The ‘Dumbest’ Purchase Warren Buffett Ever Made
Renowned for his unparalleled investing genius, Warren Buffett, the “Oracle of Omaha,” has built an investment empire revered globally. However, even legends make mistakes, and Buffett openly admits to one significant blunder in his career: his purchase of Berkshire Hathaway.
In a 2010 interview with CNBC, Buffett described his “dumbest stock purchase” as none other than Berkshire Hathaway, a struggling textile mill operator at the time. What initially seemed like a strategic move turned into a lesson in emotional decision-making, driving Buffett to buy more shares purely to oust the then-CEO Seabury Stanton.
How Emotions Played a Key Role
Buffett’s original plan for Berkshire Hathaway involved purchasing shares to sell back at an agreed-upon price of $11.50. However, when Stanton offered a lower price, Buffett responded with annoyance, leading him to purchase more stock and take control of the company out of spite. This emotional reaction proved costly as he later acknowledged that the decision to keep running the textile business was unwise.
“If I had simply stuck to Berkshire Hathaway’s insurance business, the company would likely be worth twice as much today,” Buffett remarked.
Berkshire Hathaway’s Remarkable Transformation
Despite its challenging start, Berkshire Hathaway became the foundation of Buffett’s legendary career. From his takeover in 1965 to his retirement on January 1, 2026, Buffett transformed the company into a behemoth. Over the years, Berkshire Hathaway’s stock (BRK.A) skyrocketed 3,950,000%, closing at $754,800 per share at the end of Buffett’s tenure. Meanwhile, his personal net worth grew to an estimated $151 billion.
Buffett’s 60-year stewardship further cemented his reputation, even though he willingly underperformed against the S&P 500 in 2025. One notable move during his last months as CEO was bolstering Berkshire’s cash reserves, signaling his concerns about market volatility in 2026.
Investment Wisdom for Future Generations
Buffett’s journey offers valuable lessons for investors everywhere. His biggest takeaway? Avoid investing based on emotions. The story of Berkshire Hathaway underscores the importance of a clear, calculated strategy and the dangers of letting personal disputes influence financial decisions.
For those inspired by Buffett’s legacy, consider using tools to make sound investment decisions. For example, platforms like eToro enable users to access various assets, copy successful traders, and gain valuable insights into market trends—all essentials for building long-term wealth.
The bottom line is that even the greatest investors stumble. What sets them apart is their ability to learn, adapt, and ultimately triumph.
