News & Trending Investing News

11 of Warren Buffett's Biggest Financial Regrets

He may be the greatest investor of all time, but he's still made mistakes.

By Stacy Garrels

Edited by Chris Kissell

Updated Sept. 24, 2024

There is a reason that billionaire Warren Buffett is known as the greatest investor ever: The Oracle of Omaha has a legendary ability to read companies, their leaders, and Wall Street.

Buffett has built an empire on making the right money moves. But this business titan has been wrong many times too. Here are some of Buffett's biggest financial regrets.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Purchasing Berkshire Hathaway

You may know Buffett bought Berkshire Hathaway in 1965 and turned it into the world's largest holding company. But he has said that Berkshire was "the dumbest stock I ever bought."

At the time of his purchase, Berkshire was a textile company. In retrospect, he says those textile assets "weren't any good." He tried to make a go of it as a textile business for 20 years, before finally giving up.

Over time, he managed to use Berkshire as a holding company and built his empire upon it. But he says he would have done even better had he never purchased Berkshire in the first place.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Not buying Walmart

Buffett has called passing on Walmart one of his worst "mistakes of omission."

In the 1990s, Buffett was on a buying binge and set out to buy 200 million shares of Walmart. But when the share price moved just a few cents above Buffett's ideal price, he balked.

Walmart was worth around $11.50 a share in the 1990s and today is worth around $80 a share.

Investing in Tesco

In 2012, Berkshire Hathaway owned 415 million shares in the British-based grocery chain Tesco. But two years later, Tesco overstated its profits and the share price tumbled, leaving egg on Buffett's face.

Buffett said he should have sold Tesco shares much earlier, and was "embarrassed" that he didn't. "I made a big mistake with this investment by dawdling," he said.

Being too slow to pull the trigger cost Berkshire an after-tax loss of around $444 million.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

Not buying Google

Buffett has said he only invests in companies that he understands. That means he traditionally has stayed away from investing in most technology companies.

Still, Buffett regrets not buying Google early on. Along with Walmart, Buffett has called Google one of his biggest missed opportunities.

Purchasing Dexter Shoe Co.

In 1993, Buffett purchased the now-defunct Dexter Shoe Co. for $433 million. The company went under less than a decade later.

Dexter Shoe ended production in the U.S. in 2001, and Berkshire folded what was left into the H.H. Brown Shoe Group.

Buffett later admitted in a 2007 letter to shareholders that Dexter didn't have a strong competitive advantage, which is why it failed.

Not buying the NBC TV station in Dallas-Fort Worth

Not all of Buffett's mistakes are related to losing money. Sometimes he regrets not spending money too.

Buffett says he missed out on buying the Dallas-Fort Worth NBC station for $35 million in 1972. As with Walmart, he recognized it as a great business with strong leadership, but still failed to pull the trigger.

Grow Your $$: 11 brilliant ways to build wealth after 40

Buying a large amount of ConocoPhillips

Buffett purchased 85 million shares of ConocoPhillips for $7 billion — only to watch energy prices fall dramatically in late 2008, which caused his shares' value to plummet to $4.4 billion.

In a Berkshire shareholder letter, Buffett shared that he had acted alone without the greenlight from Charlie Munger, his legendary business partner.

Not buying Amazon

Yes, Buffett has slept on more than one tech deal: In addition to not buying Google, he missed out on Amazon too.

Buffett passed on buying shares at Amazon's IPO in 1997. He later said in a 2017 interview, "I didn't understand the power" of Amazon. "So, it's one I missed big time," he added.

Buying US Airways stock

While buying US Airways stock wasn't a flat-out failure, Buffett does consider buying into this airline as part of his list of regrets.

He bought $358 million worth of stock in 1989, but those shares never appreciated. The airline merged with American Airlines in 2013.

While analysts believe Buffett probably got all of his principal back, the tycoon investor says things could have turned out much worse.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="http://www.sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account fees⁵ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> or overdraft fees⁶ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>. Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

Open your SoFi account and set up direct deposit

Not looking more deeply into Lubrizol Corp. stock

David Sokol, a chairman of several Berkshire Hathaway subsidiaries, once pitched Buffett on buying a controlling share of stocks in Lubrizol Corp.

Buffett did, but it was later discovered that Sokol owned stock in Lubrizol Corp. Sokol's failure to disclose this fact to Buffett violated insider trading laws.

When Buffett's firm purchased Lubrizol for $9 billion, Sokol earned a $3 million profit. The situation was revealed in 2011 and caused embarrassment for Buffett.

Buffett later said he regretted not looking more closely at the situation.

Buying Waumbec Mills

It's true: Buffett has purchased more than one failing textile company. First was Berkshire Hathaway in 1965, and then Waumbec Mills in 1975.

Based on "projected synergies," Buffett thought Waumbec Mills was a smart investment. However, by the mid-1980s, he exited the textile industry altogether and categorized it as a declining industry that could not compete with cheaper global competition.

Later, Buffett admitted that buying Waumbec was a horrible idea. He made the same investment mistake twice instead of learning from his purchase of Berkshire Hathaway and moving to a new strategy.

Bottom line

Even the greatest investors make mistakes. Buffett is proof that billionaire decisions can go wrong.

As you manage your money, try to learn from Buffett's missteps. Doing so can help you become more successful on your own journey to financial independence.

More from FinanceBuzz:

Invest in Paintings by Basquiat, Picasso, Banksy

Masterworks Benefits

Invest in art like a millionaire for a relatively low cost
Art investments have outperformed the S&P 500 by over 131% for 26 years
Purchase shares of artwork by top artists
Hedge against inflation and diversify your portfolio

Visit Masterworks