⛏️ Buffett invested in Philadelphia and Reading, a coal company, seeing its assets as undervalued.
🤝 Benjamin Graham, Buffett’s mentor, was on the company’s board of directors, influencing strategic decisions.
🔄 The company diversified into new sectors, such as apparel and toys, under the leadership of Graham and his partner.
🚀 By 1968, Philadelphia was acquired by Northwest Industries, generating an extraordinary return for Buffett.
@adriarivero:
“Buffett began analyzing Philadelphia and Reading in 1952 and bought shares at $9. The company’s attraction was in its balance sheet. At the end of 1954, the stock was trading at $13.38, close to its net current asset value of $9.16. Another factor that influenced Buffett was the presence of his mentor, Benjamin Graham, on the company’s board of directors. In 1968, Philadelphia was acquired by Northwest Industries. At that time, the shares that Buffett bought for less than $10 in 1954 were worth more than $200, generating an extraordinary return.”
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