A stock can look very different six months after purchase, especially when its price has fallen way below the original entry point.
Most investors hold on, waiting for the price to recover rather than locking in a loss. A pattern one of the most successful investors alive says causes lasting financial damage.
In his 2024 letter to Berkshire Hathaway shareholders, Warren Buffett identified a behavioral pattern he called "the cardinal sin" of managing a business.
His late partner, Charlie Munger, had a blunter label for the habit of sitting on known problems and hoping they disappear on their own: "thumb-sucking."
Buffett's candor in the 2024 Berkshire Hathaway annual letter went beyond a single line about thumb-sucking.
#sucking
Most investors hold on, waiting for the price to recover rather than locking in a loss. A pattern one of the most successful investors alive says causes lasting financial damage.
In his 2024 letter to Berkshire Hathaway shareholders, Warren Buffett identified a behavioral pattern he called "the cardinal sin" of managing a business.
His late partner, Charlie Munger, had a blunter label for the habit of sitting on known problems and hoping they disappear on their own: "thumb-sucking."
Buffett's candor in the 2024 Berkshire Hathaway annual letter went beyond a single line about thumb-sucking.
#sucking
3 months ago
