{"id":2796,"date":"2007-02-11T21:46:13","date_gmt":"2007-02-11T21:46:13","guid":{"rendered":"http:\/\/zmetro.com\/?p=2796"},"modified":"2007-02-11T21:46:13","modified_gmt":"2007-02-11T21:46:13","slug":"permanent_value","status":"publish","type":"post","link":"https:\/\/www.zmetro.com\/?p=2796","title":{"rendered":"Permanent Value: The Teachings of Warren Buffett"},"content":{"rendered":"<p><a href=\"http:\/\/www.vinvesting.com\/permanent_value_the_teachings_of_warren_buffett\">Warren Buffett<\/a>:<\/p>\n<blockquote><p><i>Well in 1962 I learned from Ben Graham how to assess businesses. He also had the cigar butt analogy for buying businesses&#8230;you can usually get one good puff out of it and it&rsquo;s free. Berkshire made a lot of money after WWII (more than Pfizer and Merck) and then it steadily went downhill. Between 1955 and 1965 Berkshire went from 12 mills to 2 mills and they bought their own stock as mills closed. We bought 100,000 shares out of 1 million in 1962 at $7 3\/8 and the company had $10-11\/share in working capital&#8230;I knew I wouldn&rsquo;t lose money because of the working capital. It was losing money but it was also liquefying assets by closing mills. Seabury Stanton was running Berkshire at the time and I went to go visit him. We had an agreement that Berkshire would tender $11-1\/2 for my shares of the company. At this point, I could not buy any stock as I had inside information. A few weeks later I received a letter from Old Colony Trust containing a tender offer of $11-3\/8. Early the following week, Seabury tendered the stock at 11 3\/8. As result, I began buying more Berkshire. Other family members of Seabury Stanton sold their shares to me and I gained controlling interest in the company. The family members weren&rsquo;t very happy with Seabury either really. We ran the mills until 1985. .<\/i><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Warren Buffett: Well in 1962 I learned from Ben Graham how to assess businesses. He also had the cigar butt analogy for buying businesses&#8230;you can usually get one good puff out of it and it&rsquo;s free. Berkshire made a lot of money after WWII (more than Pfizer and Merck) and then it steadily went downhill. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,32,35],"tags":[],"_links":{"self":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/2796"}],"collection":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2796"}],"version-history":[{"count":0,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/2796\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}