008: Warren Buffett Private Company Investment Case Study
After Dinner Investor | Value Investing Podcast On The Hunt For No-Brainer Stock Investments
English - January 14, 2019 06:00 - 45 minutes - 31.1 MB - ★★★★★ - 15 ratingsInvesting Business Management value investing mohnish pabrai warren buffett charlie munger investing stocks stock market Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
In 1959, Warren Buffett made a personal investment in a private company called Mid-Continent Tab Card Company. He put in 20% of his net worth into this company and received a 16% share. Buffett held on to this investment for 18 years and the compounded annual return was 33%, so this was well-over a 100 bagger investment for Buffett.
I learned about this investment by watching a 2008 talk that Alice Schroeder, author of "The Snowball: Warren Buffett and the Business of Life," gave to the Darden School of business at the University of Virginia. It's a fascinating talk, and there was a lot to learn from it. Her talk got into a ton of interesting things like how Warren Buffett values companies and whether or not he uses a discounted cash flow formula. In this episode I breakdown her talk, Buffett's investment, and the lessons I learned from it.
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Her talk can be found here - https://afterdinnerinvestor.com/mid-continent-tab-card-company/
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