Rearview Mirror Is Clearer Than the Windshield Slide

Picture Conceptualises that Rearview Mirror is Clearer than the Windshield

Importance of Saying No to Investment Opportunities

Slide Depicts Importance of Saying No to Investment Opportunities

Dancing In and Out of Investments Quote Slide

Warren Buffett's Quote Advising Not to Dance In and Out of Investments

Saying No to Investment Opportunities

"It is more important to say "no" to an opportunity, than say "yes."

Warren Buffett

While investing, especially during evaluation stocks a value investor will confront with a number of opportunities seemingly attractive and often tempting. Warren Buffett is advocating a bias towards rejection – saying no, rather than saying yes.

This rule is similar to the rule for discarding junk at homes and offices during the process of cleaning. We will come across a number of items where our minds tell us to keep the items for potential future use. If we follow the advice, we will accumulate unwanted junk. The rule to junk is simple and harsh – if in doubt - discard! The rule is advocating a positive bias for junking.

As with the rule for discarding, Warren Buffet is advocating a positive bias towards rejecting – saying “no” to an opportunity than saying “yes”. The logic behind this advice is far better to err on the side of caution than otherwise.

Picture Conceptualises Bias Towards Saying No to Opportunities