Warren Buffett, one of the most successful investors of all time, emphasizes a critical lesson for investors: history often repeats itself because people fail to learn from it. Speaking at the 2004 Berkshire Hathaway Annual Meeting, Buffett remarked, “What we learn from history is that people don’t learn from history.”
This observation is particularly relevant in financial markets, where boom and bust cycles are common. Despite past experiences with market excesses, investors frequently make the same mistakes, chasing quick profits during booms and panicking during busts.
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© 2024 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.