That’s right – even Warren Buffett sometimes makes mistakes.
At least that’s the opinion of some contributing writers with USA TODAY, who wrote recently about the stocks that Warren Buffett currently holds in the Berkshire Hathaway portfolio.
They each picked one stock they advised against buying.
Warren Buffett’s Terrible Timing
And of course Warren Buffett does in fact make mistakes from time to time. Especially, as he confesses, in his market timing.
“I have been dead wrong,” he admitted in his 2008 letter to shareholders. “Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars.”
Here’s what USA Today had to say about Warren Buffett in its recent article:
“Super-investor Warren Buffett has made plenty of investing mistakes. He’s also never been shy about talking about them; to the contrary, his must-read annual letter to shareholders will often spend more time pointing out his flubs than crowing about his successes. And since even the Oracle isn’t infallible, we asked three of our contributors to name a stock that’s in the Berkshire Hathaway Inc portfolio today that investors might not want to buy.”
The article goes on to quote Dan Caplinger, who questions the wisdom of buying Wal-Mart (NYSE-WMT). Caplinger points out that “Even with efforts to bulk up its online e-commerce abilities, Wal-Mart faces pressure from rivals that have no legacy store footprint to manage.”
For Brian Feroldi, Warren Buffett’s big mistake is American Express (NYSE-AXP). Feroldi notes that “the company’s brand name no longer commands the premium market position that it once did and intense competitive pressure is causing the company’s longtime customers to defect.”
And even though Warren Buffett has long been widely known as a huge fan of Coca-Cola, both the product and the stock (NYSE-KO), that’s exactly what Jason Hall calls into question. Hall reminds us that “consumer tastes are changing. Not only are the company’s flagship Coke and Diet Coke products losing popularity, but the entire segment is in decline, with volumes having fallen yearly for most of the past decade.”
You can connect with the entire USA Today article at: http://usat.ly/1pgK4tR.
But What’s Warren Buffett Doing Right?
While the writers cited in the USA Today article may have a point about the long-term viability of these Warren Buffett investments going forward, there’s no question about their success in the past.
Warren Buffett has had a spectacular track record in long-term investing, in spite of his mistakes along the way.
There’s a good lesson to be drawn from his performance.
Whether you’re a long-term investor like Buffett, or are looking for big short-term returns from the markets like our Gold-Plus Elite members at FinancialCyclesWeekly.com, it’s important to remember that not every trade will be successful.
Even if you make mistakes and take some losses, you can come out ahead in the long run.
Profit From Warren’s Buffett’s Secrets
It’s also worth studying the strategies behind Warren Buffett’s stock picks, especially the astrological factors that go into his investments.
That’s the subject of my e-book What The Government Won’t Tell You About Warren Buffett’s Top 10 Stock Picks. It provides an in-depth analysis that can give you some solid perspectives for your own personal stock market strategies.
You may find it worth re-reading now, especially in the light of some the criticism Buffett has been getting.
If you don’t already have a copy, you can get one as an instant download from Harmonic Research Associates.