Berkshire Hathaway Inc. (BRK.A): One Crucial Investing Lesson Warren Buffett Learned … at 11 Years Old

In fact, after the S&P 500 dropped more than 50% from the beginning of 2008 through early 2009, Buffett was the one reassuring investors everything would be OK when he released that’s year’s letter to Berkshire Hathaway Inc. (NYSE:BRK.A) shareholders on Feb. 28, 2009:

The market value of the bonds and stocks that we continue to hold suffered a significant decline along with the general market. This does not bother Charlie [Munger] and me. Indeed, we enjoy such price declines if we have funds available to increase our positions. Long ago, Ben Graham taught me that “Price is what you pay; value is what you get.” Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.

Foolish takeaway
Those of you keeping track know the S&P 500 has more than doubled since then and currently sits near all-time highs.

Better yet, truly Foolish investors know all too well there were a significant number of beaten-down stocks around that time that have absolutely trounced the broader market’s perfectly respectable return over the same period.

But in the end, those gains were reserved only for those who had managed to learn the lesson Warren Buffett first encountered as a child.

The article 1 Crucial Investing Lesson Warren Buffett Learned … at 11 Years Old originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Berkshire Hathaway.

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