Buffett’s analysis was correct. His temper was not, and the bill ran into billions (opens the source in a new tab)
- In 1964 a 12.5¢-a-share cut to an agreed price annoyed him into taking control of Berkshire’s failing textile mill.
- Buying National Indemnity for Berkshire, not his partnership, diverted about $100bn to strangers, he estimates.
- His 2014 letter: volatility isn’t risk; trading, timing, fees and borrowed money ruin returns.
- ~$100bn
- his estimated cost
- $5.7bn
- Dexter Shoe, in shares
- 19.4%
- book value a year, 50 yrs
Why it matters His numbers were right; ego made the costly calls.
Other side Survivorship bias? One legend’s lessons may not fit investors without his patience or capital.