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.
Our net worth is ultimately defined not by dollars but rather by how well we serve others.
When I grew up, my father used to say that cricket is not a profession, cricket cannot bring you food. But I think he lived to see the day when I was actually paid.
Knowledge will not attract money, unless it is organized, and intelligently directed, through practical plans of action, to the definite end of accumulation of money.
I would sooner fail than not be among the greatest.
I only have one superstition: I make sure to touch all the bases when I hit a home run.
If you are playing bad you are going to lose here, on clay, on ice, or on the beach.
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