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 play because I have fun, if I don't have fun on the court, there is something wrong. I am just a 19 year old boy that likes to do what he likes, nothing else.
It's really annoying for me. That's not what I'm playing for, to be the face of the NBA or to be this or that or to take LeBron's throne or whatever.
Acquire Riches by Industry and Frugality.
Long-term success requires faith-faith that your efforts to plan and execute the process will lead to the desired outcome.
The most successful people in this world recognize that taking chances to get what they want is much more productive than sitting around being too scared to take a shot.
Success is determined not by whether or not you face obstacles, but by your reaction to them. And if you look at these obstacles as a containing fence, they become your excuse for failure. If you look at them as a hurdle, each one strengthens you for the next.
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