Personal Finance

My Biggest Investing Regret of 2016


"In buying businesses, I've made some terrible mistakes, both of commission and omission."

--Warren Buffett, 2003 letter to shareholders

Even the smartest investors make mistakes. We Fools are certainly no exception. While we try our hardest to make the best decisions possible, we know that we will make our fair share of errors .

Looking back on 2016, I'm generally happy with the investing decisions I've made . However, the biggest mistake I made this year was an act of omission: I failed to take advantage of buying a great business at a great price.

Here's what happened.


Image Source: Getty Images.

Shareholders wound up rejecting Sanofi's offer, but that didn't keep the company's stock from roaring higher. A few months later, Medivation announced that it had accepted a buyout offer, but this time from Pfizer (NYSE: PFE) .

The price? A cool $14 billion, or $81.50 per share.

Sucking my thumb

Given my conviction for the company's stock and the huge premium paid by Pfizer to get the deal done, you'd think that I'd be doing victory laps over the news. That would have been true if I had ever gotten around to buying shares myself. Unfortunately, I never took my own advice to buy shares, which caused me to miss out on one of the best stocks of 2016.

Lesson learned: If I see a profitable, fast-growing company that is temporarily trading at a discounted price , then I shouldn't waste time. I should step in, buy shares, and hope for the best.

You can bet that I won't be making that mistake again.

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Brian Feroldi has no position in any stocks mentioned.Like this article? Follow him on Twitter where he goes by the handle@Longtermmindset or connect with him onLinkedInto see more articles like this.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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