We Study Billionaires - The Investor’s Podcast Network

TIP443: Buffett's Biggest Blunders w/ David Kass

Apr 29, 2022
Guest
David Kass
Trey Lockerbie chats with Dr. David Kass, an economist and professor at the University of Maryland, known for his expertise on Warren Buffett. They dive into Buffett's emotional pitfalls, notably his costly acquisition of Berkshire Hathaway and notorious missteps like overpaying for Precision Castparts. Dr. Kass reveals how investing in insurance could have earned Buffett billions more and discusses his missed opportunities with tech giants like Google and Amazon. Listeners gain fascinating insights into the emotional and strategic aspects of investing.
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ANECDOTE

Berkshire Hathaway: A Spiteful Purchase

  • Buffett bought Berkshire Hathaway out of spite after Seabury Stanton lowered his buyout offer price.
  • This emotional decision led to a significant loss as the textile industry declined.
INSIGHT

Repeating Mistakes in Textiles

  • Buffett repeated his textile industry mistake by purchasing Waumbec Mills 13 years after Berkshire Hathaway.
  • He was drawn to low valuations without fully appreciating the industry's rapid decline.
ANECDOTE

ConocoPhillips: A Misjudged Energy Play

  • In 2008, Buffett invested heavily in ConocoPhillips, betting on future energy prices.
  • This resulted in a multi-billion dollar loss for Berkshire Hathaway as energy prices moved unfavorably.
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