Warren Buffett Admitted He Was 'Too Dumb' And An 'Idiot' For Not Investing In Amazon Early On – But Finally Took The Plunge 5 Years Ago

Regret is a tough pill to swallow, especially in business, where missed opportunities can mean billions left on the table. Yet even the most legendary investors aren't immune to it. 

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Warren Buffett, the billionaire behind Berkshire Hathaway, has built his empire on sharp decision-making and a deep understanding of business fundamentals. He's undeniably one of the most successful investors of all time. But there's one major investment Buffett wishes he'd made sooner: Amazon. And he's not shy about admitting it.

Back in the mid-1990s, when Amazon was just an online bookstore with big dreams, Buffett had the chance to invest. He also passed on buying shares during Amazon's IPO in 1997. Reflecting on this now, Buffett doesn't shy away from admitting his mistake. "I was too dumb to realize" the potential of Amazon and its visionary founder, Jeff Bezos, he's said, with his usual blend of humility and humor. In fact, he's gone as far as to call himself an "idiot" for not snapping up Amazon shares earlier, confessing that it was his "stupidity" that kept him from seeing what Bezos was building.

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Buffett's regret isn't just about missing out on a financial windfall. It's also tied to his deep respect for Bezos, whom he describes as a thinker of rare clarity and brilliance. He's marveled at Bezos's managerial genius and how Amazon has shattered expectations, growing from a small startup into a massive powerhouse dominating the market. He even said in 2016, "you're not going to find another Jeff Bezos."

Despite his admiration for Bezos, Buffett's cautious approach to investing, particularly his wariness of high price-to-earnings (P/E) ratio stocks and tech companies, led him to hesitate. "I invest in what I understand," he's often said, and back then, technology was a world that felt outside his comfort zone.

But Amazon isn't the only tech giant Buffett regrets passing on. He's been just as upfront about missing out on early investments in Google and Microsoft – companies that have transformed the world in ways few could have predicted. Buffett didn’t hold back during a Berkshire Hathaway annual meeting, labeling these missed chances as "stupid mistakes." 

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However, it's important to remember that Buffett's investment strategy has always been about the long game, with a focus on businesses he deeply understands. That approach has served him and Berkshire Hathaway incredibly well over the decades, even if it meant occasionally leaving money on the table. In recent years, though, there's been a subtle shift. In 2019, Berkshire started buying Amazon shares – not because Buffett suddenly changed his mind, but because one of his investment managers saw its value. This move signals a broader recognition within Berkshire of technology companies’ undeniable influence in today's economy.

Buffett's openness about his missteps offers a valuable lesson: Even the best can get it wrong sometimes. What sets Buffett apart is his willingness to admit when he's made a mistake and his commitment to learning from those experiences. As he often reminds us, "The most important investment you can make is in yourself." It's a reminder that, in investing and in life, the ability to grow and adapt is as important as the ability to succeed.

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