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How Warren Buffett's 'mistake,' Berkshire Hathaway, became the foundation of his career
Buffett likely eyeing banks as coronavirus ravages economy
Smead Capital Management founder Bill Smead discusses where Berkshire Hathaway CEO Warren Buffett may find opportunities during the coronavirus pandemic and whether Buffett is buying on the market’s worst days.
In the 1960s, Warren Buffett made what he would later call "a monumentally stupid decision."
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However, it was also the foundation of the rest of his career.
Buffett, now 89, known as the "Oracle of Omaha," is the CEO of Berkshire Hathaway. He is considered one of the most successful investors of all time and is estimated to be worth $72 billion, according to Forbes.
But in 1962, Berkshire Hathaway was a failing textile company with cheap stock and Buffett was running a small investing entity called Buffett Partnership Ltd.
In 2010, Buffett told CNBC that Berkshire Hathaway was "the dumbest stock I ever bought."
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"It was a huge company originally, and they kept closing one mill after another," Buffett told the business channel. "And every time they would close a mill, they would — take the proceeds and they would buy in their stock. And I figured they were gonna close, they only had a few mills left, but that they would close another one. I'd buy the stock. I'd tender it to them and make a small profit."