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”
The philosopher Aristotle stated, “ We are what we repeatedly do . Excellence, then, is not an act, but a habit .” If the repetition of an action is a ‘habit,’ then this ‘habit’ emphasizes the connection between the actions. For instance, if you consistently drink coffee after a meal, it suggests that the preceding ‘meal’ holds more significance than the coffee. In contrast, the connection of coffee following that meal is essential. Even if you cannot drink coffee, you can survive; however, if you cannot eat, your survival is at risk. Meals are important, and they take precedence over coffee. In other words, for an action to be repeated, the persistence and repeatability vary based on the priority of the actions that occur before and after the habit. - Joseph’s “just my thoughts”