# 3) “Only when the tide goes out do you discover who’s been swimming naked.”
If stocks went down 25%, how would that impact you?
What about if you lost your primary source of income?
We can’t act as if good times will last forever. Eventually, the tide will go out.
When it does, how prepared are you?
# 4) “Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.”
It’s easy to believe that more money is the thing that will make you happy.
But if you’re miserable now–you’ll just be a miserable rich person.
We now know that it’s not success that leads to happiness but happiness that leads to success.
# 5) “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”
It’s important to make decisions within your circle of competence. Once you start adding complexity, you add risk.
Selecting individual stocks isn’t in my circle of competence–so I stick with index funds.
# 6) “It is not necessary to do extraordinary things to get extraordinary results.”
Success comes from doing a lot of simple things right. The key is DOING those simple things.