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| Dividend Tips |
Warren
Buffett employs probability analysis in his investment
activities. As his business practice
developed over time so did his approach to probability analysis. If we follow his path, it’s possible we can
improve our investing performance, too.
The phrase “it’s possible” is an example of a probability
assessment. It represents a point of
view (subjective) on the likelihood, the chance, the probability of an event
happening which, in this case, is improving our investment performance. This kind of thinking, used daily, may be
honed with repetition when exploring investment opportunities to make better
selections and reduce
risk along the way. The
result is increased margin
of safety and, in all “probability”, greater long-run returns.
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