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The origins of Buffett's Berkshire

Excerpt from Berkshire Hathaway's 2014 letter to shareholders retells the experiences and mistakes of the legendary investor

A photograph of Mr Buffett appears on a box of See's Candies peanut brittle on display. To date, See's has earned US$1.9 billion pre-tax, with its growth having required added investment of only US$40 million.

It took Charlie Munger (above) to break the cigar-butt habits and set the course for building a business that could combine huge size with satisfactory profits, writes Mr Buffett.

ON May 6, 1964, Berkshire Hathaway, then run by a man named Seabury Stanton, sent a letter to its shareholders offering to buy 225,000 shares of its stock for US$11.375 per share.

I had expected the letter; I was surprised by the price.

Berkshire then had 1,583,680 shares...

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