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.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
It doesn't make a damned bit of difference who wins the war to someone who's dead.
No person will deny that the highest degree of attainable accuracy is an object to be desired, and it is generally found that the last advances towards precision require a greater devotion of time, labour, and expense, than those which precede them.
One of the basic causes for all the trouble in the world today is that people talk too much and think too little. They act impulsively without thinking. I always try to think before I talk.
Look at the weaknesses of others with compassion, not accusation. It's not what they're not doing or should be doing that's the issue. The issue is your own chosen response to the situation and what you should be doing. If you start to think the problem is "out there," stop yourself. That thought is the problem.
All day long and all night through, One thing only must I do: Quench my pride and cool my blood, Lest I perish in the flood.
Silence. All human unhappiness comes from not knowing how to stay quietly in a room.
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