TIL in 1962, investor Warren Buffett agreed to selling shares of a failing company for $11.50 per share. The tender...

TIL in 1962, investor Warren Buffett agreed to selling shares of a failing company for $11.50 per share. The tender offer was for only $11.375, so Buffett decided to buy more stock, took control of the company and fired the man who made the offer.

View Reddit by unknown_humanView Source


  • And by his own estimation, cost himself $200 billion of future interest. Wow.

  • …What?

  • I remember reading this in the Snowball Effect. Warren Buffet had traveled a long way to talk with Stanton, who was already an old guy that was probably going to retire soon anyways. They shook hands and had a verbal agreement, but Stanton renegged and “lowballed” Warren in writing later. Imagine traveling all the way out to the middle of bumfuck nowhere, making a deal with an old-school businessman, going back home to a different state, and then seeing that you got lowballed and lied to after all that effort? Nebraska and Massachusetts are not close. Buffet was PO’d and decided to be more aggressive. I always wondered if maybe Stanton had simply forgot what they had initially agreed to. Stanton was 72 years at the time after all. He actually died like 7 years later.

    Berkshire had a whole board to manage the company at the time, and when Buffet had enough shares he automatically joined the board. I always imagined how interesting that first board meeting must have been been. Imaging the tension of these old school guys watching an outside investor just walk in and take over. Crazy

  • Saw the HBO doc on him last night. He also mentioned that this happened 5 days after his father died, and it seemed clear he thought that he was transferring his emotions over his dad into anger towards this guy.

  • In 2010, Buffett claimed that purchasing Berkshire Hathaway was the biggest investment mistake he had ever made, and claimed that it had denied him compounded investment returns of about $200 billion over the subsequent 45 years.[10] Buffett claimed that had he invested that money directly in insurance businesses instead of buying out Berkshire Hathaway (due to what he perceived as a slight by an individual), those investments would have paid off several hundredfold.

  • Never mess with a man with fuck-you money.

  • *That’s So Warren.*

  • Your title is bad and you should feel bad

  • okay… so what were the implications of this decision???

  • When you’re rich, you can buy anybody out and do whatever you want. It’s a way the rich can get richer.

  • These are the people that really run the show. It’s their way or you’re out. Terrifying.

  • Buffet explains the whole situation as he saw it in his 2014 letter to Berkshire Hathaway investors. Starts page 24.

  • This is what Trump thinks he is…

  • TLDR;

    1) The title is wrong

    2) This trade was a mistake that cost him dearly.

Leave Your Comment