Leave Money on the Table, It’s Okay
Most investors know Warren Buffet’s two rules of investing: 1) don’t lose money and 2) don’t forget rule #1.
I have another rule that’s beginning to yield benefits: 3) it’s okay to leave money on the table.
Too many times, I tried to squeeze out additional profits by waiting for a better buy or sell price, or in negotiations, get EVERYTHING I wanted and more. And too many times, I’ve waited too long and got a worse deal than if I got a price that I was comfortable with, or blew a deal that I wanted because I wouldn’t give up anything in a negotiation.
Well, that’s changed a lot. For stocks, I set a price for which I think I can meet my ROI goals and run with it. In negotiations, I don’t mind giving up something, as long as my major goals are met. These means that my buy or sell price won’t be the best price or that I won’t maximize my wins in a negotiations. But it also means that I walk away with my goals being met. And that’s critical.
