Stan Druckenmiller once said, “Every great money manager I’ve ever met, all they want to talk about is their mistakes. There’s a great humility there.”
So what’s the benefit of constantly talking about their mistakes? For one, they embrace the inevitable.
Investing is just a long series of decisions where some end in gains and others end in losses. If you’re doing it right, the gains outweigh the losses in the end, hopefully, by a large enough margin that your goals are reasonably satisfied.
In other words, every investor makes mistakes. Those that don’t are lying. That’s the uncomfortable truth. Those that go on to be great investors, learn this through experience…and apparently love to talk about it.
Howard Marks, in his latest book, shared a great excerpt by Peter Bernstein which drives home the importance of this realization and why it matters: Continue Reading…