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”
McDonald’s main menu featured barbecue, and the hamburger was one of 27 items. McDonald’s provided a system for customers to order directly, pick up a hamburger after a while, and serve the food on a plate rather than in a wrapper. When they faced stagnant business, they looked back at the cause and found that 80% of sales came from hamburgers, French fries, and beverages. It took a long time to reduce the menu and switch from plates to wrappers. The past holds back the present and the future. Poor success also involves the burdens of the past. - Joseph’s “just my thoughts”