The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.
Interpretation
We should exercise more caution in our own actions when we observe a lack of caution in others.
Warren Buffett's quote emphasizes the importance of prudence and careful decision-making, especially in a world where others may act recklessly. It suggests that the behavior of those around us can serve as a reminder to be more deliberate and thoughtful in our own choices, ensuring that we navigate our own affairs with greater care.
In practice
This quote can be shared during a business meeting to emphasize the need for careful planning.
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.
My understanding of racial discrimination as a child was highly distorted because the most prominent man in Archery was an African-American bishop. When he came home from up north, where he was in charge of A.M.E. churches in five states, it was front-page news. He was the most successful man in my life.
No man ever sank under the burden of the day. It is when tomorrow's burden is added to the burden of today that the weight is more than a man can bear.
Danger lurks when people are dissociated and detached from their own story or feelings.
Mistakes are the portals of discovery.
That was what her parents did not understand—and had never understood—about stories. Liza told herself storied as though she was weaving and knotting an endless rope. Then, no matter how dark or terrible the pit she found herself in, she could pull herself out, inch by inch and hand over hand, on the long rope of stories.
I can UNDERSTAND pessimism, but I don't BELIEVE in it. It's not simply a matter of faith, but of historical EVIDENCE. Not overwhelming evidence, just enough to give HOPE, because for hope we don't need certainty, only POSSIBILITY.
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