12 Mar Warren Buffett

“You only have to do a few things right in your life as long as you don’t do too many things wrong.”

On investing: “Rule number one: Never lose money. Rule number two: never forget rule number one.”

In financial markets today, investors are overly focused on the return they can realize on their investments. That might be the wrong approach, especially if we do that long enough. For example, a $20 return on a $100 investment is very attractive. However, as good times can only exist if there are bad times as well (good is a relative concept), best to focus on the bigger of the two numbers; otherwise at some point we might not have anything to invest.

However, when financial markets are in panic mode and the focus is on keeping the bigger number safe, then it’s best to shop for great returns.