The Daily Buffett

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The Bridge to Growth

September 9th

On the margin of safety, which means, don't try and drive a 9,800-pound truck over a bridge that says it's, you know, capacity: 10,000 pounds. But go down the road a little bit and find one that says, capacity: 15,000 pounds.

Warren Buffett

A well-grounded investor doesn't strive to barely weather the storm of their decisions; they seek paths that let them flourish with room for unforeseen circumstances.

This isn't to say one should always play it safe. The essence of investing lies in the balance between calculated risk and expected reward. However, leaning too heavily on the edge of risk can lead to preventable failure.

Yet, think about this from another angle. Is the strength of our investments only about the risks we face, or could it also be about the opportunities we might be missing? In our caution, might we be restricting our own potential for growth?

In investing, as in life, identifying the sturdy bridge - the strong investment - that can bear more than we initially plan to carry may not just shield us from potential loss. It could also create room for unexpected growth. This is not only about ensuring we survive our financial decisions, but it's about positioning ourselves in a place where we can thrive.

Investing, then, becomes a balance between security and opportunity. It's about finding the bridge that not only carries our existing load but also has the capacity to carry our future aspirations.

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Copyright © 2023 by Scott Sansovich