Part 3/7:
One key takeaway from Buffett and Munger's experiences is their instinctive suspicion when faced with propositions that seem too good to be true. Munger shares an anecdote about a notable encounter with a promoter who sought to convince them of an insurance program that could seemingly offer extraordinary benefits. Their shared skepticism towards such alluring propositions has been instrumental in shielding them from potential pitfalls.
Both Buffett and Munger openly acknowledge that they eliminate around 90% of the opportunities that come their way. Though they may overlook some promising cases, their focus is on confidently trusting those they choose to work with. The aim is not to win every opportunity but to ensure the ones they pursue are worthwhile.