The Daily Buffett

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Ignorance is the Enemy

September 7th

Risk comes from not knowing what you are doing.

Warren Buffett

In the realm of investing, it's not the volatility of the stock market or the unpredictability of global events that pose the greatest peril; instead, it's navigating this intricate world without a compass of understanding.

The responsibility of an investor isn’t just about making predictions. It centers around comprehension. The comprehension of companies we invest in, the financial markets, the global economy, and of course, ourselves. This realization doesn't come on a silver platter. It demands due diligence, incessant learning, the boldness to probe, and humility to recognize the areas where our understanding falls short.

Instead of attempting to exterminate risk—an endeavor doomed to fail—let's concentrate on mitigating it through knowledge, learning, and self-awareness. We're not battling an external beast here, but an internal one—ignorance. Our primary aim should be to minimize decisions made in ignorance, thus making risk something we can comprehend and manage. So always remember, the less we learn, the more we risk.

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