I would rather be vaguely right than precisely wrong

Simply Right is important than wrong

Warren Buffett saying quoted in The Warren Buffett Way by Robert G. Hagstrom, Wiley, November 4, 1994. Buffett admits, for the simple reason that calculating future capital expenditures often requires rough estimates “I would rather be vaguely right than precisely wrong.” quoting the famous saying of the economist John Maynard Keynes “It is better to be roughly correct than to be precise.” To compare intrinsic value as an estimate value, it is really appropriate to use it here now.

Can be judged by common sense

During Berkshire Hathaway Annual Meeting 2007:

  • Buffett (2007) said “If we see someone who weighs 300 or 320 pounds, it doesn’t matter — we know they’re fat. We look for fat businesses.”
  • Charlie Munger (2007) pointed out “When you’re trying to determine intrinsic value and margin of safety, there’s no one easy method that can simply be mechanically applied by a computer that will make someone who pushes the buttons rich. You have to apply a lot of models. I don’t think you can become a great investor rapidly, no more than you can become a bone-tumor pathologist quickly.”

Fingers and toes investing

In 1996 Berkshire Hathaway annual meeting:

  • Charlie Munger: “We have such a “fingers and toes” style around here. Warren often talks about these discounted cash flows, but I ’ ve never seen him do one . . .”
  • Warren Buffett:That’s true. It’s sort of automatic. If you have to actually do it with pencil and paper, it ’ s too close to think about. It ought to just kind of scream at you that you ’ ve got this huge margin of safety.

Why?

Before clarifying the principles and general direction, or deciding on the wrong direction, doing things with a head cover desperately, no matter how serious it is, it’s in vain ─── “After all, things that are not worth doing, no matter how good they are, it’s useless. “. The basic thumb of rule of our life, everyone with basic common sense knows that when used in investment, there is no difference, or even more serious, because you may lose all your hard-earned money; it may be because of this. Cause your family bankruptcy and you will never be able to turn over.

Like Buffett said: “That which is not worth doing at all is not worth doing well.”

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