Buffett’s Billion $ Mistake

Unlock 4 metrics + Buffett’s new buys

Author

Aakant Taurani
September 30, 2025

👋 Hi , it’s Aakant!

Would you rather buy:
an okay-ish company at an amazing bargain ,
OR
a wonderful company 💎 at an okay price?

Today, we're settling the debate between quality vs. bargain for good!

Stick around to discover our special announcement. Hint: It’s Warren Buffett's latest stock picks that's still trading at a value even his team couldn't resist. Intrigued? 😲

✨ What’s Inside This Issue?

✅ Why the price tag often lies and what really determines value
✅ Buffett’s big mistake that cost him billions 
✅ Your value-spotting toolkit: 4 metrics to look at to find value
✅ Warren Buffett’s speech at the University of Nebraska
✅ And more …

📊DEEP DIVE

Value vs. Price: Why the sticker isn’t the Value🏷️

In his early days, Buffett acquired Berkshire Hathaway, a struggling textile mill in a declining industry, mainly out of spite. It was a fair price for a weak business, but

It is a decision he regrets today. 💼

Problems plagued the company, losses were mounting, plants were shutting and it took him almost 20 years to pivot! Most importantly, he missed out on billions by not investing in other, much better companies!

This experience taught Buffett that buying a failing company, even cheaply, is a "bargain" trap. The capital invested in Berkshire could have flourished elsewhere, driving home the point: it's far better to invest in a wonderful business at a fair price than a fair one at a discount.

Thanks to this realization, Buffett shifted to seeking quality businesses, prioritizing solid management and promising futures. 📈

“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Warren Buffett

How To Actually Implement This (Quick Actionable Plan)⚡️

Company valuation can be vast, so we’re breaking it down. This week, let’s cover some basics.

Start on Yahoo Finance. Search for a company name or ticker that you are interested in, navigate down to find the “Compare” button, add the suggested competitors and look for these key metrics:

  • Revenue: Apart from a positive figure, look for upward trend indicating growth.

  • Operating Income: Ensure it’s stable or growing over time.

  • P/E: Also known as Price-To-Earnings ratio. A lower ratio than peers may signal undervaluation if all other ratios look good.

  • Free Cash Flow (FCF): 💸 Positive, growing FCF signals a cash-generating company.

Simply going through the above will give you a sense whether this company has any redeeming qualities. Next week, we’ll go in deeper details on what else to look for in evaluating companies.

☕FIND OF THE WEEK

Warren Buffett speaking at the University of Nebraska (2003): An absolute gem with wisdom on investing, building businesses, and even a few nuggets on parenting—plus answers to timeless questions straight from the students!

🥇 Next Week: Buffett's Playbook, Simplified

Imagine never having to guess what stocks Warren Buffett is buying or which ones he's quietly moving out of. Most investors chase headlines, hoping for clues. Next week, you'll get direct access to:

  • The exact stocks Berkshire is investing in right now - see precisely where the world's top investor is putting serious money (and discover possible opportunities to follow his lead).

  • Crystal-clear sales alerts: Know exactly which companies Buffett is selling, and how much - so you avoid the confusion of partial sales versus a full exit.

  • Long-term confidence, not short-term hype: Buffett picks stocks to hold through market ups and downs - not chase quick trends. Use this Playbook to zero in on investments designed for consistent, steady growth and financial peace of mind.

This isn't another generic "top 10 picks" list from the internet - it's Buffett's actual playbook, made simple for real life. Perfect for investors who want to build wealth the smart, steady way.

Check out the sample excerpt from the playbook below:

Watch for our next issue - you'll get access to the entire list of public companies that Buffett is buying, selling, and how you can apply these moves to your own portfolio!

And speaking of the next issue….

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To smarter (not harder) investing

See you next week!

- Aakant

Disclaimer:

The information provided in this newsletter is for educational and informational purposes only. It should not be considered financial advice. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We are not responsible for any investment actions taken by readers.