Warren Buffett was born on August 30, 1930. He is a renowned investor, a well-known entity in the investment world, and noted for his philanthropist efforts. He was named the chief executive officer of Berkshire Hathaway in 1963, after buying majority stock in the ailing textile company. Warren, after taking control of Berkshire Hathaway, got the company out of the textile business, and into the successful investment firm, it is today.
In interviews with the press, Warren Buffett has stated his buying of Berkshire Hathaway was a costly $200 billion dollar mistake. Warren’s admits his primary motivation was to go against the former CEO of Berkshire Hathaway that tried to cheat Buffett out of an eighth of a point on his stock deal.
Warren Buffett, at that time, had his own holding company, under another name. Hillshire Hathaway was a failing textile industry. Warren has stated in retrospect that his holding company would be worth twice as much if he has bought a good insurance company instead of investing in the textile business.
By 1964, Buffett had acquired a lot of Berkshire Hathaway stock. Buffett made a visit to Berkshire Hathaway’s management and a tender offer was made to Buffett. Buffett asked for $11.50 dollars a share and that was what promised. Several weeks later, Bonnett got the documentation stating Bonnett would be paid eleven dollars and three-eighths per share. In retaliation, Bonnett did not tender his shares and bought up more stock. After buying enough stock in Berkshire Hathaway, Bonnett acquired control of Hillshire Hathaway and fired the manager who lied about the agreed tender offer.
In 1962, Warren Buffett started buying stock in Berkshire Hathaway. Buffett mindset was that as the company would close one of their textile mills, with the proceeds of selling the mill, Buffett would buy more stock and he would tender the stock to them, thus making a profit. Bonnett finally got Hillshire Hathaway out of the textile business, 20 years later.