On today’s episode, Clay Finck reviews Michael Batnick’s book, Big Mistakes: The Best Investors and Their Worst Investments. One of the best ways to become a better investor is to learn from our own mistakes. The second best (and less costly) way is to study the mistakes of others. If you want to learn from the mistakes of the world’s greatest investors, then this episode was made for you.IN THIS EPISODE YOU’LL LEARN:00:00 - Intro.01:24 - Lessons from Batnick’s book from studying the mistakes of the world’s greatest investors.02:18 - How Benjamin Graham lost substantial capital during the great depression.07:14 - How Jesse Livermore taught us to always limit the potential downside.12:49 - How Long-Term Capital Management went from billions in AUM to zero almost overnight.16:40 - Michael Steinhardt’s mistake of stepping outside of his circle of competence.26:24 - What the endowment effect is.27:20 - Warren Buffett’s biggest blunder.29:57 - How Bill Ackman became publicly attached to a short position that went against him.37:32 - How Stan Druckenmiller got suckered into the 1999 tech bubble.49:21 - The dark side of concentrated investing.54:50 - How Keynes transitioned from being a macro investor to a bottoms up value investor.Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.BOOKS AND RESOURCESCheck out our TIP Mastermind Community.Michael Batnick’s book, Big Mistakes.Check out our previous episode: WSB577: Valuation Masterclass w/ Aswath Damodaran or watch the video here.Follow Clay on Twitter.NEW TO THE SHOW?Check out our We Study Billionaires Starter Packs.Browse through all our episodes (complete with transcripts) here.Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.Enjoy exclusive perks from our favorite Apps and Services.Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.Learn how to better start, manage, and grow your business with the best business podcasts.P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!SPONSORSInvest in Bitcoin with confidence. Get $5 in Bitcoin when you invest $100 with River.Reach the world’s largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!Invest in some of the top private, pre-IPO companies in the world with Fundrise.Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.Send, spend, and receive money around the world easily with Wise.Be confident that you’ll be small businessing at your best with support designed to help you reach your goals. Book an appointment with a TD Small Business Specialist today.Start, run, and grow your business without the struggle. Be in control of every sales channel with Shopify. Sign up for a $1 per month trial period today.Choose Toyota for your next vehicle – SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.Beat FOMO and move faster than the market with AlphaSense.Get a customized solution for all of your KPIs in one efficient system with one source of truth. Download NetSuite’s popular KPI Checklist, designed to give you consistently excellent performance for free.Learn how Principal Financial can help you find the right benefits and retirement plan for your team today.Support our free podcast by supporting our sponsors.HELP US OUT!Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!See Privac