I presume he's referring to martial arts philosophy
Karate here (points to head) Karate here (points to heart) Karate never here (points to belt)
The kid: - Karate is fighting..you train to fight.
Miyagi: (pausing) - Is that what you think?
Kid: - No
Miyagi: - So why train?
The kid: - So I won't have to fight.
Overall great movie - Elizabeth Shue was soo cute. I loved part 2 as well with the trip to Okinawa. Part 3 was so-so. Never saw (or wanted to see) part 4