We try not to have many investing 'rules,' but there is one that has served us well: If we decide we were wrong about something, in terms of why we did it, we exit, period.
Interpretation
Recognizing when you're wrong and making a decisive exit is crucial in investing.
This quote by David Einhorn emphasizes the importance of adaptability and decisiveness in the world of investing. It highlights that investors should not be overly bound by rigid rules; instead, they should be willing to acknowledge their mistakes and swiftly pivot away from unprofitable positions. This mindset fosters a more dynamic approach to investing, allowing for better decision-making based on current realities rather than past convictions.
In practice
This quote can be used in a financial seminar to illustrate the importance of recognizing and learning from mistakes in investing.
The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will.
I enjoy what I do because it keeps evolving - when I was a cook, I wanted to be a chef de partie; when I was a chef de partie, I wanted to be a chef; when I was a chef, I wanted to be a restaurateur, and now I am a chef entrepreneur. I am still fulfilling my dream.
To have played and laughed with enthusiasm, and sung with exultation - this to to have succeeded.
I've made peace with the fact that the World Cup will not define me. Yes, it would be nice to add that to what's been a very enjoyable career, but I know it won't define me as a person or cricketer.
The secret to success: find something you love to do so much, you can’t wait for the sun to rise to do it all over again.
The secret of successful retailing is to give your customers what they want
I've found that small wins, small projects, small differences often make huge differences.
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