste from the fame that is forced upon you
Playing in the playoffs is the best basketball in the world, and if you can learn under that pressure, succeed under that pressure, it gives you more confidence the next year.
If you spend too much time learning the 'tricks' of the trade, you may not learn the trade. There are no shortcuts. If you're working on finding a short cut, the easy way, you're not working hard enough on the fundamentals. You may get away with it for a spell, but there is no substitute for the basics. And the first basic is good, old fashioned hard work.
If you don't plan to dive in and dedicate all of your time to your startup, you probably shouldn't be looking for funding. It's hard enough asking for money when you believe in an idea; asking for money to fund something you're iffy about is ten times more strenuous.
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