Sat Dec 27 00:30:00 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:
Summary:
Warren Buffett, nearing the end of his tenure as CEO of Berkshire Hathaway, reflects on his biggest investing mistake: buying Berkshire Hathaway itself. He explains that he initially purchased the company, a struggling textile business, hoping to profit from its stock buybacks as mills closed. However, an unfair tender offer led him to buy controlling interest out of spite. While this acquisition became the foundation of Berkshire’s future, Buffett admits the textile business was a terrible investment that dragged down the company’s performance for decades. He estimates this “dumb” decision cost Berkshire shareholders hundreds of billions of dollars and emphasizes the importance of investing in good businesses rather than just cheap ones.
News Article:
Buffett Calls Berkshire Hathaway “Dumbest Stock” He Ever Bought, Estimates Cost at $200 Billion
OMAHA, NE – Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has revealed what he considers his biggest investing blunder: acquiring Berkshire Hathaway itself. In a rare clip from CNBC’s Warren Buffett Archive, Buffett explained that his initial purchase of the struggling textile company in the 1960s, though ultimately leading to the conglomerate Berkshire Hathaway is today, was a costly error.
Buffett, who is preparing to step down as CEO after decades at the helm, recounted how he initially planned to profit from Berkshire’s stock buybacks as it closed failing textile mills. But when the company’s management attempted to shortchange him on a tender offer, Buffett, fueled by anger, bought controlling interest.
“The dumbest stock I ever bought was… Berkshire Hathaway,” Buffett stated in the interview with Becky Quick. He estimates that the drag of the failing textile business, which he fought to save for 20 years, cost Berkshire shareholders at least $200 billion.
Buffett emphasized the lesson learned: “If you get in a lousy business, get out of it.” He advised investors to focus on buying “good” businesses at a fair price rather than simply chasing “cheap” stocks.
Despite the initial misstep, Buffett transformed Berkshire Hathaway into a $1 trillion behemoth, amassing a personal fortune that places him among the world’s richest individuals. His Class A shares in Berkshire account for most of his $151 billion net worth. Had he not donated hundreds of thousands of B shares, his worth would be around $359 billion.
Berkshire Hathaway’s top holdings include publicly traded stocks in the US and Japan. Investors continue to scrutinize Buffett’s every move for insights into his investment philosophy. As Buffett nears the end of his leadership, his reflections on both successes and failures provide valuable lessons for aspiring investors.
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