CHECKS AND BALANCES
Warren Buffett's Biggest Investment Mistakes — And How You Can Avoid Them
At Berkshire Hathaway's annual meeting, Warren Buffett admitted that he regretted selling part of BH's stake in Apple in 2020. BH still owns 944M shares of Apple, which are worth around $111B.
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The Lede
While Buffett's wealth has increased dramatically because of his business acumen, he has also made mistakes. Here are some of his previous blunders that now serve as teachable moments.
Key Details
- Purchasing BH stock out of spite was a $200B mistake, Buffett says. The takeaway: don't mix emotions and investing.
- Buffett's "most gruesome" error was using $443M worth of BH stock, now worth $10.6B, to purchase Dexter Shoe, which failed. Ditching high-performing stock to gamble on risky stock is a no-go.
- He regrets purchasing General Re and ConocoPhillips, whose share prices both plummeted. He didn't anticipate various market factors, consider potential downsides or insure them from losses.