Warren Buffett was smiling today at the White House as Barack Obama presented him with the nation’s highest civilian honor, the Presidential Medal of Freedom.
And the audience laughed as President Obama recounted recounted one of Buffett’s earliest investing mistakes:
In 1942, an 11-year-old boy from Omaha, Nebraska, invested his entire fortune in six shares of Cities Service Preferred at $38 per share. The stock soon dropped sharply, devastating his holdings. (Laughter.) But true to form, the boy did not panic. He held those shares until the stock rebounded, earning himself a small profit. Things got a little bit better after that. (Laughter.)
Einhorn’s FOF Re-positions Portfolio, Makes New Seed Investment In Year Marked By “Speculative Exuberance”
It has not just been rough year for David Einhorn's own fund. Einhorn's Greenlight Masters fund of hedge funds was down 3% net for the first half of 2020, matching the S&P 500's return for those six months. In his August letter to investors, which was reviewed by ValueWalk, the Greenlight Masters team noted that Read More
But that story also has a more serious side.
In The Snowball, biographer Alice Schroeder writes that the young stockpicker sold for a small profit at $40 per share, in part due to pressure from Doris, his sister and partner in the deal. It then soared to $202 a share.
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