Warren Buffett, known for his baseball analogies, compares investing to a batter waiting for the right pitch. Unlike the batter, investors face no called strikes and can patiently seek the perfect opportunity. However, it’s important not to let the pursuit of perfection hinder the recognition of good investments. While aiming for home runs, one must also appreciate the value of solid opportunities. Striking a balance between waiting for ideal prospects and seizing worthwhile investments is the key to long-term success.
“One of the things, one of the errors people make in business, and sometimes it can be a huge error, is that they try and measure every deal against the best deal they’ve ever made,” Buffet said 2011 Berkshire Hathaway Annual Meeting. “The goal is not to make a better deal than you’ve ever made before. The goal is to make a satisfactory deal that’s the best deal you can make at the time.”
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© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.