“An investor should act as though he had a lifetime decision card with just twenty punches on it.” _Warren Buffett
All decisions are not equal. There are “choice decisions” (Do I order baked fish and veggies or a cheeseburger and fries, wear jeans or dress slacks, watch a movie or go for a walk, etc.) and then there are “directional decisions”.
Directional decisions are those decisions we make that set the trajectory of our life and influence all the other decisions we will make.
The important thing to remember is that our “lifetime decision card” only allows for a few directional decisions and once made, like a used up punch card, set a permanent direction that will have to be navigated no matter what other decisions we make in the future.
Since we only have a few of these directional decisions allotted to us obviously it is very important to make the wisest decision possible. I think Mr. Buffett gives us a clue: Make decisions like an investor.
The vital question that we must answer is, “Am I going to spend my life or am I going to invest my life?” There’s a world of difference between the two.
Spenders think in terms of what they want now; investors think in terms of what they want later and their decision, for good or bad, impacts every other decision they make for the rest of their lives–even decisions like what they eat, wear, drive, live, and what they do with their evenings.
The ONE THING for today:
The best time to begin investing is when you are young. The second best time to begin is today.