Warren Buffett’s Biggest Mistake Berkshire Hathaway

Warren Buffet’s Biggest Mistake Berkshire Hathaway

Warren Buffett is the legendary investor also known as Oracle of Omaha. He is today world’s third richest person. And he is the most successful investor ever.

However, Warren Buffett commits to CNBC that, buying a textile company Berkshire Hathaway in 1964 was his biggest US $ 200 Billion blunder. Because if he has invested that money to buy some insurance company than today Berkshire Hathaway would be $ 200 Billion more worth.

Buffett commits that, is he had used that money to buy some insurance company rather than the dying textile company than today the scene was different.

Buffett Says,

The— the dumbest stock I ever bought— was— drum roll here— Berkshire Hathaway.  And— that may require a bit of explanation.  It was early in— 1962, and I was running a small partnership, about seven million.  They call it a hedge fund now.

And here was this cheap stock, cheap by working capital standards or so.  But it was a stock in a— in a textile company that had been going downhill for years.  So it was a huge company originally, and they kept closing one mill after another.  And every time they would close a mill, they would— take the proceeds and they would buy in their stock.  And I figured they were gonna close, they only had a few mills left, but that they would close another one.  I'd buy the stock.  I'd tender it to them and make a small profit.