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Warren Buffett's 'Blunders'

Tuesday, 3 Jul 2007 | 10:36 AM ET

Warren Buffett isn't perfect, but one of his strengths is his ability to learn from his mistakes and bounce back. That's the thesis of a piece appearing on BusinessWeek.com this week.

Ben Steverman details how everyday investors can also learn by following Buffett's example: acknowledge mistakes and keep them small.

Sometimes it helps to be willing to make mistakes. Steverman quotes Buffett's 1984 letter to Berkshire Hathaway shareholders:

"Most managers have very little incentive to make the
intelligent-but-with-some-chance-of-looking-like-an-idiot
decision. Their personal gain/loss ratio is all too obvious: if
an unconventional decision works out well, they get a pat on the back and, if it works out poorly, they get a pink slip. (Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.)"

Questions? Comments? Email me at buffettwatch@cnbc.com

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