"It's interesting how many mistakes you can make if you just keep going."Warren Buffett Warren Buffett is the greatest investor of all time. He must do everything right…right? Dead wrong. Warren has made a lot of mistakes too. And in this …
Warren Buffett is the greatest investor of all time. He must do everything right…right?
Dead wrong. Warren has made a lot of mistakes too. And in this final hour of the recent Berkshire Hathaway Annual Meeting, he gives priceless advice on how to get past them.
Making Mistakes
"I can think of all sorts of things that could've been done differently, but so what. I'm not perfect."
Warren is quick to mention that he's made numerous mistakes in life.
He didn't buy Google, even though Geico was using Google's ad services all the time. He also lost billions on an investment in Dexter Shoes.
In fact, even his original purchase of Berkshire itself was a mistake.
The old textile mill he bought was going nowhere. That's why he had to retool it into the conglomerate it is today.
The thing is, only Warren remembers these mistakes. I had to look them up.
His good decisions put him so far ahead that the losers never mattered.
Moving On
You expect successful people to be highly self-critical. But Warren isn't:
"I don't believe in lots of self-criticism…"
For an investor, that makes a lot of sense. Some losses are inevitable. Beating yourself up over each one won't get you anywhere.
This is especially true in venture capital. Losses are the rule — if you're investing early, probably 80% of your companies will go to zero.
If every mistake makes you hate yourself, you won't last long! That's true in investing, and it's true in the rest of life as well.
"You can't solve everything in life. You do the best you can with it."
Being Grateful
Warren has lived an incredible life. At 93, he's still going strong and doing what he loves: making great investments.
I'd assume he has some superior knowledge or set of habits. But Warren chocks up a lot of his success to luck.
"Anybody who says 'I did it all myself'…they're delusional."
As someone who came from a poor background and has found some degree of success, I'm often tempted to say "I did it all!" But that's not true.
I went to many wonderful schools full of teachers who cared. My family looked after me and sacrificed for me.
Whatever I've been able to do, I'm only responsible for a small part of it.
Wrap-Up
I had a wonderful time watching Warren deliver wisdom over the 6 hours of the annual meeting! Of the entire 6 hours, here's the line that stuck with me most:
"I've made mistakes occasionally, but they filtered out over time. We learn."
I oughta get that tattooed on my forehead. It's a wonderful thing to remember.
We try, we fail, we try again. Over time, if we make a few good decisions and are fortunate enough to live in a wonderful country like this, we come out way ahead.
I hope you enjoyed this series as much as I did. Have a wonderful weekend!
What have you learned from Warren? Leave a comment and let us know!
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