Skip to content

Warren Buffett said, “The more you learn, the more you earn.” True or not?

November 26, 2017

It is true, only if you learn the stuff that Warren teaches as is, it is not true if you learn the stuff that many self-appointed “experts” teach while you think it “sounds” as good as the stuff that Warren teaches. Many times it does it looks as good – but it doesn’t work as good nine times out of ten times. So, the answer to wealth accumulation is, “Learn how to make decisions that work.” It is not “rain or shine,” that simple. It’s confusing!

How do you make decisions that work? You start by making a decision to learn how to make decisions that work by reading only one book: Dr. Daniel Kahneman’s book Thinking: Fast and Slow. Read the book only ones but take notes about S1 and S2. Read all the sections on System 1 and System 2 five to ten times. Repeat reading these parts only until you have convinced yourself that if Daniel asked you to describe them in a conference you could do it to his satisfaction. You see, learning how to make decisions that work is not an ordinary learning. It is not a PhD learning. It is learning how to understand System 1 in order to be able to – ignore it in favour of implementing System 2!

By now, you should be able to probably understand that if I thought you guys a workshop on how to make decisions that work, most participants would drop out frustrated. Why? Because you’d find it difficult to delete Logic from the process of making decisions that work. The thing is that to make ten decisions that work ten time out of ten is not even desirable (never look for a coin with only one side). It’s impossible in most system but in Kahneman’s system you don’t even try it, your goal is to make ten decisions that work nine out of ten times. The king of the variance formula is Relativity and most investors are Newtonian! Sad.

My friend, if you really understand my posting above and could explain it well to a group of PhD’s –  people who are usually not smart about extraordinary ideas –  you are ready to invest and succeed nine out of ten tries!

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: