The Book ‘Big Mistakes-The Best Investors & Their Worst Mistakes’ is written by Michael Batnick who blogs at The Irrelevant Investor
As the Title suggests, the Book covers the investing mistakes of 16 Investors, including the author.
Some of the investors covered in the Book are Ben Graham, Warren Buffett,Charlie Munger, John Maynard Keynes, Chris Sacca,Stanley Druckenmiller etc
The author does a fantastic job of explaining the circumstances and rationale by which these super investors made their mistakes.
The Book contains lots of investing wisdom and is a terrific read.
Some great excerpts from the Book:
“You must react to losses with equanimity.The time to sell an investment is not after it has declined in price.If this is how you invest,you’re destined for a long life of disappointing returns.Learn from the best and do not attempt to avoid losses.It cannot be done.Instead,focus on making sure that you’re not putting yourself in a position of being a forced seller.”
“What stands out for me,as far as lessons I’ve learned in the market,is that if you have a liability coming due in the next few months or even few years. do not invest.The market doesn’t care about your goals.It doesn’t know that you’re retiring in five years or when your child is going to college.”
The last chapter is on the author’s own investment journey which I found to be brutally honest and illuminating.
The Book contains the lessons only from American investors…hope some enterprising reader writes one on the investment follies of our top Indian investors.
I would strongly recommend this book if you want to become a better investor.