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
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.)"
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