Warren Buffett says people who build lasting wealth usually avoid these 5 costly mistakes

Warren Buffett says people who build lasting wealth usually avoid these 5 costly mistakes
Over the years, I’ve read countless articles, listened to dozens of interviews, and sifted through Buffett’s letters to shareholders. What strikes me most is his emphasis on avoiding costly mistakes rather than chasing risky gains.

Here’s what I’ve discovered about the five common mistakes Buffett says people who achieve lasting wealth usually steer clear of.

This simple guideline forces investors to slow down and do their homework. According to a survey by Finder, nearly 32% of investors admit they’ve invested without proper research, a decision often leading to significant losses. Buffett’s approach isn’t flashy—it doesn’t chase quick wins—but understanding where your money goes is fundamental to building enduring wealth.

1. Chasing quick returns

2. Letting emotions dictate decisions

3. Ignoring diversification

4. Neglecting the power of compounding.