The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP038: Berkshire Hathaway (BRK.B): From Buffett to Abel w/ Daniel Mahncke & Shawn O’Malley
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Sep 21, 2025 Explore the fascinating transformation of Berkshire Hathaway from a struggling textile mill to a colossal investment powerhouse under Warren Buffett and Charlie Munger. Discover why Buffett is drawn to insurance and energy sectors, and how his unique strategies have driven growth through acquisitions. Dive into Berkshire's decentralized culture and the implications of Buffett’s eventual retirement on the company's future. Gain insights into the current valuation and whether it continues to be an attractive investment opportunity.
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How Buffett Took Over Berkshire
- Buffett first bought Berkshire as a cigar-butt play and nearly sold after a promised price mismatch.
- He refused the slight price cut, doubled down, and eventually took control of the company.
Float Became Berkshire’s Superpower
- Acquiring a small insurance firm introduced float, enabling Berkshire to invest other people's money at low cost.
- Consistently profitable underwriting turned float into a long-term, cheap funding source for acquisitions.
See's Candy Changed Buffett's Strategy
- Buffett and Munger bought Blue Chip Stamps and used its float to buy See's Candies, a pivot to quality businesses.
- See's taught Buffett pricing power beats cheap cigar-butt bargains over the long run.
