TAO OF WARREN BUFFET # 21

With each investment you make you should have the courage and conviction to place at least 10% of your net worth in that stock.

Conviction is based on what you know will happen, faith is based on what you hope will happen.To make money in the investment game you need to have conviction,which means that you need to know what you are doing.A surefire way to achieve Warrens level of conviction is to invest significant amounts of money.Thiis causes you to focus and make certain that you have done your homework before you make your investment .But if your investment strategy is based on faith,then you really haven’t a prayer.