Reflections

• True satisfaction comes from advancement and progress, not comparisons.
• What I don’t see is what will cost me money.
• Stupid in small things, stupid in big things.
• Stay lean even if you can afford to get fat.
• The most powerful force I have is the words I use to describe my situation.
• It is more important to ensure survival under negative outcomes than it is to predict maximum returns under favorable ones. (Protect from loss > maximize gain)
• Plans are useless, but planning is indispensable. -Eisenhower
• Over time, your net worth is more about the size of your losses than the size of your winners.
• Mistakes come from unexamined assumptions.
• Optimism is the enemy of the rational investor.

All my problems started out as a good idea and all those “good” ideas were emotionally justifiable at the time. Not only that, my current financial condition represents my very best “thinking.” Yours does too. (Location 99)

Here it is on a bumper sticker: Emotions and intellect work inversely. When emotions go up, intellect goes down. Optimism is a deadly emotion in the business world. Warren Buffett said it best: “Optimism is the enemy of the rational investor.” (Location 108)

There is no such thing as a natural business owner. Successful business owners and entrepreneurs are not born with an innate set of skills that produce business excellence and success. Great business owners work hard, practice, study, test, think, correct, and practice some more. None are infallible or perfect, but all are committed to excellence and mastery of the game. (Location 131)

Attempting to win the game of business by trial and error is about the stupidest way to learn anything. Trial and error is a “Pin the Tail on the Donkey” strategy that is painful, slow, and expensive, and it rarely succeeds. (Location 134)