When you build a bridge, you insist that it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. And that same principle works in investing.
It is clear, then, that wisdom is knowledge having to do with certain principles and causes. But now, since it is this knowledge that we are seeking, we must consider the following point: of what kind of principles and of what kind of causes is wisdom the knowledge?
Once you become aware of your own body and its movements, you will be surprised that you are not your body. This is something of a basic principle, that if you can watch something then you are not it. You are the watcher, not the watched. You are the observer, not the observed. How can you be both?
Capitalism drives the employers to do their worst to the employed, and the employed to do the least for them. And it boasts all the time of the incentive it provides to both to do their best! . . . The reason the Capitalist system has worked so far without jamming for more than a few months at a time, and then only in places, is that it has not yet succeeded in making a conquest of human nature so complete that everybody acts on strictly business principles.
As human beings we are all the same. We have this marvelous intelligence, which sometimes creates problems for us, but when influenced by warm-heartedness can be very constructive. In this context we need to appreciate the value of having moral principles.
The history of science can be viewed as the recasting of phenomena that were once thought to be accidents as phenomena that can be understood in terms of fundamental causes and principles.
The machines that are first invented to perform any particular movement are always the most complex, and succeeding artists generally discover that, with fewer wheels, with fewer principles of motion, than had originally been employed, the same effects may be more easily produced. The first systems, in the same manner, are always the most complex.