The Mistakes That Make Us
It’s only Thursday, but earnings season has us all feeling woozy and ready for the week to end.
Between shipping constraints, semiconductor shortages, metaverse madness, and all the rest, it’s easy to feel down when one of your stocks underperforms during a quarter and plummets. Just look at the likes of Zillow, Activision Blizzard, or Chegg.
So, to combat any rising panic or thoughts of hitting the SELL button on some recent losers, I think it is more prudent to take a lesson from one of the greatest investors of all time: Jordan Belfort!
Just kidding, it’s Warren Buffett.
The Oracle of Omaha is an icon to investors everywhere and, at 91 years old, has seen recessions, bull markets, and pandemics come and go. And he is still among the richest persons on the planet. It’s not been a flawless ride though, and in a special letter to investors, he outlines many examples of times he made mistakes by not reacting quickly enough to a trend or, more damagingly, reacting when he shouldn’t have.
In this 14-page letter, he discusses his past failures and what he learned, how he has applied these lessons — and how you can too — and how to embrace uncertainty moving forward.
If you’re feeling the panic of market volatility right now and watching all those gains tick down, then you need to take a step back, remember that you’re playing the long game, and take a read of his letter here.
Afterward, you’ll almost certainly have a renewed perspective on the value of patience and self-control.