Jump to ContentJump to Main Navigation
Berkshire Beyond BuffettThe Enduring Value of Values$
Users without a subscription are not able to see the full content.

Lawrence Cunningham

Print publication date: 2014

Print ISBN-13: 9780231170048

Published to University Press Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231170048.001.0001

Show Summary Details
Page of
date: 14 December 2017

Origins

Origins

Chapter:
(p.9) 1 Origins
Source:
Berkshire Beyond Buffett
Author(s):

Lawrence A. Cunningham

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231170048.003.0001

This chapter describes the beginning of Warren Buffet’s relationship with Berkshire Hathaway. In 1956, twenty-six-year-old Buffett formed the investment firm Buffett Partnership Ltd., which later acquired Berkshire Hathaway, Inc. in 1965. At the time of its acquisition, Berkshire Hathaway was a New England textile manufacturer. The local press portrayed Buffett’s acquisition of Berkshire Hathaway as a hostile bid, stoking rumors that he was a takeover artist prepared to hasten the liquidation of the struggling company. Buffett recoiled at having a reputation as a liquidator and took pains to avoid acting like one. Yet Berkshire’s textile operations continued to decline for years as the forces of globalization hammered the industry. It was forced to curtail gradually operations through the 1970s, with Buffett finally shuttering the mills for good in 1985. Buffett’s acquisition of Berkshire was a great learning experience for him—learning what not to do. From then on, he made it Berkshire policy never to engage in hostile takeovers and vowed never to liquidate an acquired subsidiary. As a rule, Berkshire would acquire only companies with top management in place, to avoid having to arrange managerial shuffles. Above all, Berkshire would seek businesses with long-term economic value and willingly pay a fair price for them. The remainder of the chapter details Berkshire’s acquisitions from the 1960s through the 1980s.

Keywords:   Warren Buffett, Buffett Partnership Ltd, Berkshire Hathaway Inc, acquisitions

University Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .