It’s dynamite to start with things that can expire and become worthless. For example: buy options of Coke thinking that the stock is attractive.
Borrowed money usually leads to trouble.
Once you start focusing on short-term price behavior, which is nature of buying calls, you are likely to take your eyes off the main ball, which is just valuing businesses.
If you have X and you think you are going to be happier when you’ve got 2X, it’s probably not true.
About me and why this series:
I got a life-changing experience studying Warren Buffett’s annual letters in 2013 after 10 years of speculating, market timing, charting, and forecasting. I started investing in the Vietnamese stock market in 2015 with what I saved from my engineering job. In 2018, I decided to study Warren Buffett’s investing again by going through all of available Berkshire Hathaway’s annual meeting videos. It has been another life-changing experience. Warren Buffett’s teaching is a real germ and yet not many people replicate. Hence, I am committed to share what I learned.
You can subscribe to my blog to follow the series of what Warren Buffett has been teaching in his annual meetings. I attempted to modify but keep as much as possible what he spoke.