# Buffett: Stop digging when in a hole, cut losses

2026-08-07T23:04:38+00:00 | World & Diplomacy | Indian Opinion Desk

Corroboration: 1 independent outlet

Warren Buffett's advice to stop digging when in a hole is a lesson in cutting losses, the Times of India reports. Buffett explained the rule in a 1990 letter to Berkshire Hathaway shareholders, referring to insurance executives who kept lowering prices despite losses. He himself fell into the trap with Berkshire Hathaway, a failing textile company he bought in 1962, pouring money into it before finally stopping. The lesson applies to life and business: recognise mistakes, swallow pride, and move on.

## Coverage

- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/world/us/quote-of-the-day-by-warren-buffett-the-most-important-thing-to-do-if-you-find-yourself-in-a-hole-is-to-stop-digging-and-a-useful-business-lesson/articleshow/133041910.cms>

Tags: business lesson, cutting losses, investing, psychology, sunk cost, Warren Buffett
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