For decades, Warren Buffett and Charlie Munger have been recognised for their wise counsel.
As a result, their opinions and statements have become legendary in the financial and business community.
A less well-known Buffett quotation is his Noah rule, which states: Predicting rain doesn’t count, building arks does.
Buffett only mentioned it once. In Berkshire Hathaway’s 2001 annual report.
2001 was a bad year for Berkshire Hathaway. Buffett admitted to making blunders that year: foreseeing risks but failing to mitigate them.
As a result, Buffett said he had “violated the Noah rule: Predicting rain doesn’t count; constructing arks does.”
He saw the dangers but did nothing to avoid them.
It’s one thing to see possibilities at all times, it’s quite another to turn those possibilities into income.
It’s always good to come up with brilliant ideas, but it’s quite another to put them into action.
One thing I’ve learned through mentoring is that everyone makes mistakes. Even Buffett and Munger make mistakes.
We foresee the rain but are poor at building arks.
It makes no real difference how much rain you predict, if you do not have a strong ark and do not use it when the time comes, your predictions will be considered useless.
Get out there and build.