Why Warren Buffett has done more to educate -3-

Mead said that Buffett doesn't rush to jump on the bandwagon, but "will sit, watch and learn. With a stock that has a business that can compound exponentially, you can be late to the game and do extremely well."

Mistakes

All investors make mistakes and can benefit from trying hard to take emotion out of their investment decisions. For example, if you buy a stock which declines significantly in value, should you wait for it to recover, or have you identified something better that may rise more quickly than the first stock might recover?

Buffett writes about mistakes he has made in every letter. He also emphasizes the importance of avoiding "major mistakes."

If he later thinks he overpaid for an acquisition, he admits it and shares the lesson learned. In his 2014 letter, for example, Buffett wrote that among Berkshire's portfolio of subsidiary companies there were some poor performers. This was "the result of some serious mistakes I made in my job of capital allocation. I was not misled: I simply was wrong in my evaluation of the economic dynamics of the company or the industry in which it operates," he wrote.

Nobody, not even Buffett, is perfect.

-Philip van Doorn

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11-07-23 1533ET

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