Berkshire Hathaway CEO
Warren Buffett
doesn’t hesitate to acknowledge when he or his organization has made mistakes.
Errors are unavoidable—and after acknowledging that you’ve made a mistake, you should promptly take responsibility for it to avoid further harm, as Buffett noted in his writings.
annual letter to shareholders
, released over the weekend. He took that lesson from his long-time business associate and friend,
the late Charlie Munger
, he noted.
Buffett penned, “The ultimate mistake is postponing the rectification of errors, which Charlie Munger referred to as ‘thumb-sucking.’” He added that according to Munger, issues can’t simply be ignored; they demand proactive measures, even if those steps are unpleasant.
In his communications this year, Buffett pointed out that he mentioned the terms “mistake” and “error” a total of 16 times across his annual letters between 2019 and 2023. These blunders encompassed everything from miscalculating economic shifts and botching evaluations of potential employees to making poor investment choices in businesses.
DON’T MISS:
Ways to Begin a Side Business for Additional Income
Many of his mistakes at Berkshire Hathaway were due to hesitance, according to Buffett who mentioned this during the company’s
He had passed up chances to invest in promising emerging firms since they were asking for an excessive amount of capital.
“The expense has amounted to numerous billion dollars,” stated Buffett. Given the corporation’s
cautious investing strategies
Most likely, I’ll continue to make that error.
Munger clearly expressed his views on error-making during this discussion.
The Wesco Financial Corporation gathering held in 2016
You shouldn’t linger on previous mistakes, but you ought to contemplate them to prevent their recurrence.
No one achieves perfection every time,” Munger stated. “It’s crucial to reflect on your previous mistakes so you’re less inclined to make them again, however, I’m not agonizing over this or going through any distress because of it.
‘Errors vanish over time; victors can continually flourish.’
Admitting to a mistake can foster trust amongst coworkers, as
It demonstrates emotional intelligence along with humility.
Last year, communication expert Matt Abrahams shared with SofTechMake It that this approach can also put your colleagues at ease when acknowledging their own needs for assistance, which could lead to increased teamwork and collaboration.
In the early stages of his tenure at Amazon, current CEO Andy Jassy delivered a comprehensive presentation consisting of 220 slides to founder Jeff Bezos and other high-ranking officials within the company. This detailed slideshow outlined his team’s strategic operational plans.
Jassy mentioned in a clip
uploaded by Amazon earlier this year. Midway through the presentation, Bezos pointed out that one slide was riddled with mistakes.
Jassy opted for humility over defensiveness; he offered an apology, admitted his mistake, and proceeded without dwelling on it. In the video, Jassy stated, “To gain trust: If you claim to have something, make sure you provide it. And if what you’re responsible for isn’t doing well, criticize yourself constructively and work towards fixing it.”
The positive aspect for Buffett, as mentioned in this year’s letter, is that his right calls during his time at Berkshire Hathaway appear to outweigh his mistakes.
“As we’ve observed, a solitary successful choice can have an astounding impact over time,” he penned, referencing Berkshire Hathaway’s acquisition of the massive insurer Geico, the recruitment of insurance executive Ajit Jain to serve as vice president, and his fortune in discovering Charlie Munger—a uniquely exceptional collaborator, confidant, and loyal companion.
“Errors vanish over time; victors can continually flourish,” Buffett added.
Looking to make some additional income on the side?
Enroll in SofTech’s latest online class now.
Ways to Begin a Part-Time Business
To acquire advice for beginning and tactics for achieving success from leading side hustle professionals, sign up now and apply the promo code EARLYBIRD to receive a 30% discount off $97 (+ taxes and fees) until April 1, 2025.
Plus,
subscribe to SofTechMake Its mailing list
To obtain advice and strategies for achieving success at your job, managing finances, and navigating everyday challenges.
