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Important & Knowable

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Is it important?

If it’s not important then it can be discarded. But if it is important, is it knowable?

‘In Seeking Wisdom’, the author Peter Bevelin quotes Warren Buffett:

There are two questions you ask yourself as you look at the decision you’ll make.

A) is it knowable?

B) is it important?

If it is not knowable, as you know there are all kinds of things that are important but not knowable, we forget about those. And if it’s unimportant, whether it’s knowable or not, it won’t make any difference. We don’t care. But there are enough things that are knowable and important that we focus on those things. And everything else, we forget about.

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Jakub Smrček
Jakub Smrček

Written by Jakub Smrček

Qualitative investment analysis is about understanding a business before taking out your calculator. This blog teaches you how to do it for common stocks.

Business Modeling
Business Modeling

Published in Business Modeling

Models allowing you to Read a Business Like a Book!