{"id":53,"date":"2021-09-06T23:54:00","date_gmt":"2021-09-06T15:54:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=53"},"modified":"2025-07-19T14:13:06","modified_gmt":"2025-07-19T06:13:06","slug":"chance-of-making-mistakes","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/","title":{"rendered":"Invest success depends on less chance of making mistakes"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#Risk_depends_on_the_probability_of_making_a_mistake\" >Risk depends on the probability of making a mistake<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#Do_a_few_things_right_in_your_life_and_you_can_succeed\" >Do a few things right in your life and you can succeed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#Failure_is_not_worth_trying\" >Failure is not worth trying<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#Dont_play_fire\" >Don&#8217;t play fire<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#How_to_avoid_failure\" >How to avoid failure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/#Related_article\" >Related article<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Risk_depends_on_the_probability_of_making_a_mistake\"><\/span><strong>Risk depends on the probability of making a mistake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the definition of risk, I think Buffett\u2019s statement is the most appropriate: <a href=\"https:\/\/buffett.cnbc.com\/video\/1994\/04\/25\/morning-session---1994-berkshire-hathaway-annual-meeting.html\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;the possibility of loss or injury.&#8221;and \u201cRisk comes from not knowing what you\u2019re doing.\u201d&nbsp; (from: BRK Annual Meeting 1994)<\/a><\/p>\n\n\n\n<p>In order to accumulate wealth, you have to take risks; and risk often depends on your chances of making mistakes. But in the process of financial accumulation in a lifetime, we don&#8217;t have many chances to make fatal mistakes. Two or three fatal mistakes may ruin all your life&#8217;s hard work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Do_a_few_things_right_in_your_life_and_you_can_succeed\"><\/span><strong>Do a few things right in your life and you can succeed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Buffett said: &#8220;You only have to do a very few things right in your life so long as you don\u2019t do too many things wrong.&#8221; I have also repeatedly stated in many places that investors can make a fortune as long as they bet on two or three investments in their lifetime. Many successful investment masters have also mentioned similar views. Interested investors can refer to the following blog articles of mine:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/12\/good-companies-are-rare-two-or-three-will-make-you-very-rich-take-texas-instruments-as-an-example\/\">Good companies are rare. Two or three will make you very rich. Take Texas Instruments as an example<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/18\/why-concentrate-investment\/\">Why concentrated investment?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/10\/whether-a-successful-investor-can-be-sustained\/\">Whether a successful investor can be sustained?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Failure_is_not_worth_trying\"><\/span><strong>Failure is not worth trying<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Buffett once said: \u201cWhen people tell me they\u2019ve learned from experience, I tell them the trick is to learn from other people\u2019s experience.\u201d (from: Q&amp;A session with Dartmouth MBA students) Many things in life need and are worth trying, but not failure. We cannot commit ourselves to the pain of trying and failing. After all, it is best not to experience many things ourselves and to learn from the experience of others is the best way. <\/p>\n\n\n\n<p>&#8220;This passage is definitely suitable for investors. Some people are born stubborn gamblers. They obviously have so many warnings and wrong experiences from investors, but they still insist on &#8220;this time is different.&#8221; The mentality is desperate to take a gamble. The result, of course, is to lose the hard-earned money earned through hard work. In severe cases, there are so many people who are bankrupted and destroyed. The end of the game is really unbelievable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Dont_play_fire\"><\/span><strong>Don&#8217;t play fire<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>John Templeton has a famous saying in the investment industry: \u201cThe four most expensive words in the English language are, \u2018This time it\u2019s different.\u2019\u201d He also emphasized: &#8220;The only way to avoid mistakes is not to invest\u2014which is the biggest mistake of all. So&nbsp;forgive yourself&nbsp;for your errors. Don&#8217;t become discouraged, and certainly don&#8217;t try to recoup your losses by taking bigger risks. Instead, turn each mistake into a learning experience.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"How_to_avoid_failure\"><\/span><strong>How to avoid failure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investors should avoid the above shortcomings, there is no other shortcut, only the following two methods:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"177\" height=\"119\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/09\/RODNAE-Productions-1600x1200-2.jpg\" alt=\"mistake\" class=\"wp-image-13883\"\/><figcaption class=\"wp-element-caption\">credit: RODNAE Productions<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Face yourself honestly, and have the courage to admit your mistakes: This is very difficult, because people have inertia; paranoia is one of the fundamental reasons for investment failure. The older you are, the more difficult it is; even if you are willing, the higher the cost or price, the worse the effect.<\/li>\n\n\n\n<li>Continue to receive new knowledge: This is also very difficult. For example, according to research, human beings will not explore or listen to new music genres after they are twenty-five years old. After most people leave school, they hardly take the initiative to absorb new knowledge, which is fatal.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_article\"><\/span>Related article<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/17\/risk-vs-uncertainty\/\">Risk vs Uncertainty<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/18\/learning-to-avoid-failure\/\">Learning to avoid failure<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/16\/important-and-knowable-info\/\" target=\"_blank\" rel=\"noreferrer noopener\">Information investors need should be important and knowable<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/01\/focus-company-performance\/\">Focus on company performance rather than market<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/05\/should-not-trust-forecasts\/\">Investors should not trust forecasts<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/10\/game-of-chance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing is a game of chance<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/16\/vaguely-right-than-wrong\/\">I would rather be vaguely right than precisely wrong<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/16\/risks-investors-should-face\/\">What are the risks investors should face up to?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/02\/investment-uncertainty\/\" target=\"_blank\" rel=\"noreferrer noopener\">The uncertainty in investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/10\/investment-vs-speculation\/\">Investment vs speculation<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/28\/factor-luck\/\">How big a factor does luck play in investment success?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/06\/chance-of-making-mistakes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Invest success depends on less chance of making mistakes<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/mistakes-of-omission-and-mistakes-of-commission\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mistakes of omission and mistakes of commission<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/27\/survivorship-bias\/\" target=\"_blank\" rel=\"noreferrer noopener\">People believe successful investors are survivorship bias cannot succeed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/10\/sustained-investor\/\">A investor can be sustained or not? how to verify?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/19\/investing-has-no-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing has no formulas, but there are ways to invest successfully<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/28\/factor-luck\/\">How big a factor does luck play in investment success?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/19\/successful-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\">The main investment principles of successful investors are similar<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Invest success depends on less chance of making mistakes, For the definition of risk, I think Buffett\u2019s statement is the most appropriate: &#8220;the possibility of loss or injury.&#8221; (from: BRK Annual Meeting 1994) and \u201cRisk comes from not knowing what you\u2019re doing.\u201d\u00a0<\/p>\n","protected":false},"author":1,"featured_media":13883,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,15,13,8,17,18,20,779,11],"tags":[],"class_list":["post-53","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-concept","category-charlie-munger","category-investing-behavior","category-investing-books","category-investing-psychology","category-investing-strategy","category-john-templeton","category-risks","category-buffett"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/53","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":35,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"predecessor-version":[{"id":37397,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/53\/revisions\/37397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/13883"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}