Title - Warren Buffett’s “20 Punches” approach to investing Tags - investing optimisation personalfinance
“You’d get very rich,” he said, “if you thought of yourself as having a card with only twenty punches in a lifetime, and every financial decision used up one punch. You’d resist the temptation to dabble. You’d make more good decisions and you’d make more big decisions.”
He also ran his life this way - with as little flitting as possible: same house and wife for 50 years, no desire to buy and sell real estate, no jumping from city to city, no jumping from career to career.
The author of his biography said that this was a reflection of Buffetts confidence and habitual nature - but was also a tendency to let things compound and the wisdom of interia.
It remind me of the idea that it’s better to take big leaps than small incremental steps because it often takes the same investment of time, energy and capital to get 2x the return as it does to get 1000x the return.
By being very deliberate about where you invest your resources, knowng that you can only make 20 decisions in a lifetime, you force yourself to invest more wisely.
[#schroeder2009thesnowball]: Alice Schroeder (2009): The Snowball: Warren Buffett and the Business of Life, Bloomsbury Paperbacks.
[#abraham2000gettingeverythingyoucan]: Jay Abraham (2000): Getting Everything You Can Out Of All You’ve Got, Truman Talley Books.