This norm of the entrepreneur points to the importance of predicting events in advance to capitalize on opportunities.
The renowned American investor, Warren Buffettis one of the most successful businessmen of recent times and, thanks to that, he is also famous for his advice for avoid business failure.
Within this framework, there are already several principles made public by Buffett that have already become known and have been applied by many investors, but there is one that is fundamental to his vision of the risks preventionthat It doesn’t have as much diffusion.
Warren Buffett
NA
Warren Buffett’s Secret Rule
It is the so-called “Noah’s Rule”. This principle applied by the billionaire is based on the biblical figure of Noah and his ark, and aims to provide knowledge to avoid risks in both investments and leadership.
This principle, according to Buffett, allows “predict rain” to those who apply it accurately. In fact, the phrase “predicting the rain doesn’t count, building an ark does” is one of the lesser-known billionaire quotes, which can be found in the Berkshire Hathaway 2001 annual report of shareholders.
Warren Buffett 3.jpg
With this phrase and this rule, Buffett wanted to explain a significant error that was latent that year and that materialized with the dramatic events of September 11. The investor had foreseen numerous events in the market before that fateful day. However, he failed to put his thoughts into actionthus violating his own Noah Rule, since the rain came as expected, but he had forgotten to build an ark.
This rule aims to recognize the importance of being prepared for inevitable business and market downturns. They try that people anticipate crises and therefore invites them to focus on building a solid “ark”in order to position itself and capitalize on opportunities.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
