--- title: "Meaning & Key Takeaway of: I believe the chance of any event causing…" description: "\"I believe the chance of any event causing Berkshire to experience financial problems is essentially zero. We will always be prepared for the thousand-y..." image: "https://sms4smile.com/quotes/i/15c/warren-buffett-183_be-prepared_i-believe-the-chance-of-any-event-causin_1990842.jpg" --- # I believe the chance of any event causing Berkshire to… ![“I believe the chance of any event causing Berkshire to experience financial problems is essentially zero. We will always be prepared for the thousand-year flood; in fact, if it occurswe will be selling life jackets to the unprepared.” quote by Warren Buffett](https://sms4smile.com/quotes/i/15c/warren-buffett-183_be-prepared_i-believe-the-chance-of-any-event-causin_1990842.jpg) [Download](https://sms4smile.com/quotes/i/15c/warren-buffett-183_be-prepared_i-believe-the-chance-of-any-event-causin_1990842.jpg) [Open image](https://sms4smile.com/quotes/i/15c/warren-buffett-183_be-prepared_i-believe-the-chance-of-any-event-causin_1990842.jpg) > “I believe the chance of any event causing Berkshire to experience financial problems is essentially zero. We will always be prepared for the thousand-year flood; in fact, if it occurswe will be selling life jackets to the unprepared.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. He asserts that catastrophic financial crises are virtually impossible for the company, and they are always ready for extreme scenarios, even profiting from them. **In simple terms:** Berkshire is prepared for any disaster, even to profit from it. Key Takeaway Stay prepared for unlikely catastrophes. Themes risk management confidence preparedness Mood cautious optimistic Type business financial When to use this quote - investment strategy - corporate governance - risk assessment Key Concepts financial resilience scenario planning Questions to Reflect On - What would you do if a truly unprecedented event occurred? - How can companies profit ethically from crises? A Different Perspective Overconfidence may overlook rare systemic risks. ★ ★ ★ ★ ★ No ratings yet [Chance](https://sms4smile.com/quotes/about/chance/) [Customer](https://sms4smile.com/quotes/about/customer/) [Events](https://sms4smile.com/quotes/about/events/) [Facts](https://sms4smile.com/quotes/about/facts/) [Financial problems](https://sms4smile.com/quotes/about/financial-problems/) [Flood](https://sms4smile.com/quotes/about/flood/) [Life](https://sms4smile.com/quotes/about/life/) [Problem](https://sms4smile.com/quotes/about/problem/) [Selling](https://sms4smile.com/quotes/about/selling/) [Thousand years](https://sms4smile.com/quotes/about/thousand-years/) ## Related quotes > [Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.](https://sms4smile.com/quotes/warren-buffett/cash-never-makes-us-happy-but-it-s-better-to-have-the-money-burning-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The truth is that I've got all my net worth safely in Berkshire and I will never sell a share so there is no…](https://sms4smile.com/quotes/warren-buffett/the-truth-is-that-i-ve-got-all-my-net-worth-safely-in-berkshire-and-i/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I have pledged - to you, the rating agencies and myself - to always run Berkshire with more than ample cash. We never want…](https://sms4smile.com/quotes/warren-buffett/i-have-pledged-to-you-the-rating-agencies-and-myself-to-always-run/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Our future rates of gain will fall far short of those achieved in the past. Berkshire's capital base is now simply too large to…](https://sms4smile.com/quotes/warren-buffett/our-future-rates-of-gain-will-fall-far-short-of-those-achieved-in-the/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [At Berkshire, I both initiate and monitor every derivatives contract on our books ... If Berkshire ever gets in trouble, it will be my…](https://sms4smile.com/quotes/warren-buffett/at-berkshire-i-both-initiate-and-monitor-every-derivatives-contract/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I will do anything that is basically covered by the law to reduce Berkshire's tax rate. For example, on wind energy, we get a…](https://sms4smile.com/quotes/warren-buffett/i-will-do-anything-that-is-basically-covered-by-the-law-to-reduce/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“I write these words in May of 2011, the week after a huge outbreak of tornadoes killed hundreds across the American South; it was…](https://sms4smile.com/quotes/bill-mckibben/i-write-these-words-in-may-of-2011-the-week-after-a-huge-outbreak-of/) [Bill McKibben](https://sms4smile.com/quotes/author/bill-mckibben/) > [...2009 saw the eighth 'ten-year flood' of Fargo, North Dakota, since 1989. In Iowa, Cedar Rapids was hit last year by a flood that…](https://sms4smile.com/quotes/al-gore/2009-saw-the-eighth-ten-year-flood-of-fargo-north-dakota-since-1989/) [Al Gore](https://sms4smile.com/quotes/author/al-gore/) > [I would rather put out two year-defining songs a year than flood the market with eight or nine songs.](https://sms4smile.com/quotes/ryan-tedder/i-would-rather-put-out-two-year-defining-songs-a-year-than-flood-the/) [Ryan Tedder](https://sms4smile.com/quotes/author/ryan-tedder/) > [We know that the year 2011 is the 7000th year from the flood. We also know that God will destroy this world in that year.](https://sms4smile.com/quotes/anonymous/we-know-that-the-year-2011-is-the-7000th-year-from-the-flood-we-also/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [There's no such thing as a 100-year flood.](https://sms4smile.com/quotes/andrew-cuomo/there-s-no-such-thing-as-a-100-year-flood/) [Andrew Cuomo](https://sms4smile.com/quotes/author/andrew-cuomo/) > [The year 2011 AD will be the 7000th year from the flood of Noahs day. It will be the end of the length of…](https://sms4smile.com/quotes/anonymous/the-year-2011-ad-will-be-the-7000th-year-from-the-flood-of-noahs-day/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“The ripple of today’s lie is tomorrow’s wave and next year’s flood.”](https://sms4smile.com/quotes/max-lucado/the-ripple-of-today-s-lie-is-tomorrow-s-wave-and-next-year-s-flood/) [Max Lucado](https://sms4smile.com/quotes/author/max-lucado/) > [This is an amazingly sound place. We are more disaster-resistant than most other places. We haven't pushed it as hard as other people would…](https://sms4smile.com/quotes/charlie-munger/this-is-an-amazingly-sound-place-we-are-more-disaster-resistant-than/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The very first stock I bought right out of college was Berkshire Hathaway.](https://sms4smile.com/quotes/christie-hefner/the-very-first-stock-i-bought-right-out-of-college-was-berkshire/) [Christie Hefner](https://sms4smile.com/quotes/author/christie-hefner/) ## More by Warren Buffett > [To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual…](https://sms4smile.com/quotes/warren-buffett/to-invest-successfully-over-a-lifetime-does-not-require-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [“Be fearful when others are greedy, and be greedy when others are fearful.”](https://sms4smile.com/quotes/warren-buffett/be-fearful-when-others-are-greedy-and-be-greedy-when-others-are/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Making money isn't the backbone of our guiding purpose; it is the by-product of our guiding purpose.](https://sms4smile.com/quotes/warren-buffett/making-money-isn-t-the-backbone-of-our-guiding-purpose-it-is-the-by/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are…](https://sms4smile.com/quotes/warren-buffett/we-set-no-volume-goals-in-our-insurance-business-generally-and/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Everybody's got a different circle of competence. 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If you're a furniture retailer like we are, you're…](https://sms4smile.com/quotes/warren-buffett/i-ve-read-about-all-the-sales-today-if-you-re-an-auto-dealer-you-re/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I was lucky enough to be born in a time and place where society values my talent, and gave me a good education to…](https://sms4smile.com/quotes/warren-buffett/i-was-lucky-enough-to-be-born-in-a-time-and-place-where-society/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to…](https://sms4smile.com/quotes/warren-buffett/the-most-common-cause-of-low-prices-is-pessimism-some-times-pervasive/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The reaction of weak management to weak operations is often weak accounting.](https://sms4smile.com/quotes/warren-buffett/the-reaction-of-weak-management-to-weak-operations-is-often-weak/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [What you really want to do in investments is figure out what's important and knowable. If it's unimportant or unknowable you forget about it.](https://sms4smile.com/quotes/warren-buffett/what-you-really-want-to-do-in-investments-is-figure-out-what-s/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I don't measure my life by the money I've made. Other people might, but certainly don't.](https://sms4smile.com/quotes/warren-buffett/i-don-t-measure-my-life-by-the-money-i-ve-made-other-people-might-but/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I mean the truth is, I've never had it so good in terms of taxes. I am paying the lowest tax rate that I've…](https://sms4smile.com/quotes/warren-buffett/i-mean-the-truth-is-i-ve-never-had-it-so-good-in-terms-of-taxes-i-am/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the…](https://sms4smile.com/quotes/warren-buffett/the-most-important-quality-for-an-investor-is-temperament-not/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Investors, of course, can, by their own behavior make stock ownership highly risky. And many do. 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