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15 articles, newest first.
Buffett's Two Airline Investments and Their Outcomes
Buffett invested in U.S. airlines on two separate occasions. The first was in 1989, when he bought convertible preferred stock in USAir, later renamed US Airways. The second began in 2016, when he…
Buffett's Two Irish Bank Investments
Berkshire spent $244 million on two Irish bank stocks in 2008; their year-end value was just $27 million. Buffett acknowledged misjudging their apparent cheapness. The year-end marks illustrate how…
Why Buffett Sold Tesco Too Slowly
Buffett had concerns about Tesco's management in 2013 but sold only part of the holding. As operating and accounting problems worsened, Berkshire ultimately recorded an approximately $444 million…
Why Dexter Shoe Became So Costly for Berkshire
Buffett acquired Dexter Shoe with Berkshire shares in 1993 and later acknowledged misjudging its competitive advantage. As the business lost its value, the Berkshire shares paid for it continued…
What Buffett Misjudged in ConocoPhillips
Buffett increased Berkshire's ConocoPhillips position near the peak in energy prices in 2008 without anticipating the sharp second-half decline. He subsequently acknowledged in the shareholder…
Buffett's Marshall-Wells Investment
Marshall-Wells's low valuation attracted the young Buffett, but subsequent operating decline weakened the appeal of the discount. Available interviews and secondary archival research do not…
Philadelphia & Reading's Shift from Coal to Business Acquisitions
Today, let's discuss a case that is important for understanding the evolution of Buffett's investing: Philadelphia & Reading, or P&R.
Asset Discounts and Capital Returns in Buffett's Union Street Railway Investment
Union Street Railway traded below its cash-like assets and later distributed $50 per share. Valuing the case requires distinguishing freely available cash from restricted deposits; realizing the…
Buffett's Restructuring of Dempster Mill
Buffett bought Dempster Mill below his conservative asset valuation. After taking control, he brought in Harry Bottle to improve operations and convert inventory and other assets into cash, making the…
How Buffett Helped Sanborn Map Distribute Securities Assets
Sanborn Map's securities were worth more than the company's market capitalization. Buffett bought shares and helped arrange an exchange through which shareholders received part of those assets,…
Evidence on Buffett's Stock Selection and Subsequent Influence
Bowen, Rajgopal and Venkatachalam find that Berkshire's listed investments often already match some of Buffett's publicly stated principles before purchase. Evidence of further changes after…
Why Factor Models Do Not Fully Explain Buffett's Historical Returns
Hou and coauthors find that q-factor models do not fully explain Berkshire's historical excess returns. This concerns model explanatory power and does not directly evaluate every quantitative fund's…
Price Adjustment After Buffett's Holdings Disclosures
Hughes, Liu and Zhang study Berkshire's holdings disclosures from 1980 to 2006 and find that prices continue adjusting afterward. Their historical evidence makes copying returns and the…
How Leverage and Quality Explain Buffett's Historical Returns
AQR's Buffett's Alpha connects Berkshire's historical returns with its holdings and financing. The researchers find that inexpensive leverage and a preference for high-quality businesses explain a…
Where Buffett's Investment Experience Meets Multifactor Research
Multifactor studies link valuation and profitability to historical average returns. These findings overlap with Buffett's discussions of business quality and purchase price, although the methods and…