The Daily Buffett

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The Dance of Skill and Chance

July 22nd

This holding has proved extraordinarily profitable thanks to a move by your Chairman that combined luck and skill—110% luck, the balance skill.

Warren Buffett

Investing is an intricate dance between skill, knowledge, and chance. Buffett's deep understanding of businesses, his ability to identify long-term value, and his discipline to stick to his principles have guided his investment decisions. These decisions are not just a roll of the dice, but calculated choices.

Yet, the element of luck is an undeniable reality. The market is a whirlwind of unpredictabilities, full of variables that are simply beyond our control. Many external factors, timing and unforeseen events can significantly influence the outcome of an investment.

Recognizing the role of luck fosters humility. It cautions us against overconfidence and complacency and urges us to remain vigilant and adaptable. It is a gentle reminder that while we can't control everything, we can continue to learn, adapt, and refine our skills. And perhaps, with a dash of luck, we may stumble upon extraordinary success.

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