4 Money Lessons You Can Learn Now from Warren Buffett’s Investment Actions in Early 2025
Warren Buffett, 94, is the ‘Omaha Oracle’ and billionaire who built his wealth on eternal principles: keeping disciplined and thinking long. As one of the greatest investors of all time, his annual letter to shareholders of Berkshire Hathaway is a must-read if you take investing and building wealth seriously.
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Here are four gains from his latest letters worth applying for your financial life this year.
Buffett’s honesty about his past investment errors is one of the most refreshing things about his letters. In this year’s note, he acknowledged poor judgment in some commercial acquisitions, and stressed that delaying action could exacerbate errors.
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“Sometimes I make mistakes when evaluating the future economics of a business I bought for Berkshire – every capital allocation case goes wrong… At other times, I make mistakes when evaluating Berkshire managers’ abilities or loyalty.”
“The average hit average for personnel decisions is something that can be made,” he added. He would tell me that the basic sin delayed the correction of the wrong or what Charlie Munger called the ‘thumb strike’ problem.
In a letter to shareholders in February, Buffett also explained why Berkshire established $334 billion in cash at the end of 2024.
He assured investors that most of Berkshire’s funds remain in stocks, especially U.S. stocks, will not change at any time in the near future.
“Although some commentators currently believe that cash situations at Berkshire are extraordinary, most of your funds are still in stocks,” Buffett explained. “This preference will not change.” He believes that ownership, especially in stable and long-term assets, is how you build and protect your wealth.
He added: “Although our ownership of stocks dropped to $272 billion from $354 billion last year, the value of controlled stocks we uncited has increased and far exceeds the value of the sellable portfolio.”
Sometimes, changing the entire trajectory of your life or financial journey only requires a wise move. In his annual letter, Buffett reflected on how some choices change.
