How Warren Buffett benefits from other people's mistakes and how you can learn from them.

How Warren Buffett benefits from other people's mistakes and how you can learn from them.

According to a report by www.aktienwelt360.de,

Warren Buffett and his business partner, Charlie Munger, are known for not focusing on short-term profits, but rather investing in great companies for the long term. According to a report by the US stock market magazine Benzinga, they are said to have made their wealth at the expense of the mistakes of other investors.

Of course, the statement that Warren Buffett and Charlie Munger made their wealth at the expense of other investors' mistakes requires context. It is a statement that Charlie Munger made to his business partner at a Berkshire Hathaway shareholders meeting in 2015. According to Munger, many market participants define their success based on short-term performance. Buffett and Munger, on the other hand, focus on the quality of a company and buy inexpensive stocks in long-term companies. Their success is based on exploiting the market, which sometimes acts irrationally and is short-term oriented.

Of course, the statement that Warren Buffett and Charlie Munger made their wealth at the expense of other investors' mistakes requires context. It is a statement that Charlie Munger made to his business partner at a Berkshire Hathaway shareholders meeting in 2015.

The fact that Warren Buffett and his partner are long-term oriented and profit from other investors' short-term mistakes shows that a solid investment strategy based on high-quality companies can be successful in the long term. This means that investors who follow Buffett and Munger's example can benefit from long-term opportunities.

It would be wrong to accuse Warren Buffett and Charlie Munger of having a malicious thought there. The market is what it is. Some act in the short term, others in the long term. This allows for volatility. And also that some stocks are traded at large discounts from time to time. Even if they have greater potential. Warren Buffett and Charlie Munger have become masters at exploiting this. Instead of viewing this approach as malicious, let's do something else: act like these two far-sighted investors do. It is a pillar of their success that has brought them such great wealth.