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Lesson's from Buffett's blunder...
Published 15 days ago • 4 min read
Presented By: The Early Bird
I remember hearing that it's unwise to deify (make godly) people because everyone is flawed and imperfect, and doing so would cloud your judgment of that person and set you up for a letdown.
A touching tribute to Charlie at the start of the meeting is a must-see for any fan of the dynamic duo.
But one thing jumped out at me from the day's events.
Finding out that Warren screwed up!
And it might be the most important thing we can use to be better investors.
Berkshire sold its entire Paramount Global (PARA) position, and Warren said, “It was 100% my decision, and we’ve sold it all, and we lost quite a bit of money.”
Barron's estimated that Berkshire had paid over $30 a share, but how much they lost is unknown.
With Paramount shares recently in the mid to low teens, Berkshire likely lost around 60% of its investment.
Warren lost around 60% of the investment.
This news made me feel much better about exiting Leggett & Platt (LEG) this week for a 59.5% loss.
I won't lie; selling and realizing such a significant loss was pretty painful.
But Warren's (and my) pain can be your gain.
Berkshire's Paramount loss reinforces a few essential beliefs about investing.
First, it is incredibly important to sell when you know you're wrong about an investment and not continue to hold.
There's a saying, "Every day you don't sell a stock is another day you choose to buy it."
🤑Rick Stambaugh from Orange Mountain Financial brings you ‘Grow Retirement Income.' He’s a seasoned pro with over 30 years in trading and a passion for guiding folks to a prosperous retirement.
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Each week you'll learn how to be a better dividend investor and follow the journey of a welder with a passion for passive income to $1,000,000 and beyond.
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