62 years ago today, someone cheated Warren Buffett so he took his entire company
At the time, Buffett was just a minority shareholder in Berkshire Hathaway with a simple plan: buy cheap and sell high.But that's not how things turned outIn 1964, Berkshire's chairman Seabury Stanton verbally agreed to buy Buffett out at $11.50 per share. Then the letter arrived and it said $11.375. Twelve and a half cents shortBuffett didn't sell. Instead, he bought every share he could findTimeline:• 1962: Buffett buys into a dying New England textile mill at $7.50/share• 1964: Stanton asks Buffett his price. Buffett says $11.50. Stanton shakes on it• May 6, 1964: The letter arrives at $11.375. Buffett gets furious and starts buying everything he can• 1965: Buffett owns 38% of the company and takes control. Stanton is out• 1967: Berkshire buys its first insurance company, National Indemnity, for $8.6M. The pivot begins• 1985: The last textile mill closes. Berkshire is now a holding company• Today: BRK-A at $703,435/shareStanton tried to save $28,125 and ended up losing the whole company
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