Seven investing sins

Warren Buffett's legendary exploits in the markets are enough to garner him the status of the greatest investor of our time. But the man's candour and willingness to share his investing wisdom are also second to none. Over the years, through many letters, seminars, and annual shareholder meetings, the chairperson of Berkshire Hathaway has guided millions in their investing journey. So for this story, we scoured through years of Buffett wisdom and picked the seven common investing sins he has warned investors about. Timing the market According to Buffett, spending more time worrying about how the market will fare rather than focusing on the fundamentals of individual businesses is one of the most common mistakes investors make. No algorithm or planning in the world could have predicted the impact of the pandemic or the rising interest rates that the Russia-Ukraine conflict has induced. Thus, timing the market is near impossible. Hence, Buffett asks investors to focus more on the important and knowable, such as the fundamentals of a business, how it has fared in the past, and if it can survive future headwinds. Trading too often You may believe that if you trade more often, you are sharpening your investing skills. However, that is ra

This article was originally published on December 27, 2022.