At Berkshire Hathaway’s 2013 shareholders’ meeting, Warren Buffett said, “I’ve owned 400 to 500 companies’ stocks in my lifetime, but only about 10 of them made the most money.” His lifelong friend and investment partner, Charlie Munger, added, “With the exception of some of Berkshire Hathaway’s best investment practices, long-term performance is near-average.” Many people know Warren Buffett’s return on investment better than his mistakes or failures. It’s because of those 10 companies that he succeeded in investing. If there is a positive, there must be a negative. It’s better to prepare a realistic alternative in case you fail than to try to avoid failing. Humans are probabilistic beings. - Joseph’s “just my thoughts”
In a rapidly evolving technological market, companies thrive not by producing durable, long-lasting products but by continuously innovating new models. If car manufacturers create vehicles so robust that customers drive them for over 30 or 40 years, those companies risk failure. Therefore, product cycles are crucial in manufacturing: if they are too short, trust is lost; if they are too long, bankruptcy follows. Nevertheless, newcomers often aim to make them more robust. - Joseph’s “just my thoughts”