Warren Buffett sits atop the financial world because he made the fewest mistakes over his 40-year career. His most common mistakes, he admits, are "sins of omission," in which he
- failed to buy a stock that rallied, or
- sold a stock too soon.
They are simply lost opportunities.
Avoiding losses is probably the most important tool for long-term success in investing. No investor, even Buffett, can avoid periodic losses on individual stocks.
What differentiates Buffett from nearly all other investors is his ability to avoid yearly losses in his entire portfolio.
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