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What the wise do in the beginning, fools do in the end. – Warren Buffett
This quote taught me that set up goal at beginning no matter of personal finance or personal development. Each people had different kinds of value and ability. Some people’s goal and ability are different with ours. It will very benefit to take time to think Three most important questions as Simon Sinek said. First one is WHAT, then HOW, then WHY. I will write down in another blog post.
This will be for me:
Set up goal—Do you research and made goals into weekly, monthly, yearly goal—ground hard work.
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Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard. – Warren Buffett
No matter of property and share and index fund, it will fluctuate daily. For property, it will not so obvious and normally will lag behind share market 6 month. Intelligent investor book described how Mr Market response. Mr market teased you each day about different price. I found that it will impossible to do day trade for me. I belong to passive investing and need ignore the Mr Market fluctuate. For example, choose Warren as your fund manager and buy his B class share and closed door and put fait on him.
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If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy. – Warren Buffett
Buffett discussed a metaphorical figure called “Mr. Market” and indicated that a skilled investor should have knowledge that is superior to that of “Mr. Market”.
Indeed, if you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game. As they say in poker, “If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”
For ordinary people like me, it sill super hard for gain knowledge as professional investors and if I did not have rich knowledge know how to pick up individual share, it seemed quite silly for me to become patsy to pick up shares. After burning quite few times for individual share trading, I will never do the things that I am not good at.
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When you combine ignorance and leverage, you get some pretty interesting results. – Warren Buffett
I learn two rules from this quote.
Rules one and never leverage your home loan to invest share market.
Rules two only invest the money which you can afford to lose and take long term instead of day trade.
Financial leverage is always shown as a ratio between the total assets and equity. Total assets refer to the sum of the debt or loan amount and your equity or capital. The equity or capital is basically the cash you deposit into your brokerage account. This is the formula:
Financial Leverage = Total Assets / Equity = (Equity + Debt) / Equity
Some brokers allow traders to use a leverage of up to 100:1 or even more. At least in the forex markets. In this instance, this means that you can leverage your trading position up to 100 times.
Let’s say you have $2,000; this is your equity or capital. If your broker allowed leverage of 100:1, you can expose yourself to a position of $200,000 in the market ($2,000 x 100), with just $2,000. Your broker will effectively allow you to borrow $198,000 for the position. Any profit or loss will be magnified by 100 times.
This is how leverage work and pretty scare and this is maybe about what Warren talk about interesting result. You can either gain a lot or lost everything and in high debt.
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Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future. – Warren Buffett
This quote taught me that ignore market forecasts. Hand in hand with Buffett’s long-term outlook goes his disdain for short-term market forecasts. No one, he says, can predict short-term market movements with any degree of accuracy. I used to remember that Elizabeth Holmes. The investors lose million for her Theranos company. Her company collapsed. Is Wall street forecaster right? NO. Is investors know about the future? No
She was “the world’s youngest self-made female billionaire”, trumpeted Forbes magazine. The “next Steve Jobs”, said Inc, another business magazine that put her on the cover.
In 2014, Elizabeth Holmes, then 30 years old, was on top of the world. A Stanford University drop-out, she had founded a company valued at $9bn (£6.5bn) for supposedly bringing about a revolution in diagnosing disease.
With a few drops of blood, Theranos promised that its Edison test could detect conditions such as cancer and diabetes quickly without the hassle of needles.
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In the world of business, the people who are most successful are those who are doing what they love. – Warren Buffett
This quote taught me that I need find something I am passion for it. Sometimes, I found that I can extend my interests in different areas in my spare time. It is hard for ordinary people to find something very interesting at beginning. They can focus on all their energy into it at first time. It is somehow explore it with life. It will so lucky for someone to find something which they can contributed their life on it. Never lost passion.
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In the business world, the rearview mirror is always clearer than the windshield. – Warren Buffett
This quote means that the “rear view mirror” (the past) is always clearer than “the windshield” (the future) for an investor. Past is best indication to find people’s performance and ability. Warren has already use more than 60 years to prove that.
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I do know that when I am 60, I should be attempting to achieve different personal goals than those which had priority at age 20. – Warren Buffett
In different life stage, there will be different kinds of personal goal. It will benefit for me to set up different financial goal in life stage. For youth, it will have high risks and try different kinds of business idea. It will have time to explore and cover risks. But when you are at the middle age, it will involve less high risk business.
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You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life. – Warren Buffett
Time management is big factor for very effective people. I used to say yes to a lot of things. Now, I am on the journey to learn to say No. Set boundary for things which occupied too much time with low efficiency.
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I learned to go into business only with people whom I like, trust, and admire. – Warren Buffett
It is quite hard for ordinary people to find mentor like Warren. But he put honesty and integrity as high value of people. I think that it is so true. The first value is integrity no matter how smart and intelligent of them. If they are integrity, you will not be hurt and cheated at least. Knowledge and intelligence are another part of that. Internet open windows for unlimited amazing teacher round the world. If you want to learn, you can learn most of things from Internet these days.
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