Everyone makes investing mistakes from time to time. But what sets successful investors apart is their ability to learn from their setbacks and go on to build their fortunes on a stronger foundation.
In a 2010 CNBC interview, billionaire Warren Buffett admitted that the worst stock he ever bought was Berkshire Hathaway, which has long been the foundation of his empire. He took the company over in 1965 because he was angry with its manager, Jack Stanton, and was stuck with Berkshire’s declining textile mills for years afterward.
The takeaway? Don’t invest based on emotion (see mistake #5 below).