In Michael Batnick’s new book “Big Mistakes: The Best Investors and Their Worst Investments,” it well explained the fact that even the greatest money managers’ investing careers cannot continuously filled with success after success. Written in FuninUSA news, Batnick is the director of research at Ritholtz Wealth Management.
In Batnick’s book, he shared key lessons and money-losing investment examples from several legendary managers such as Warren Buffett(the founder of Berkshire Hathaways Inc.), Stanley Druckenmiller and Michael Steinhardt. And even the Oracle of Omaha has made poor investment decisions.
Batnick said, Buffet has once made a wrong investment in Dexter Shoes, a company which would eventually be worth zero, costing the investor nearly $6 billion in economic value due to Berkshire Hathaway shares' appreciation.
The author quoted Tren Griffin who wrote, "In doing their due-diligence for Dexter Shoes, Buffett and Munger made the mistake of not making sure the business had a moat and being too focused on what they thought was an attractive purchase price."
“The next time you take a big loss or sell too early or try to get back to even, remember, we've all been there,” Batnick wrote at the end of his book. He showed the best, most successful fund managers all have made major analytical or impulsive errors. The key lesson is investors need to learn from their bad experiences, according to the author.
Submitted June 18, 2018 at 06:25AM by FuninUSA https://ift.tt/2HXdPJG
