By: Dividend Sensei
Warren Buffett’s $3 billion mistake has important lessons to teach all of us about how to avoid making costly errors with our portfolios.
I think we can all agree that it would be great to be as rich as Warren Buffett (the second richest man in the world after Bezos loses 50% of his shares in his divorce). Of course, few people can realistically expect to recreate the man’s epic 20+% CAGR total returns over the past 53 years, which he himself has admitted.
But standing on the shoulders of giants by adopting the time tested lessons of the greatest investors in history (like Buffett) is a great way to both improve our own investing returns, as well as avoid costly mistakes that can dash our financial dreams.
So let’s take a look at what lessons we can learn from Buffett’s recently-admitted $3 billion mistake, and how that can hopefully set us up to grow our own wealth over time.