Billionaire investment guru Warren Buffett says buying Berkshire Hathaway was a $200bn blunder and his "dumbest" ever purchase.
Speaking to CNBC, Buffett labels his 1964 decision to buy the textile company a $200bn blunder, which was sparked by a spiteful urge to retaliate against the Berkshire CEO.
Buffett says his investment would be "worth twice as much as it is now" if he had bought a good insurance company instead of dumping so much money into the ailing textile business.
"In 1964, we had quite a bit of stock. I went back and visited the management, Mr Stanton. And he looked at me and he said, ‘Mr. Buffett. We've just sold some mills. We got some excess money. We're gonna have a tender offer. At what price will you tender your stock?" he says.
"I said, ‘11.50'. And he said, ‘Do you promise me that you'll tender it 11.50?' And I said, ‘Mr. Stanton, you have my word that if you do it here in the near future, that I will sell my stock at 11.50'.
"(But) he chiseled me for an eighth. And if that letter had come through with 11 and a half, I would have tendered my stock. But this made me mad. So I went out and started buying the stock, and I bought control of the company, and fired Mr Stanton."
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