Warren’s verdict on the National Indemnity deal – a “blunder”

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Warren calls the way in which he went about the National Indemnity deal as a more serious blunder than the purchase of Berkshire Hathaway: “becoming the most costly in my career.”

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This self-deprecation – written in his 2014 letter to BH shareholders – needs some explanation.  The key to understanding this logic is that his prime responsibility – and he felt it very keenly – was to his partners.

The fund was 100% partnership money. If there was value in anything bought for it his partners would obtain 100% of the benefit.

So if National Indemnity is a great buy, and…….

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