Friday, May 06, 2011

The beauty of simplicity

"Investors should remember that their scorecard is not computed
using Olympic-diving methods: Degree-of-difficulty doesn't count.
If you are right about a business whose value is largely dependent
on a single key factor that is both easy to understand and
enduring, the payoff is the same as if you had correctly analyzed
an investment alternative characterized by many constantly shifting
and complex variables." (Warren Buffet, 1994 Letter to shareholders)

With regard to problems, inventions work in a similar fashion: it's not the complexity of the problem that matters, but rather the value of the solution that problem "sufferers" attribute to it.

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