Warren Buffett and George Schwartz are the most successful investor in the world.
Warren Buffett Born in 1930 in Omaha, Nebraska, he began managing venture capital in 1956 with the incorporation of Buffett (the company was dissolved in 1969.) He is now chairman and chief executive of Berkshire Hathaway. The $ 1,000 tissue investment in 1956 is now worth $ 29,490,500.
George Schwartz Born 1930 in Budapest, Hungary. He began his work by creating the Quantum Joint Venture Fund in 1969, originally called the Double Eagle Fund. In 2000, it became the Quantum Welfare Fund. Schwartz’s $ 1,000 investment in 1969 is now worth $ 5,913,560.
Mark Tire says in a book by Warren Buffett and other investment geniuses that when an expert investor makes a mistake, he has a very different reaction. First, he acknowledges his mistake and takes immediate action to neutralize its effect. He can do so because he has accepted full responsibility for his actions and their consequences.
Neither Buffett nor Schwartz have any emotional obsessions about their mistakes. In fact, they have both been honest about their mistakes. “A manager who does not lead others in the right direction is gradually misleading himself,” says Buffett. In context, if you want to be honest with yourself, you have to admit your mistakes.
Schwartz is also very explicit about this. “For others, making mistakes is a shame, but for me, it is pride to recognize one’s own mistakes. When we realize that deficiencies are human characteristics, making mistakes is no longer a shame and shame only in our inability to correct mistakes,” he says. Is.”
Expert investor errors are usually one or more of the following six cases:
- He did not unwittingly adhere to his system.
- One negligence: neglected something when investing.
- An emotional blind spot has damaged his judgment.
- He has changed something that he himself has not yet realized.
- Something changed in the environment that he didn’t pay attention to.
- Failure Mistakes: Investments to be made but not made.
When an expert investor frees his mind from an unsuccessful investment, he will be able to analyze the mistakes; he will always analyze all the mistakes. He first wants to avoid repeating this mistake, so he needs to know what was wrong and what was the reason behind it. Second, he knows he can improve his system and improve performance with fewer errors. That he knows that reality is the best teacher and that mistakes are the best lessons and that he is curious to learn these lessons.