“More often than not, great opportunities look unattractive on the surface. What makes an opportunity great is upside. If the potential upside were explicitly clear, the opportunity would have already been taken.”
This insight is the cornerstone of buying cheap companies. Often, we are walking into a shelter and buying the dog with fleas. Eventually, with a little upkeep, some of these dogs will win the Westminster. If this were clear from the onset – they wouldn’t have been given up for adoption. The profit potential for buying into uncertainty can’t be overstated enough.
“In theory, there’s no difference between theory and practice but in practice there is.”
Becoming a great investor is a practice in persistence. There’s no place to finally arrive at and rejoice at having won. The game of investing is infinite and there are no winners. There are just great practitioners and executioners. All the greats share this same sentiment.
One Question to Consider:
How can I balance the amount of theory and practice in my relationships, business and investing?