Do you fix weaknesses or develop your strenghts

I’ve been pondering this question for quite a while:

Andy Rachleff told me that one of his best business lessons is that you learn far more from success than from failure, and that you should use success as a compass. Drive hard in the direction of what works rather than trying to shore up weaknesses. If something is working, more of that thing, or a better version is likely to work too. A better version of a failure is likely still going to fail.

Lessons Learned After Almost a Year

On changing your mind, spending and status quo

A: I make no excuses or apologies for changing my mind. The world around me changes, for one thing, but also I am continuously learning. I have never finished my education and probably never will….

spending beyond income means borrowing, and all of economic history proves that too much borrowing is the core of economic disasters and chaos.

But there is a tendency — as I’ve suggested in answering all your questions — for people to expect the status quo either to last indefinitely or to provide advance signals for shifting strategies. The world does not work like that. Surprise and shock are endemic to the system, and people should always arrange their affairs to that they will survive such events. They will end up richer that way than [by] focusing all the time on getting rich.

A (Long) Chat with Peter L. Bernstein

What to teach your kids

I would teach them Pascal’s Law: the consequences of decisions and choices should dominate the probabilities of outcomes. And I would also teach them about Leibniz’s warning that models work, but only for the most part. I would remind them of what the man who trained me in investing taught me: Risk-taking is an inevitable ingredient in investing, and in life, but never take a risk you do not have to take.

A long chat with Peter I Bernstein