16/07/2021
High Returns With Low Risk is the Key
“Risk comes from not knowing what you are doing.”
The advice here is obvious but often forgotten, particularly after investors have had some success.
The temptation to believe that success in one area you know well allows you to easily analyze another is much greater once you’ve had some good returns, but should be resisted with vigor.
Buffett himself has kept out of the technology sector for the most part, given his lack of knowledge of the sector. Buffett said it best:
“Never invest in a business you cannot understand.”
