Warren BUFFETT

Redwing · 31st Oct, 2006

Located this on a NZ Site..some interesting video play

Warren Buffett - The Man: View HERE ( 56 minutes long )

Warren Buffett - The Business: View HERE ( 56 minutes long )

Warren Buffett - The Gift: View HERE ( 56 minutes long )

Glebe · 1st Nov, 2006

Mark L has provided the links to these previously. But no harm in having them linked again because they're a great watch

Redwing · 1st Nov, 2006

I knew I'd seen them somewhere else...should've looked here ;o)

Redwing · 30th Sep, 2023

Most know Warren Buffett and Charlie Munger, but there was a third partner

Rick Guerin partnered up with Buffett and Munger in the 1970s

It’s a little-known fact that Warren Buffett and Charlie Munger had another partner back in the 1970s named Rick Guerin. Rick ran his own fund called Pacific Partners but worked with Munger and Buffett to gradually acquire a controlling interest in a company called Blue Chip Stamp
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s.

Blue Chip Stamps was a small company that issued trading stamps that merchants like grocery stores distributed based on their sales, allowing customers to redeem for merchandise. These were the first “loyalty points” programs for a better comparison.
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After acquiring Blue Chip Stamps, the three investors used the “float” of the company, which is the cash accumulated between the stamps issued and stamps collected, to fund other acquisitions. The main acquisition they then partnered on was See’s Candy in 1972 for $25 million. In fact, Munger, Buffett, and Guerin together interviewed Chuck Huggins to be the CEO of See’s Candy at that time.
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Looking back at the returns chart for Guerin’s Pacific Partners, you will see the drop in 1973 of 42%. Guerin followed up the drop in 1973 with another 34% drop in 1974. That would be a cumulative drop of almost 62% in two years. During that two-year period, the S&P 500 did drop more than 37%, but the 62% drop in Guerin’s fund was almost catastrophic. While he obviously recovered later, many investors and partners probably lost faith just as Buffett and Munger did.
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Needless to say, the drop in his fund during 1973 and 1974 forced Guerin to sell back his Berkshire Hathaway to Buffett at the $40 level to cover margin calls and losses. Those shares would be worth $430,000 each at the time of this writing. As Buffett noted in his conversation with Pabrai, it was the leverage that forced the sale and exacerbated losses in his portfolio partnership. This violates a key axiom of investing: sell equities when you want to and not when you have to.
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Aside from the monetary losses, it seems that the use of leverage also lost Guerin the faith and trust of Buffett and Munger. Guerin’s long-term documented results are quite amazing, but he lives on in obscurity. He could have been legendary, but his “impatience” cost him the chance at being on the Mount Rushmore of investing.
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Nobody Talks About Rick Anymore? | Lutz Financial Blog

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Warren BUFFETT

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Warren BUFFETT

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