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This week, Phil and Danielle continue their discussion of Warren Buffett quotes.\nWarren Buffett Quotes from this Episode\n\n\u201cA great investment opportunity occurs when a marvelous business encounters a one time huge, but solvable problem.\u201d\n\nA marvelous business has a very specific definition, it's one, that you can look into the future with a pretty high degree of certainty about this company being more productive and bigger than it is today. And by the future, I mean, five to 10 years out. These types of businesses don\u2019t go on sale often.\nIt's a very specific kind of problem that Buffett is talking about here. It is, number one, one time, it's going to happen one time. And number two, they are going to solve it, no question about it. Those two things have to go together.\n\u201cWe believe that a policy of portfolio concentration may well decrease risk, if it raises as it should both the intensity with which the investor thinks about a business and the comfort level he must feel with his economic characteristics before buying into.\u201d\n\nHere, Buffett is saying, if you focus on a few things, where you have a very high comfort level or very high level of certainty, that's what takes your risk down.\n\u201cOverall, we've done better by avoiding dragons than by slaying them.\u201d\n\nIf you're looking to reduce risk, you're not going to go out there and acquire huge companies with problems just because they\u2019re cheap.\n\u201cIt is optimism, that is the enemy of the rational buyer.\u201d\n\n\u201cThe business schools reward difficult complex behavior more than simple behavior. But simple behaviors more effective.\u201d\n\n\u201cBe fearful when others are greedy and be greedy when others are fearful.\u201d\nFor show notes and more information, visit www.investedpodcast.com.\nLearn more about your ad choices. Visit megaphone.fm/adchoices