Combination Quote by Warren Buffett
“We make investment decisions based on our evaluation of the most profitable combination of probabilities.”
About This Quote
Source Shareholder Letter, Berkshire Hathaway Annual Report, 2008
Investment choices should be guided by evaluating which probability scenarios yield the highest expected profit.
In simple terms: Pick investments with the best profit odds.
Key Takeaway
Focus on high‑probability profit combos.
Themes
finance
decision‑making
probability
Mood
analytical
cautious
Type
business
philosophical
When to use this quote
- portfolio construction
- risk management
- business strategy
- financial planning
Key Concepts
expected value
risk assessment
Questions to Reflect On
- How do you quantify profitable probabilities?
- When might a high‑probability bet be ignored?
A Different Perspective
Complex models can obscure simple intuition.
![“Geometry, which should only obey Physics, when united with it sometimes commands it. If it happens that the question which we wish to examine is too complicated for all the elements to be able to enter into the analytical comparison we wish to make, we separate the more inconvenient [elements], we…” quote by Jean le Rond d'Alembert](https://sms4smile.com/quotes/img-quotes/0d9/jean-le-rond-d-alembert-26487_able_geometry-which-should-only-obey-physics_6945.jpg)
