Warren Buffett and Charlie Munger’s Best Investment

Out of all the acquisitions that Buffett and Munger made together, the acquisition of See’s Candies in January of 1972 might be the most important, not necessarily because it was the greatest source of future wealth for the two of them, but because of the way it shaded their approach to investing.

In the late 1960s and early 1970s, Warren Buffett focused his investing on windmills, textile mills, dying department stores, and pump factories. These were dying businesses, but they followed the Graham school of thought that you can buy something so cheap before book value that you would be guaranteed a profit if you chose to liquidate the business and you’d have a good chance of doing extraordinary well even if the business showed modest improvement. If Bart had to go to the chalkboard and describe Warren Buffett’s investing style before the See’s Candies purchase, he would write, “Buy … Read the rest of this article!