The Daily Buffett

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The Road Less Applauded

October 3rd

Instead, he takes those coupons from his low-return bond and—if inclined to reinvest—looks for the highest return with safety currently available. Good money is not thrown after bad.

Warren Buffett

Buffett suggests that the wisest investment decisions are not the ones that gather applause or immediate gain. These decisions are often the more calculated, careful choices that may not provoke direct enthusiasm.

The "good money" mentioned in the quote symbolizes the risky charm of investments that are not performing well. Decisions driven by the desire for quick profit can lead us off course, causing us to favor temporary success over long-term stability.

Conversely, the "highest return with safety" stands for the slow, steady progress of a well-planned investment. Such choices might not generate immediate excitement or attention. But in the long run, they yield consistent, reliable returns. These are the unsung, often overlooked decisions that form the foundation of a robust investment portfolio.

Let us put more worth in long-term stability than in fleeting success. For in the world of investing, as in life, the quiet, consistent effort often reaps the most rewards.

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