The Collector

Author: Jonathan R. Laing (Wall Street Journal) Published: March 31, 1977 Source: WSJ

Overview

A Wall Street Journal profile from 1977 depicting Warren Buffett at age 46, already a legendary investor who parlayed a $100,000 partnership into $100 million in 13 years, then pivoted to building Berkshire Hathaway into a conglomerate.

Key Quotes

On Exiting Money Management

"It's a tremendous relief being out of money management. I'm not constantly thinking about business anymore. During the partnership my ego was on the line, and I was trying to lead the league in hitting every year."

On Business Acquisition Philosophy

"I usually don't get involved because I'm careful to buy well-run companies from owners who built the enterprises and stay on to run them. I like guys who forget that they sold the business to me and run the show like proprietors."

The "Marry the Daughter" Analogy

"When I marry the daughter, she continues to live with her parents."

This describes Buffett's approach: acquiring businesses with existing management staying on, maintaining their operational independence.

Berkshire's Empire (1977)

Key Holdings

Company	Berkshire's Stake
Berkshire Hathaway	33% (Chairman)
Blue Chip Stamps	61%
See's Candy	99%
Wesco Financial	80%
Washington Post	10%
GEICO	15%

Financials (1976)

Revenue: $139 million
Operating Earnings: $16.1 million
Blue Chip Revenue: $88 million
Blue Chip Earnings: $11.7 million

Buffett's Management Style

Low-key — Rarely changes management personnel
Strategic focus — Concentrates on acquisitions and asset management
Long-term orientation — Lets managers run businesses as "proprietors"

The Contrarian Timing

Buffett famously closed his partnership in 1969, just before the 1970s market crashes, distributing gains to over 100 partners. He then used his personal $25 million to begin acquiring controlling stakes in businesses.

Related Concepts

Source

Wall Street Journal, March 31, 1977.