Warren Buffett's 20 billion $ mistake

If there is one thing one social media, which we all love and hate the most at the same time, its those if we bought 10 infosys shares in 1780, in 300 years we would have 800 trillion or if you have bought page industries instead of wearing an underwear, you would…well I’ll leave it just there. :exploding_head:

This one story of Warren buffett is worth reading and listening. He terms this as the single most biggest mistake and worst deal he has ever made.

Dexter Shoes

Buffett made an investment in company worth 433 million dollars in 1993 while his former stock picker Lou simpson held Nike at that time, If the same amount was used to buy nike, it would be 20 billion dollars and not only that, he invested that 433 million by using berkshire’s A stock which would have been worth another 11 billion dollar.

Hear what Buffett has to say on this —

Buffett’s Berkshire Hathaway holds a 2.41 per cent stake in One 97 Communication but is at a huge loss as it bought at an average price of nearly Rs 1,300 back in 2018.

I hope one day in future someone will ask a similar question on One 97 Communication and Mr.Warren Buffet answer could be this was also one of the dumb decision he had made…

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These celebrity investors buy 100s of stocks. Even if 10-20 of them turn out to be multibaggers, it’s more than enough. Hence they are not bothered even if few of their bets prove to be disasters.

True. Recently I had incorporated a private limited company with a share capital of 1 lakh. He came up with some unique business idea, went to one of the renowned venture capitalist and got it valued at 16crores. In less than one month they bought 25 percent of the stake in the company for 4crores.
The company has no assets or revenue yet. It is just an idea which may or may not even work.

We make mistakes at our level, and such great investors too make mistakes at their level. Even if compared to their net worth at that point of time, the loss is big, as they are great investors, they can more than compensate the loss incurred by such investments with other ventures.

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This is a reminder that even experts make mistakes. But they are intelligent investors, so they know what to do about them. They learn from them and move on.