Having a large amount of leverage is like driving a car with a dagger on the steering wheel pointed at your heart. If you do that, you will be a better driver. There will be fewer accidents but when they happen, they will be fatal.
Interpretation
Leverage can enhance performance but also increases risk significantly.
Warren Buffett's quote highlights the dual nature of leverage: it can amplify success and efficiency in driving results, akin to the precision required when navigating with a dagger at stake. However, this heightened effectiveness comes with dangers; if failure occurs, the consequences can be severe, emphasizing the need for caution when employing leverage in any endeavor.
In practice
In a business meeting about investment strategies.
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.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
Vengeance is having a videotape planted in your soul that cannot be turned off. It plays the painful scene over and over again inside your mind...And each time it plays you feel the clap of pain again...Forgiving turns off the videotape of pained memory Forgiving sets you free.
Healing may not be so much about getting better, as about letting go of everything that isn’t you - all of the expectations, all of the beliefs - and becoming who you are.
Maharajji told me, 'Give up anger and I'll help you.' I found _x000D_ that love freed me back into the ocean of love and my righteous anger didn't do that. And I would rather be free than right.
Those who occupy their minds with small matters, generally become incapable of greatness.
If you desire to be pure, have firm faith, and slowly go on with your devotional practices without wasting your energy in useless scriptural discussions and arguments. Your little brain will otherwise be muddled.
Ignorance is not a simple lack of knowledge but an active aversion to knowledge, the refusal to know, issuing from cowardice, pride, or laziness of mind.
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