Doubted Buffett

My dumbest mistake was selling four Class B shares of Warren Buffett's Berkshire Hathaway company at $2,800. They've been above $4,000 recently. I seem to sell either too soon or not soon enough. But in the long

run, I am still ahead.

- Zemina, online

The Fool Responds: Bad timing is a common investor mistake. We often sell too soon, either due to panicking at a temporary downturn, or because we're not patient enough to wait for a stock to reach its true value. Often, we hang on too long, despite having lost confidence in the company's management and future. Sometimes we sell prematurely because a new (to us) and exciting stock has captured our imagination. You're right to look at the long run, though, because it's what really counts. As long as you're beating the market over many years, you're doing all right. If you're not, then consider investing in a simple broad-market mutual fund, such as one based on the S&P 500. It will let you roughly match the market's performance - which is enough to outperform most managed mutual funds!

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