…is to do nothing. This applies to having self-control and delayed gratification when seeing a new iPhone release come out (iPhone X, anyone?). This applies politicians who see a problem, want to “fix” it, and cause more problems (inadvertently or intentionally).
Most of all (well, to me, since I’m JeeMoney), it applies to investing. When you see the market climb to new highs over a year, and you are sitting on a pile of cash which is earning nothing (and losing nothing, too), it can be hard to not jump in. However, home-gamer investors, what some on Wall Street call “dumb money”, usually pile into a bull market at the end precisely because of this reason.
Mohnish Pabrai usually says that there’s nothing wrong in shamelessly cloning ideas. He is right. Buffett is sitting on a huge hoard of cash, and while he has been investing a little bit, here and there, he is waiting for something.
I can tell you what he is waiting for. A bargain. He doesn’t see any right now. So he is doing nothing.
I’m in good company.