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Cool story. I remember reading somewhere that Buffett said that he saw that the more mills Berkshire had the less profit it made, so the rational thing to do w
by hsjqllzlfkf 3y ago
Cool story.
I remember reading somewhere that Buffett said that he saw that the more mills Berkshire had the less profit it made, so the rational thing to do was close mills. Genius ;-)
- mhb 3y agoThat's a lot more interesting than the article.
- drited 3y agoBut he kept Berkshire going for years when it made little economic sense to do out of a sense of obligation?
- lkjldkjdfds 3y agoDidn't happen that way. Buffett noticed Berkshire's stock went up every time they sold a mill-- so he started buying it before it planned to sell another mill to make a quick buck. Then his dad died and Berkshire management slighted him by an 1/8th. So he used other people's money to buy management out in what he admits was an irrational mistake. He closed down his entire partnership at the same time. He actually lost a lot of money keeping Berkshire's mills afloat as opposed to just reinvesting all the money in other ventures, but felt a personal obligation to the workers.