– Warren Buffett, 1987 Berkshire Hathaway Annual Letter
Change, Cash and Balance
I have always understood that the world changes a lot. Just because you’re doing well now doesn’t mean you should be set in your ways. It’s my habit that I am very careful with my cash flow. That I means I have the extra capital to get into another industry whenever I want to. Cash flow is the most important thing. I have this principle: in the development phase, don’t forget about stability. When there’s stability, don’t forget about development. Such a balance is very important.
Gell-Mann Amenesia Effect
Entry Point
Scientific Understanding
Having a scientific understanding of the world is fundamentally about how you judge which information to trust.
Fundamentals vs Expectations
Curiosity
People who are curious are going to be better investors and better stewards of others’ money. If there’s no curiosity, you’re basically doing something that’s already been done by someone else.
Successive Approximations
A scientist has a healthy skepticism, suspended judgement, and disciplined imagination…the scientist explains the world by successive approximations.