Over the next few blogs, I will share some of my favorite quotes and lessons I learned from the book Snowball: Warren Buffett and the Business of Life.
During his youth, Warren and his friends would go to the horse track. They found they could make money gathering hastily discarded tickets that did not win 1st prize, but still paid out a small sum. One of the early lessons he learned at the track was patience. "When a loss occurs, you don't have to make it back the way you lose it." In other words, you don't have to win the next race or even win a horse race. One could earn back their money through a variety of means.
It reminded me of other losses and failures people experience. Losses at a casino, in the stock market, during the swim or bike segments of a triathlon, or during one's 20s, 30s, or 40s. Buffett goes on to say, "Be long-term greedy, not short-term greedy." When I act hastily or ruminate on the past it only dampens my present state and future. I try to remember what's important to me and that a lot can happen over the course of a marathon or a triathlon or life. I may lose a few minutes to my competitors during the bike, but I can gain it back during the run. I may lose out on a promotion, but gain enrichment in my marriage.
Warren also encourages people to not "fixate on what you paid for a stock." What's done is done. "In the short term the market is a voting machine. In the long run it's a weighing machine." I see his advice as a call to not worry about what the news media says or what is popular. Stocks and fashion change from day to day. He encourages people to think for themselves. "Do what makes sense, not necessarily what has been done in the past." I try to remember that I have a lot of knowledge from my past experiences and don't have to defer to others.
In regards to money management, Warren reminds people that "A bird in the hand (now) is worth two in the bush (future)." Be careful where you spend it. If I go out too fast in a race, burning matches, I won't have any for the finish. Likewise, if I invest a little in relationships now, they will grow stronger and pay huge dividends in the future.
In the end, be patient and remember that you are the navigator of your life. "Mister Market is your servant not your Master."
Warren also encourages people to not "fixate on what you paid for a stock." What's done is done. "In the short term the market is a voting machine. In the long run it's a weighing machine." I see his advice as a call to not worry about what the news media says or what is popular. Stocks and fashion change from day to day. He encourages people to think for themselves. "Do what makes sense, not necessarily what has been done in the past." I try to remember that I have a lot of knowledge from my past experiences and don't have to defer to others.
In regards to money management, Warren reminds people that "A bird in the hand (now) is worth two in the bush (future)." Be careful where you spend it. If I go out too fast in a race, burning matches, I won't have any for the finish. Likewise, if I invest a little in relationships now, they will grow stronger and pay huge dividends in the future.
In the end, be patient and remember that you are the navigator of your life. "Mister Market is your servant not your Master."
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