A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem.
Interpretation
A prime investment is found when a strong business faces a significant yet manageable challenge.
Warren Buffett emphasizes that the best investment opportunities arise when robust businesses encounter large problems that can be effectively addressed. This suggests that discerning investors can capitalize on obstacles faced by successful companies, turning potential setbacks into lucrative chances for profit.
In practice
In a business seminar to illustrate the potential in challenges.
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.
I think I did pretty well, considering I started out with nothing but a bunch of blank paper.
Setbacks and losses are both inevitable and essential if you're going to improve and become a good, even great, competitor. The art is in avoiding catastrophic losses in the key battles.
Vision gets the dreams started. Dreaming employs your God-given imagination to reinforce the vision. Both are part of something I believe is absolutely necessary to building the life of a champion, a winner, a person of high character who is consistently at the top of whatever game he or she is in.
It has been my observation that most people get ahead during the time that others waste.
Vision without execution is daydreaming.
As you become more successful, the gender barrier disappears. The credibility challenges you have during your growing up years starts disappearing when you start demonstrating success.
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