Maintaining even a small annual profit is advantageous in investing. Survival remains the most critical factor in business. People have sought the secret to Warren Buffett’s success, which is the power of compounding, but they overlook the real key: he has invested consistently for 75 years without pause. You can indeed succeed in your business endeavors through sheer survival; conversely, you cannot survive solely because of your success. Survival is only achievable if you have the strength to keep going, even with minimal returns. To do this, you must do what you love. Invest in stocks you like, and continue investing even if it is volatile. Next, you need to secure a “margin of safety.” Even a small margin ratio is crucial because a business can’t survive without margins. Frugal spending, flexible thinking, loose schedules—anything that helps during tough times—can all contribute to building a margin of safety. - Joseph’s “just my thoughts”
Credit not only reduces costs and expenses, but it also boosts revenues; none of the economic resources compares to this. According to World Bank senior researchers Stephen Knack and Philip Keefer, a 10% increase in the confidence index would lead to an average annual economic growth rate increase of 0.8%. Individuals who lack trust and only seek financial gain are more likely to be ruined by money. While credit is an abstract concept, we must not forget that it remains one of the few valuable assets influencing our lives. - Joseph’s “just my thoughts”