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”
When farming, it doesn’t mean it doesn’t rain, but if it rains just twice a year, it ruins the farm. If it rains heavily, it causes a flood; if it doesn’t rain for a long time, it leads to drought. Regularity is a crucial habit that enriches our lives. So is money. Money that comes in regularly every month is more valuable than money that arrives all at once. A small but consistent action taken every day can radically change your life. However, the reason this is hard for us is that the effect must accumulate over a certain period before you can feel a significant difference. Patience accomplishes very valuable things that money cannot achieve. - Joseph’s “just my thoughts”