Warren Buffett's 3 Biggest Mistakes in 2020
Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), may well be the greatest investor of our generation. Berkshire Hathaway's 2019 annual shareholder letter notes that, since 1965, the company's share price has risen by a compound annual rate of 20.3%. That compares to a 10% compound annual gain, inclusive of dividends paid, for the benchmark S&P 500. This 10.3 percentage-point annual difference may not sound like a lot, but it's allowed Buffett to outperform the broad-based index by over 2,700,000% since 1965.
What's been truly amazing is that Buffett isn't using some under-the-radar software or insider information to outperform the market. Rather, he's simply locating businesses with sustainable competitive advantages and holding on to them for very long periods of time. This patience is what's allowed the Oracle of Omaha's net worth to compound in recent decades.
But one thing Warren Buffett is not is perfect. He's missed out on gains of close to $19 billion in Walt Disney, and he sold do-it-yourself home improvement stocks Lowe's and Home Depot far too soon.
Source Fool.com
