Investing Experts Reveal Warren Buffett’s Mistakes

Nati Harnik / AP /

Known as the “Oracle of Omaha,” Warren Buffett is well known as one of the greatest investors of all time. According to Forbes, his investment decisions helped him amass a net worth of $108.1 billion. Not necessarily a winner.

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Here are some of the mistakes Buffett made, according to financial and investment experts.

Don’t buy during pandemic downturn

“Warren Buffett made bad investment decisions during COVID-19,” said Steve Chow, founder of and money management expert. “He’s known for ‘getting greedy when others are afraid,’ but he didn’t follow his own advice during the pandemic. A panic sell saw his S&P drop nearly 35% of his When it went down, he didn’t buy anything and missed out on a huge money-making opportunity.”

Take our poll: Should people invest in cryptocurrencies?

bearish on bitcoin

“I think Buffett’s claims about cryptocurrencies, especially bitcoin, are false,” said Adam Strzok, founder of Strzok Capital. “Buffett has made multiple bearish statements against Bitcoin and cryptocurrencies at large, citing the lack of true utility associated with the token.

“The core technological innovations behind Bitcoin enable trustless P2P exchange of value without the limitations associated with current fiat-based currency systems. can transfer value to another individual without the need to authenticate or validate the transaction, allowing near-instantaneous exchange of value from anywhere at any time.

“From my point of view, Bitcoin in particular represents its core innovation. And as a first mover, Bitcoin has a similar value to gold. We can position Bitcoin as a digital store of value compared to currencies.”

However, not all experts consider this a failure.

Tokenomics expert Eloisa Marchesoni said, “Given how crypto has worked so far, investing in crypto is not a hedge against inflation, nor is it more transparent than the stock market. I don’t blame him for not doing it.” “Crypto is for brave punks and probably won’t speak to his generation.”

Acquisition of Berkshire Hathaway

Buffett turned Berkshire Hathaway into a successful conglomerate, but when he first bought the company it was a failed textile company.

“Buffett admits that buying Berkshire Hathaway in 1964 was a mistake,” said Sam Dogen, founder of Financial Samurai. Buffett wanted to get him out because the owner violated the purchase price previously agreed to buy Buffett’s shares, causing Buffett to go the opposite direction, sinking good money following bad results. .”

It takes too long to buy tech stocks

“Buffett has a history of avoiding investing in any kind of business or technology he doesn’t understand. Absolutely,” said Jeff Feng, head of Sei Network.

CEPF’s Bob Lotich, author of Simple Money, Rich Life, also sees this as a failure.

“Warren is so right it makes me nervous to point out his mistakes, but I bought Amazon stock in 2010 because it was clear they were up to something big. because it happened,” he said. “Warren said he didn’t start buying Amazon stock until 2019. He thought it was a mistake not to start investing in Amazon sooner.”

don’t invest money

“He said his claim that physical gold had little or no value to his portfolio was off the mark because ‘I don’t do anything but sit there and look at you,'” said Personal Finance. said Len Penzo, founder of the blog Len Penzo. “Rather than seeing gold as an investment, Buffett ignores its primary role as wealth insurance. Gold is the ultimate money, and unlike stocks and bonds, it has zero value.” This is why many people keep a small percentage of physical gold in their investment portfolios as a hedge against catastrophic financial recessions and financial system crises.”

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Curtis Ray, financial planner and creator of MPI Unlimited, said: “They may be good at accumulating wealth, but it is very inefficient to distribute retirement income because of the 4% rule. Even if you achieve the rare achievement of saving more than $40,000 a year in retirement income, it could be taxable if not in the Roth IRA.”

“He does nothing wrong”

Not all financial professionals would classify any of these actions (or omissions) as mistakes.

“There’s nothing wrong with Warren Buffett,” says David Bach, founder of FinishRich Media. “This man, along with his partner Charles Munger, was the GOAT I invested in my lifetime and is without a doubt one of the greatest financial teachers that ever lived. Drop the mic.”

Gabrielle Olya contributed reporting for this article.

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