Gates argues that failure often produces more useful lessons than success because it exposes weaknesses, mistaken assumptions and gaps in judgement. Successful outcomes can confirm that an approach worked, but they do not always make clear why it worked or which risks were narrowly avoided. Failure tends to force closer examination of decisions and their consequences.

By calling the idea “trite but absolutely true”, Gates acknowledges that the principle is familiar while maintaining that its practical value remains important. The lesson depends on reflection rather than failure alone: setbacks become useful when people identify what went wrong and change their behaviour accordingly. The quote can therefore be applied to business, education and personal development, particularly when reviewing unsuccessful projects or decisions. It encourages treating mistakes as evidence that can improve future judgement rather than as experiences to be ignored or concealed.