The Intelligent Investor's Mistakes: Warren Buffett

Warren Buffett is a legendary investor and businessman with a terrific record for a long time. He and Charlie Munger built Berkshire Hathaway Inc. from a sick textile company to a holding company. The market value of Berkshire nears $900 billion as of March 2024. Buffett on his long journey of investment made a lot of mistakes. The mistakes are eminent on the investment journey. The trick is to recognize them promptly and correct them. It is always advisable to learn from other’s mistakes would cost less! The mistakes you would recognize and learn the lessons are – 1. Own biases 2. Correctly valuing a company’s future economics 3. How to identify the competitive enduring strength? 4. Market euphoria 5. Capital allocation 6. Opportunity cost 7. Mistakes of omission – “Sucking the thumb” And many more. I captured Buffett’s mistakes from 1965 till the recent time, 2023. I am sure you would get key learnings for your successful investment journey. They also help you to recognize the biases and risks. There are a total of 38 companies or industries that I wrote in story format. Each chapter is dedicated to it. Followed by quotes from Warren Buffett himself and the lessons to be learned. As a bonus also included Charlie Munger quotes as and where applicable! I also discussed various investment frameworks and processes. The following are a few strategies – 1. Scuttlebutt investment 2. Cigar-butt investment 3. Basket investment and so forth. Also, presented the psychology of human misjudgments like – invert, always invert, guard against your biases, and others. This whole galaxy of wisdom would help you learn various investment frameworks. To recognize and manage the risk. These stories and lessons will help you to succeed in your investment journey. So, that you would build long-lasting wealth. They not only help you to profit but also make your journey Joyful!