Warren Buffett isn’t perfect either. Give yourself a break when you make a mistake.

I’ll admit, I’ve made my share of investing mistakes. Some cost my family a lot of money (for us, anyway). One shook me to my core and made me reevaluate my entire investment approach (more diversification, less hubris).

But I’m not alone. None other than Warren Buffett, the CEO Berkshire Hathaway (BRK.A -0.99%) (BRK.B -1.18%)openly discuss the mistakes he made. Knowing that the great Oracle of Omaha doesn’t always do good helps me loosen up, and you should do the same. Here are some words of wisdom from Buffett to help you the next time you’re kicking yourself.

Charlie’s legacy

Charlie Munger was Buffett’s business partner and lifelong friend, acting as a confidant and sounding board for nearly six decades at Berkshire Hathaway. In addition to the down-to-earth wisdom and folksy wisdom he offered Buffett (and the world), there was at least one thing his partner really appreciated. According to Buffett:

Charlie never sought to take credit for his role as creator, but instead let me bow and take the credit. In a way, his relationship with me was part older brother, part loving father. Even when he knew he was right, he gave me the reins, and when I was wrong, he didn’t… not — reminded me of my mistake.

The bold on the second “never” was in the original, probably to emphasize how important this act of omission was. Simply put, Munger understood that making mistakes is not only a part of life, but by extension, of investing as well. After all, people tend to learn by making mistakes.

Buffett keeps track so you can learn

Most investors, myself included, do not have the benefit of an investment partner like Charlie Munger. But fear not — Warren Buffett has another bit of wisdom that can help:

Over the years, I have made many mistakes. Consequently, our extensive collection of businesses currently consists of a few businesses that have really great economics, many that enjoy very good economic characteristics, and a large group that is marginal. Along the way, other businesses we invested in died, their products unwanted by the public.

A well-balanced portfolio will likely have some winners, some mediocre investments, and some losers. Just like the one Buffett built. And that’s okay. The idea is to try to minimize mistakes, not eliminate them entirely. If your goal was to never make mistakes, you would never buy stocks! And as I mentioned, if you learn from your mistakes, you can better recognize potential errors before you make them.

Sometimes even Buffett doesn’t learn

Learning from mistakes is an important part of investing, but sometimes we all need more than one lesson before we actually learn. Don’t beat yourself up if you find yourself making the same mistake again, even if you previously told yourself you’d “never do that again.” Why? Once again we can look at Warren Buffett.

Buffett takes a dim view of investing in the airline industry. But he did it several times. In 1989, Buffett made a loan to US Airways that brought Berkshire preferred stock. He told investors several times in the following years that he should not have done it. And when he exited with a modest profit about nine years later, he said he wasn’t interested in buying airline stock again.

Of course, you can never say never in investing. And despite the bad taste left by US Airways, Buffett jumped back into the sector in 2016, buying shares in American, Delta, Southwestand United. However, when discussing the investment at the 2017 annual meeting, he noted that “you couldn’t pick a tougher industry.” Basically, he knew before he went in that it might be a mistake, and he did it anyway. And in 2020 — the first year of the pandemic and stay-at-home orders that hampered the tourism industry — he sold out of the position at a loss. Some lessons have to be learned twice, it seems, even for investment legends like Warren Buffett.

Buffett is not perfect and neither are you

The point here is not to diminish Buffett’s record. The truth is that he made his shareholders huge amounts of money through his investment approach, despite the mistakes he made. You too can be a successful investor — but only if you give yourself the freedom to be a human being. You will make mistakes. Acknowledge it and accept it. Learn, of course. Diversify and keep the money you know you’ll need in the short term, so no stock will cost you sleep. But don’t let the fear of doing something wrong stop you from investing, even if you make the same mistake over and over again.

Remember, Buffett frequently talks about the mistake he made years ago, sinking more and more money into a struggling textile business called… Berkshire Hathaway. Look how it turned out.