“Experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime. A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past.”
– Charlie Munger
PS – I strongly suggest that you read this statement multiple times to understand its real importance. And please do share your thoughts too.
reading searching continuously in hope of opportunities also created havoc in mindspace..ur mind is all the time into financial world & away from real world & real people.
That is true Raghvendra… But as far as average investors are concerned, it can be safely assumed that by using the words 'searching continuously', it is meant that one should atleast stay in touch with businesses one understands. This will eventually help one understand when the markets are mis-pricing the business.
I can relate to this. I bought into a pharma company when there was an incidence of fire reported. Short term thinkers sold into this news. It was clear that the company would have had insurance coverage plus it was not such a big fire. Took my first position. Then after a few months or so another news came of US FDA warning letter. Stock cracked up but there had been continuous promoter buying everyday so that gave confidence and I took another position. Stock has given 400% returns in a year or so. Alas I did not have much courage and could not bet the farm on this single position 🙂 But reading this quote gives courage the next time I see any such opportunity which is bound to come to a patient investor. Thanks for putting this up.