Becoming Berkshire

In 1969, Warren Buffett and Charlie Munger redirected their capital away from stripped-down sectors like textiles and retail—seeking businesses with resilience, reliable cash flow, and fulfillment of Berkshire’s long-term vision. That quest led them to the Illinois National Bank of Rockford, run by Eugene Abegg—a vivid character who carried large sums in cash, rented safe deposit boxes at cocktail parties, and even printed his own ...

In 1969, Warren Buffett retired from managing money and dissolved his partnership, shifting his focus more towards Berkshire Hathaway. This decision occurred during a period of significant economic change marked by the onset of "stagflation" and sharp drawdowns for "high-flying go-go stocks", as Buffett found the investing environment increasingly "negative and frustrating" and struggled to find new opportunities that aligned with ...

1968 was a year of profound upheaval for the United States and Wall Street, marked by assassinations, widespread social unrest, and a "back-office crisis" that overwhelmed manual trading systems. Amidst this national and financial turmoil, Warren Buffett's disciplined partnership delivered an impressive 45% return, significantly outperforming the modest gains of the Dow Jones. This strategic steadfastness was exemplif...

Welcome to episode 11, where we delve into the transformative 1967 acquisition of National Indemnity (NICO) by Berkshire Hathaway for $8.6 million. This pivotal move marked Berkshire's strategic shift from its struggling textile operations, which Warren Buffett was actively shrinking due to mounting costs and competition. The acquisition was fundamentally driven by the significant "float" NICO provided, offering Berks...

Welcome to Becoming Berkshire Episode 10! Today, we're delving into the pivotal year of 1967 for Berkshire Hathaway, a period that marked its transformation into the diversified powerhouse it is today.In 1967, Warren Buffett faced significant challenges in deploying capital. The market environment was changing, with a new generation of money managers emerging, many of whom were far removed from the traumatic experiences of the ...

Welcome to Episode 9 of Becoming Berkshire! As we continue our journey through 1966, a pivotal year for Warren Buffett and Berkshire Hathaway, we're diving deep into one of his most fascinating early investments: his acquisition of 5% of The Walt Disney Company. This period also saw Berkshire Hathaway pay its only dividend of 10 cents per share, signaling Buffett's active exploration of new capital allocation avenues. You&#...

The year 1966 was marked by a fluctuating stock market, with the Dow Jones Industrial Average briefly breaching the 1,000 mark for the first time before closing significantly lower, while the Buffett Limited Partnership achieved a 20.4% return, outperforming the Dow. During this period, Warren Buffett took control of Berkshire Hathaway and, for the first time, partnered with Charlie Munger on a business venture to acquire the Hochs...

https://open.substack.com/pub/theweekendinvestor/p/becoming-berkshire-1964-buffetts?r=21sroa&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

In 1964, Warren Buffett continued to build his partnership (Buffett Partnership Limited or "BPL"), focusing on investment strategies that included "Generals," "Workouts," and "Controls," while criticizing institutional management for groupthink and advocating for independe...

Welcome to Episode 5 of Becoming Berkshire, as we look at the fascinating story of the American Express salad oil scandal, which almost brought down the New York Stock Exchange (NYSE). We also get to witness the beginning of Buffett’s investment ideology evolving as he starts to be influenced by Charlie Munger.

https://open.substack.com/pub/theweekendinvestor/p/becoming-berkshire-196364-the-american?r=21sroa&utm_campaign=pos...

Explore the world of Warren Buffett's investment strategies in 1963, a year marked by significant historical events. This discussion delves into insights from Buffett's BPL letter, highlighting the extraordinary power of compounding through a compelling example. Discover his framework for identifying investment opportunities, categorized into three main approaches:

1. Generals: This approach focuses on undervalued stocks purchased ...

This episode explores Warren Buffett's early years as a money manager and how his investment style evolved. Initially, he followed Ben Graham's principles, focusing on "cigar butt" investments—stocks that were very cheap and trading below their intrinsic value.

Buffett began questioning traditional views of conservative investing, particularly the risks of purchasing "blue-chip" securities without regard for price-to-earnings ratios...

https://open.substack.com/pub/theweekendinvestor/p/becoming-berkshire-columbia?r=21sroa&utm_campaign=post&utm_medium=web&showWelcomeOnShare=false

In this episode of Becoming Berkshire, we rewind to Warren Buffett’s formative years at Columbia Business School, where he met the man who would forever shape his investment philosophy: Benjamin Graham. We explore how Buffett’s time under Graham’s mentorship laid the intellectu...

In this debut episode of Becoming Berkshire, we explore the formative years of Warren Buffett, from his birth in 1930 through his teenage ventures. Discover how a young boy from Omaha developed a fascination with numbers, made his first stock purchase at age 11, and laid the groundwork for what would become an unparalleled investment legacy.

Check out the Substack Issue: https://theweekendinvestor.substack.com/p/becoming-berkshire-a...