"You’re looking for a mispriced gamble. That’s what investing is. And you have to know, enough to know, whether the gamble is mispriced. That’s value investing."
-- Charlie Munger
Below notes are taken while watching youtube videos.
From the day he started Microsoft he insisted on always having enough cash in the bank to keep the company alive for 12 months with no revenue coming in. In 1995 he was asked by Charlie Rose why he kept so much cash on hand. Things change so fast in technology that next year’s business wasn’t guaranteed, he said, “Including Microsoft’s.” In 2007 he reflected: I was always worried because people who worked for me were older than me and had kids, and I always thought, ‘What if we don’t get paid, will I be able to meet the payroll?’” Optimism and pessimism can coexist. If you look hard enough you’ll see them next to each other in virtually every successful company and successful career. They seem like opposites, but they work together to keep everything in balance. What Gates seems to get is that you can only be an optimist in the long run if you’re pessimistic enough to survive the short run. The best way for most people to apply that is: Save like a pessimist, invest like an optimist.
In any business deals you can't get caught up emotionally and remember as there's always another deal. So good business men walk away from deals all the time.
At certain times, things can be overpriced at that time you got to know, what's in the box and what's out of the box. Is it something you going regret later or is it something if you wait or you can get it somewhere else as well.