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”
Addiction arises from the allure of immediate rewards. These instant gratifications clearly activate our brains, attracting those who favor such rewards. They play a critical role in shaping human activities and contributing to addiction. For example, if a student struggling to focus notices immediate improvements after studying for just a little while, they are likely to keep studying diligently. Similarly, if stock investors can confirm the traded stock price a month or a year later during their transactions, they may lose interest in trading. The timing of rewards greatly influences human interactions and societal structures. - Joseph’s “just my thoughts”