1 Crucial Piece of Investing Advice Warren Buffett Just Shared
Warren Buffett recently released his much-anticipated annual letter to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) shareholders. These letters from the conglomerate's billionaire CEO are considered must-reads by millions of investors and often contain multiple valuable pieces of investing wisdom.In Buffett's letters, the legendary investor often shares an investing lesson or two he's learned along the way. And in the latest version of the letter, the first topic Buffett discussed wasn't about how well Berkshire's businesses are doing, or how the company recently broke through a $1 trillion market cap for the first time. Instead, Buffett chose to focus on the mistakes he's made. Buffett discussed several different types of mistakes in this year's letter. As he said, "Sometimes I've made mistakes in assessing the future economics of a business I've purchased for Berkshire -- each a case of capital allocation gone wrong." He went on to say that this applies to both acquisitions as well as stock investments, and that there are some glaring examples from each category, even from the recent past.Continue reading
Warren Buffett recently released his much-anticipated annual letter to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) shareholders. These letters from the conglomerate's billionaire CEO are considered must-reads by millions of investors and often contain multiple valuable pieces of investing wisdom.
In Buffett's letters, the legendary investor often shares an investing lesson or two he's learned along the way. And in the latest version of the letter, the first topic Buffett discussed wasn't about how well Berkshire's businesses are doing, or how the company recently broke through a $1 trillion market cap for the first time. Instead, Buffett chose to focus on the mistakes he's made.
Buffett discussed several different types of mistakes in this year's letter. As he said, "Sometimes I've made mistakes in assessing the future economics of a business I've purchased for Berkshire -- each a case of capital allocation gone wrong." He went on to say that this applies to both acquisitions as well as stock investments, and that there are some glaring examples from each category, even from the recent past.
