Ep. 2 | How Warren and Charlie acquired businesses? Lessons on Textiles, Media, and Insurance 

Berkshire Hathaway was growing in size and influence as Buffett and Munger began their acquisition spree. In Episode 2, covering 1982 to 1986, we discuss the interesting businesses that Berkshire was buying and the even more interesting stories of those purchases. The formidable Mrs. B’s Nebraska Furniture Mart deserves a mention.
While Berkshire continued its acquisitions, Warren alerted his readers about the motives behind rampant mergers and acquisitions happening around. He displayed unpopular but thought-provoking views on efficient market theory while advising retail investors to invest in index funds. We discuss how he speaks his mind when detailing the challenges faced by his businesses and how he was confident of Berkshire’s ability to withstand those challenges.
00:00 Introduction
00:46 The economic scene of 1982-1986 and agenda
01:34 Buffett dismissed Efficient Market Theory
02:45 What is arbitrage?
05:21 Warren recommends index funds
07:52 Reported and unreported earnings
13:18 Nebraska Furniture Mart
16:25 How Buffett found acquisition targets?
17:42 Ads in letters to shareholders
19:02 Contrasting views of Buffett and Damodaran on acquisitions
22:58 Buffett’s views on Goodwill accounting
25:35 Challenges in media businesses
28:01 Insurance sector challenges and Berkshire’s strength
29:41 Social and judicial inflation
32:16 Buffett shut down the textile business
33:47 Buffett’s only job at Berkshire
36:53 Summary
Ep 1 Investment Philosophies | Warren Buffett's Letters (1977 - 1981):
• Ep. 1 - Investment Phi...
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