Warren Buffett turned a 12-cent insult into a $900 billion empire

17 Feb 2026 · 1 min

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In this narrated short-form video, Dan Novaes recounts how a seemingly minor 12.5‑cent reduction in a buyout offer in 1964 sparked Warren Buffett’s aggressive acquisition of Berkshire Hathaway. Initially a failing textile mill with empty factories and shrinking margins, Berkshire was bought cheap. After the CEO quietly cut the offer from $11.50 to $11.375 per share, Buffett felt insulted and instead of selling, he began buying shares, eventually controlling 43% of the company, ousting the CEO, and taking the board. Although Buffett later called the move his “dumbest investment” because it was driven by emotion, he repurposed Berkshire as a cash‑flow vehicle, using its insurance float to acquire superior businesses—insurance firms, banks, railroads, Apple, Coca‑Cola, Dairy Queen, among others. The textile operations were finally shut down in 1985, marking the birth of the modern Berkshire Hathaway, now valued at over $900 billion. The video concludes with Buffett’s upcoming step‑down as CEO and the transition of leadership to Greg Abel, emphasizing how a tiny insult led to a massive empire. The narrator invites viewers to follow the channel for more entrepreneurial stories.

Chapters

Did you know Warren Buffett built a $900 billion empire because someone disrespected him by 12 cents? In 1964, Buffett bought shares in a dying textile company called Berkshire Hathaway. The business was terrible. Empty factories, shrinking margins, but the stock was cheap. Then the CEO offered to buy Buffett out for 11.50a share. They shook on it. When the contract arrived, the offer was quietly cut by 12.5 cents. Buffett took it personally. Instead of selling, he did the opposite. He started buying aggressively. Within a year, he owned 43% of the company, took control of the board, and fired the CEO. Later, Buffalo. Buffett called this his dumbest investment ever, because emotion, not logic, drove the decision. But here's where history flips. Rather than shut Berkshire down, Buffett used it as a cash flow machine to buy better businesses. Insurance, banks, railroads, Apple, Coca Cola, and even dairy queen. In 1985, he finally killed the textile business. That's when the real Berkshire Hathaway was born. Today, it's worth over $900 billion. And Buffett, now stepping down as CEO, hands the empire to Greg Abel. All because of a 12 cent insult. For more entrepreneur stories and information like this, follow ubk.