How the Oracle's Biggest Mistake Proved Fisher Right

Here’s the story of how even the greatest investor of our time, Warren Buffett, made a whopper of a mistake that proves Philip Fisher's wisdom about investing.

Now, you've probably heard of Berkshire Hathaway, right? It's Buffett's golden goose, the company that turned him into one of the richest men on the planet. But here's the kicker - it started as one of his biggest blunders.

Back in 1962, Buffett started buying stock in Berkshire Hathaway, a failing textile company. He noticed a pattern: every time the company closed a mill, it would offer to buy back shares at a slightly higher price. Buffett thought he could make a quick buck by buying low and selling high when they closed the next mill.

But then something happened that got Buffett's dander up. The company made him a verbal offer to buy back his shares at $11.50 each. Buffett agreed, but when the official offer came in writing, it was for $11.375 per share. That quarter of a dollar difference didn't sit well with our Warren.

So what did he do? Instead of selling, he decided to buy more shares and take control of the company. He was going to teach those textile folks a lesson!

Well, as Buffett himself later admitted, this was a $200 billion mistake. You see, he ended up pouring good money after bad into a dying textile business for 20 years before finally shutting it down. If he had invested that money in insurance companies instead (which he eventually did), Berkshire would be worth about $200 billion more today.

Now, this is where Philip Fisher's wisdom comes in. Fisher said, "An investor should always realize that some mistakes are going to be made." And boy, did Buffett make one!

But here's the thing - Buffett didn't let this mistake define him. He learned from it, adapted, and went on to build one of the most successful companies in the world. He turned Berkshire Hathaway from a failing textile mill into a powerhouse conglomerate.

This story is like a game of baseball. Even the best hitters strike out sometimes. But they don't quit the game after one bad swing. They step up to the plate again, ready for the next pitch.

The lesson here is clear as a bell: Don't expect perfection in your investing journey. Mistakes are going to happen. They're like uninvited guests at a picnic - annoying, but often inevitable.

What matters is how you handle those mistakes. Do you let them discourage you, or do you learn from them and keep swinging? Buffett chose the latter, and look where it got him!

Dust yourself off, learn what you can, and get ready for your next at-bat. After all, in the grand game of investing, it's not about never striking out - it's about hitting more home runs than strikeouts over the long haul.

And who knows? Your next swing might just knock it out of the park. Just remember, as Philip Fisher wisely noted, some mistakes are bound to happen along the way. It's all part of the game, folks. Now, who's ready to step up to the plate?