Warren Buffett, a famous investor, learned a big lesson about investing! He used to buy cheap stocks, hoping to make a quick profit. He compared it to finding a nearly-smoked cigar butt on the street – you get one last puff, then it's gone.
- Buffett wasted years on 'soggy' stocks.
- He realized that strong, growing companies are better investments.
- Time helps good businesses grow, but hurts bad ones.
| Lesson Learned | Example |
|---|---|
| Don't buy just because it's cheap. | Buffett bought a struggling textile company, and it didn't grow. |
| Focus on good companies. | Companies that are successful and keep getting bigger are the best choices. |
