We try not to have many investing 'rules,' but there is one that has served us well: If we decide we were wrong about something, in terms of why we did it, we exit, period.
Interpretation
Recognizing when you're wrong and making a decisive exit is crucial in investing.
This quote by David Einhorn emphasizes the importance of adaptability and decisiveness in the world of investing. It highlights that investors should not be overly bound by rigid rules; instead, they should be willing to acknowledge their mistakes and swiftly pivot away from unprofitable positions. This mindset fosters a more dynamic approach to investing, allowing for better decision-making based on current realities rather than past convictions.
In practice
This quote can be used in a financial seminar to illustrate the importance of recognizing and learning from mistakes in investing.
The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will.
You gotta keep the ball off the fat part of the bat.
Most investors want to do today what they should have done yesterday.
Beside every great success are the seeds of enormous failure. In every failure, there's the opportunity seeds of great success. They're not miles apart. So if they're that close together, and if you're really working, you're always gonna have that likelihood that something's not going to work.
Another qualification of success is that we not only bring harmonious and beneficial results to ourselves, but also share those benefits with others.
My ambition didn't grow out of nowhere. It was planted in me by a community that nurtured me.
...treasure what it means to do a day's work. It's our one and only chance to do something productive today, and it's certainly not available to someone merely because he is the high bidder. A day's work is your chance to do art, to create a gift, to do something that matters. As your work gets better and your art becomes more important, competition for your gifts will increase and you'll discover that you can be choosier about whom you give them to.
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