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Lessons From Warren Buffett

Lessons From Warren Buffett: Other People’s Mistakes Bring Investing Opportunities

Few can hope to reach the heights of investing genius embodied by Warren Buffett. However, Buffett himself humbly suggests that the majority of profitable investments do not spring from extraordinary brilliance, but rather arise from astutely capitalizing on the missteps of others. In essence, success in the realm of investment hinges on an ability to recognize and seize upon the errors committed by one’s counterparts. This notion underscores the critical importance of a shrewd and discerning mindset in navigating the complex and ever-shifting terrain of financial markets.

“What gives you opportunities is other people doing dumb things,” Buffett said at the 2023 Berkshire Hathaway annual meeting. “Well, the 58 years we’ve been running Berkshire, I would say there’s been a great increase in the number of people doing dumb things. And they do big, dumb things, and the reason they do it to some extent is because they can get money from other people so much easier than when we started.”

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© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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