Topic
43 facts from 9 episodes, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
1888
Hathaway Manufacturing Company, a New Bedford textile maker and Berkshire Hathaway's ancestor, was founded in 1888 by Horatio Hathaway and Joseph Knowles.
“in 1888 after the whaling business was in decline thankfully because it was horrible horatio hathaway and joseph knolls found hathaway manufacturing company”
1959
The host calculates Buffett's blended return across the partnership years and Berkshire at 22.3% annually over 63 years.
“Berkshire over that time period has had a 20% IRR. You get a blended IRR of 22.3% across 63 years of active money management for Warren.”
1960s
When Buffett bought into Berkshire, its book value was about $20 a share while the stock traded at about $7.50.
“the book value of all the property plant and equipment and cash on hand at this company is 20 a share and the stock is trading at 750”
1965
Warren Buffett won a seat on Berkshire's board in April 1965 and the next month removed Seabury Stanton and became chairman.
“by april 1965 warren gets enough shares to get himself elected to the board the next month he stages a boardroom coup essentially”
1967
In 1967 Buffett bought National Indemnity from Jack Ringwalt on a one-page deal with no audited financials, promising to keep it in Omaha and keep its employees.
“they hammer out a one-page deal at the price ringwall wanted no audited financials uh promise to keep the company in omaha promise not to fire any employees”
1970
When the partnership was wound up in 1970, Buffett received about $16 million in cash, 18 percent of Berkshire Hathaway and 20 percent of Diversified Retailing Company.
“he owns 26 of the partnership he gets 16 million in cash 18 of berkshire 20 of diversified retail company”
1970
Berkshire Hathaway stock was $45 a share on January 1, 1970, when Buffett distributed it to partners, and $11,750 per A share at the end of 1992.
“if you had bought Berkshire in 1970 on January 1st, which is the day that Buffett distributed it out to everyone when he closed down the partnership, it was $45 a share.”
1980s
Berkshire Hathaway invested $517 million in Capital Cities to help it buy ABC.
“So he invests $517 million in cap cities to help them buy ABC.”
1983
Blue Chip Stamps was merged into Berkshire Hathaway in 1983, after legal matters from the SEC investigation were resolved.
“make it a goal to merge blue chip into Berkshire as soon as all of the remaining kind of legal suits wind up and settle here. That actually takes a while, but it finally does happen in 1983.”
1985
Warren Buffett hired Ajit Jain in 1985 to run Berkshire Hathaway's insurance businesses.
“He hired Ajit Jain to run Berkshire's insurance businesses.”
1986
Warren Buffett wrote a letter to Ralph Schey offering $60 a share for Scott Fetzer, and Berkshire bought the company at that price in 1986.
“I said we'll pay $60 a share if you like this idea I'll meet you in Chicago on Sunday and if you don't like the idea tear up this letter”
1987
In September 1987 Berkshire Hathaway bought $700 million of convertible preferred stock in Salomon Brothers.
“Berkshire buys seven hundred million dollars of convertible preferred stock in Salomon.”
1987
Berkshire Hathaway bought about $1.2 billion of Coca-Cola stock, around 6% of the company, in 1987.
“He buys 1.2 billion worth of stock on the open market in 1987, which equates to 6% of the company.”
1988-1994
Berkshire Hathaway built a stake of roughly $1.3 billion in Coca-Cola over the next few years, from 1988 to 1994, and the hosts say it owns about 9.5% of the company today.
“a roughly $1.3 billion equity stake in the company over the next few years”
1993
The host calculates that Berkshire Hathaway's stock returned about 13.5% annually from January 1993 to the recording date.
“it's just the numbers that I ran for this last period, 1993 through today, is a 13.5% IRR.”
1995
Berkshire Hathaway bought the half of GEICO it did not already own for $2.3 billion in 1995.
“And then in 1995, Berkshire buys the rest of Geico that it doesn't own for $2.3 billion.”
1996
In 1996 Berkshire Hathaway created a Class B share, tracking one-thirtieth of an A share, in an open-ended offering.
“he is going to do a stock offering for a new class of shares, what he's going to call the baby B class of shares”
1998
In 1998 Berkshire Hathaway agreed to buy General Re, a large reinsurer, for $22 billion in stock.
“Berkshire is going to buy Genry, one of the world's largest reinsurers for $22 billion.”
1998
General Re took a roughly $300 million underwriting loss tied to the Unicover insurance scheme right after Berkshire bought it.
“They immediately take a $300 million underwriting loss.”
1999
Berkshire Hathaway bought MidAmerican Energy Holdings, a utility company, in 1999.
“He buys Mid-American Energy Holdings.”
2008
Berkshire Hathaway provided $6.5 billion of financing for Mars's 2008 acquisition of Wrigley, including debt at an 11.45% interest rate.
“they invest $6.5 billion to fund this deal of Mars, not Berkshire, buying Wrigley.”
2008
In September 2008 Berkshire Hathaway invested $5 billion in Goldman Sachs preferred stock with a 10% dividend plus warrants at a $115 strike price.
“Berkshire invests $5 billion for preferred equity in Goldman with a 10% annual dividend.”
2008
On October 1, 2008 Berkshire Hathaway invested $3 billion in General Electric with a 10% coupon and warrants at $22.25 per share.
“On October 1st, Berkshire invests $3 billion in GE for basically the same deal.”
2008
During the 2008 financial crisis Berkshire Hathaway deployed about $18 billion of its $37 billion in cash.
“Berkshire would deploy about $18 billion of the $37 billion of cash that it had on hand.”
2008
Berkshire Hathaway's $4.4 billion of debt financing for the Wrigley deal carried an 11.45% interest rate.
“the $4.4 billion in debt that Berkshire invested had an 11.45% interest rate.”
2010
Berkshire Hathaway hired Todd Combs, a 39-year-old manager of Castle Point Capital, in 2010 as an investment manager.
“39-year-old Todd Combs, a completely and totally unknown manager of a small hedge fund based in Connecticut called Castle Point Capital.”
2011
Berkshire Hathaway's 2011 $5 billion preferred stock and warrant deal with Bank of America has produced about $26 billion in profit.
“They all in to date, Berkshire has made about $26 billion in profits on the B of A deal.”
2011
Berkshire Hathaway acquired the chemical company Lubrizol for $9 billion in 2011, after executive David Sokol bought Lubrizol shares before suggesting the deal.
“Berkshire acquires, fully acquires a chemical company named Lubrizol for $9 billion.”
2012
Jim Weber said Warren Buffett phoned to propose spinning Brooks out of Fruit of the Loom as a standalone Berkshire Hathaway subsidiary.
“I'm thinking about spinning you out and setting you up as a standalone subsidiary.”
2014
Berkshire sold its Graham Holdings stake in 2014 for $1.1 billion, from an initial $10 million investment, a roughly 12% annual return before dividends.
“Berkshire sells its stake for $1.1 billion, which is only a 12% IRR from the initial $10 million investment.”
2015
Berkshire Hathaway acquired Precision Castparts for $37 billion in 2015, its largest deal, and later took a roughly $10 billion writedown.
“Berkshire acquires the aircraft parts manufacturer Precision Cast Parts for $37 billion in Berkshire's largest deal ever.”
2015
Charlie Munger said Berkshire invested about $30 billion in Apple, not hundreds of billions.
“We didn't put hundreds of billions of dollars into it. Tens of billions. We put a 30 billion into it.”
2018
In January 2018 Berkshire Hathaway appointed Greg Abel vice chairman of non-insurance businesses and Ajit Jain vice chairman of insurance businesses.
“Berkshire officially appoints Greg and Ajit to vice chairman roles in the company.”
2021
At the 2021 annual meeting Charlie Munger said Greg Abel would preserve Berkshire's culture, effectively revealing him as the successor to Warren Buffett.
“Charlie lets it slip that shocker, Greg Gable is the name in the envelope.”
Undated
Brooks Running became part of Berkshire Hathaway through its purchase of Fruit of the Loom, in what the hosts describe as an accidental acquisition.
“They were like accidentally bought by Berkshire as part of a Fruit of the Loom roll-up, and they were sort of this bland nothing brand.”
Undated
Two years after buying Brooks, Russell Athletic was itself bought by Fruit of the Loom, which was already owned by Berkshire Hathaway.
“So two more years pass. Business continues to grow. Russell gets bought by Fruit of the Loom.”
Undated
Charlie Munger said Berkshire-related investors bought a Baltimore department store chain, realized it was a mistake, and reversed the deal.
“We bought this little pissant department store chain in Baltimore. Big mistake. Too competitive.”
Undated
Charlie Munger said Japanese interest rates were about half a percent a year for ten years, enabling Berkshire's Japanese trading house investment.
“The interest rates in Japan were half a percent per year for 10 years.”
Undated
Charlie Munger said See's Candies, bought for $20 million, was Berkshire's first acquisition in the brand category.
“Well, it's hard for us not to love brands. Since we were lucky enough to buy the Seas candy for $20 million as our first acquisition.”
Undated
A host said Berkshire's roughly $270 million investment in BYD had grown to about $8 billion.
“I think you've invested something like 270 million that's now worth something like 8 billion in BYD.”
Undated
Charlie Munger said he thought Berkshire Hathaway would have survived even if its Salomon Brothers investment went to zero.
“Not so much. I think we would have survived.”
Undated
Charlie Munger said launching a Sunday edition of the Buffalo Evening News began a fight with the rival paper, which went broke.
“There were two newspapers in that town. And we started a Sunday edition, and that started a holy war, and the other guy went broke.”
Undated
Berkshire Hathaway paid $25 million for See's Candies, which David says has since returned at least $2 billion in cash.
“they only paid 25 million for the the company”
Episodes