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.
I was lucky. I grew up knowing that hard work and smart work has a greater impact on results than being passionate about something.
Achievement is talent plus preparation. The problem with this view is that the closer psychologists look at the careers of the gifted, the smaller the role innate talent seems to play and the bigger the role preparation seems to play.
Real success is finding your lifework in the work that you love.
I feel that my fans have cultivated my talent and they continue to nurture me.
The key to success is letting the relationships in your life grow to the highest levels they possibly can . . . not putting yourself first in life and remembering that the more you give away, the more you have.
The world does not pay men for that which they “know”. It pays them for what they do, or induce others to do.
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