If you think you made a wrong decision in investments, you are not alone. Even Mr. Buffett makes wrong decisions. The difference is that he can cope it, not many can do like that.

"Mr. Buffett said he made at least one major investing mistake last year by buying a large amount of ConocoPhillips [COP-N] stock when oil and gas prices were near their peak. Berkshire increased its stake in ConocoPhillips from 17.5 million shares in 2007 to 84.9 million shares at the end of 2008.
Mr. Buffett said he did not anticipate last year's dramatic fall in energy prices, so his decision cost Berkshire shareholders several billion dollars."

Full article
http://business.theglobeandmail.com/servlet/story/RTGAM.20090228.wrbuffett0228/BNStory/Business/home

http://economictimes.indiatimes.com/Features/Warren-Buffet/Ajit-Jain-may-succeed-Buffett-in-Berkshire/articleshow/4207941.cms



Ajit Jain may succeed Buffett in Berkshire Hathaway


1 Mar 2009, 1348 hrs IST, PTI

NEW YORK: Legendary investor Warren Buffett has blamed himself for making certain \"dumb\" investment decisions last year and has hinted at
India-born Ajit Jain becoming the possible successor for his businesses.

Warning that the downturn could well continue for a longer time, Buffett has said the economy would be in shambles throughout 2009.

\"During 2008, I did some dumb things in investments. I made at least one major mistake of commission and several lesser ones that also hurt.

\"Furthermore, I made some errors of omission, sucking my thumb when new facts came in that should have caused me to re-examine my thinking and promptly take action,\" the much revered investor wrote in his annual letter to the shareholders.

Showering praise on Jain, who handles the reinsurance division, Buffett noted that there is no one like him and added that his business is \"never the same\".

\"Ajit came to Berkshire in 1986. Very quickly, I realised that we had acquired an extraordinary talent. So I did the logical thing: I wrote his parents in New Delhi and asked if they had another one like him at home.

\"Of course, I knew the answer before writing. There isn't anyone like Ajit,\" Buffett said.

Buffett noted a major mistake was buying ConocoPhillips shares when oil and gas prices were near their peak.

\"I in no way anticipated the dramatic fall in energy prices that occurred in the last half of the year... Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars,\" he said.

According to him, \"other already-recognisable errors\" committed include buying shares of two Irish banks'.

\"During 2008, I spent 244 million dollars for shares of two Irish banks that appeared cheap to me.

\"At year end, we wrote these holdings down to market: 27 million dollars, or an 89 per cent loss. Since then, the two stocks have declined even further. The tennis crowd would call my mistakes unforced errors,\" Buffett said.

He noted that derivatives are \"dangerous\" and that they have increased the leverage and risks in the financial system.

On derivatives contracts, Buffett said they go unsettled for years, with counterparties building up huge claims.

\"... a frightening web of mutual dependence develops among huge financial institutions. Receivables and payables by the billions become concentrated in hands of a few large dealers who are apt to be highly-leveraged in other ways.

\"Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: Its not just whom you sleep with, but also whom they are sleeping with,\" he added.

-----------------------------------------------------------------
Sunny Leone a true Canadian DESI now back in India !.