FinGuru's - CFA Program classes

There will always be cases and years in which, when all goes right, those who take on more risk will do better than we do. In the long run, however, seeking relative performance which is just a little bit above average on a consistent basis – with protection against poor absolute results in tough times – will prove more effective than ‘swinging for the fences.

“Anything times zero is zero,” said Warren Buffett, “and I don’t care how good the record is in every other year if one year there’s a zero…Charlie and I have seen guys go broke or close to it because 99 of 100 of their decisions were good, but the 100th did them in. “

You have to give yourself a chance to fail. Any attempt to outperform in any field entails the acceptance of the possibility of being wrong. Sitting on the sidelines with the fear of being wrong or waiting for the right moment to start, has huge consequences of lost opportunities.

We are constantly voting with our dollars telling the market what we want. How we spend our time and money collectively decides how the world works. Suppliers keenly look at all the data and set up supply chains to fulfil the desires we have.

If we all choose wisely, the supplier will have no option but to provide us with good choices to pick from.