Hi this is Tutor Nick P and this is Proverbs 159. The proverb today is "Never test
the depth of the water with both feet. " Okay. Let's take a look at the note here. The
proverb is originally an African proverb. As an African proverb, it is worded as
" Only a fool tests the depth of the water with both feet. " So slightly
different. This proverb basically means it is not wise to jump into a situation
before thinking carefully about it. Okay. Let's continue. In the West this proverb
became famous because the investor, Warren Buffett often used it. He
adjusted it slightly as well. Buffett's quote was "Don't test the depth of a
river with both feet. " So he changed water to river. Buffett used it to mean the
same as another famous proverb which is basically to express the idea of another
proverb. :Don't put all your eggs in one basket." So don't put all of your
investments all into one thing. You know, again just in case you're wrong. Just in case,
it doesn't go .... Even, even if you think it's very good. Just in case it doesn't
go the way you think. Well let's continue. The idea behind this proverb is that if
you jump in the river with both feet you are in danger of being swept away. You know,
swept away at once. All at one time. So I guess both of your feet is kind of like
all of your money.If you make a bet on an investment and you are wrong, you know, a
lot ... even some of the best investors, once in a while are wrong. You're in danger of
losing everything or too much. Much more than you were prepared to lose. If you
put a considerable amount of money in it. So this is why they're advising you not
to do this. Don't, you know, because you're ... if it's a new investment, you should be
testing first. You know check it out. Don't put too much in it to begin with.
All right and here's just one example of the way we would use it. It is better to
diversify your investment. Never test the depth of the water with both feet. This
way, there is less risk. Okay. Great. I hope you got it. I hope it was clear. I hope you enjoyed
it. Thank you for your time. Bye-bye.