At the 2005 Berkshire Hathaway Annual Meeting, Warren Buffett opined that there’s no “degree of difficulty” adjustment for investing:

One of the interesting things about investment is that there’s no degree of difficulty factor. I mean, if you’re going to go diving in the Olympics and try to win a gold medal, you get paid more, in effect, for certain kinds of dives than others because they’re more difficult. And they properly adjust for that factor. But in terms of investing, there is no degree of difficulty. If something is staring you right in the face and the easiest decision in the world, the payoff can be huge. And we get paid, not for jumping over 7-foot bars, but for stepping over 1-foot bars…. Now maybe we cast out too many things as being too hard and thereby narrow our universe. But I’d rather have the universe be…interpreted as being a little smaller than it really is, than being interpreted as larger than it is.

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