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Buffett's Early Investments: A new investigation into the decades when Warren Buffett earned his best returns

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Buffett’s Early Investments investigates ten investments that legendary investor Warren Buffett made in the 1950s and 1960s—earning him his first millions—and uncovers unique insights in the process.

Using the same documents Buffett used when he made these investments, the author reveals the fascinating inside stories

- How Philadelphia and Reading, Buffett’s largest investment in 1953, transformed from a declining coal company to a diversified conglomerate whose stock went up tenfold due to the intervention of Buffett’s mentor, Ben Graham.
- How corporate governance issues actually presented serious risk to Buffett’s 1966 investment in Walt Disney.
- How Buffett and Charlie Munger made their first formal investment together in Hochschild-Kohn.

Other investments analyzed include British Columbia Power, Cleveland Worsted Mills, Greif Bros, Marshall-Wells, Studebaker, Timely Clothes, and Union Street Railway. Not all of these investments worked out—this book shows why.

The book concludes by discussing the role activism had in driving Buffett’s early returns and the research methods Buffett used to uncover unique insights regarding the investments he made.

Buffett’s Early Investments helps readers understand how history’s greatest ever investor really made his returns in the years where he produced his best numbers—and what that means for investors today.

198 pages, Hardcover

Published November 5, 2024

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Brett Gardner

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5 stars
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105 (39%)
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34 (12%)
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Displaying 1 - 30 of 30 reviews
5 reviews
December 26, 2024
Thoughtful investigative deep-dive on Buffett’s early investing career based on case studies wrapped in helpful/balanced commentary.

Written in a way where the reader can evaluate situations using information that was available to Buffett before making the investment, which encourages critical thinking and learning.

Reads like a well researched business history book (377 footnotes across 160 pages) and worth noting that the author went out of his way to access primary documents dating back to the 1950s (via local libraries etc) to help contextualize the case studies with data.
Profile Image for Ferhat Elmas.
884 reviews17 followers
June 7, 2025
Buffett, a generous source never ceases to give. A close look into his early investments with light commentary to extract hindsight key points; unconventional hands-on research, concentrated investments, saying no and selective filtering, and (activist) engagement.
Profile Image for Giulio Gilardi.
86 reviews
August 5, 2025
Great book to understand better Buffett’s investing framework and its evolution.
Profile Image for Jung.
1,933 reviews44 followers
Read
April 13, 2025
Warren Buffett's rise to legendary status in the investing world didn’t start with billion-dollar bets on tech giants — it began with small, strategic plays based on deep research, sharp instincts, and a willingness to go where others wouldn’t. "Buffett's Early Investments" by Brett Gardner dives into these formative years, revealing how the young investor honed his strategy through a mix of analysis, patience, and contrarian thinking. Before the world followed his every move, Buffett was just a man with a calculator, a pile of financial reports, and an eye for hidden value. This book digs into five of his early investments, offering a detailed look at how he learned to spot undervalued companies, assess risk with precision, and sometimes even reshape the businesses he invested in. What emerges is a portrait of an investor who was anything but lucky — someone who made his fortune by seeing what others couldn’t.

One of Buffett’s earliest investments came in 1951, when he was only 21. He identified potential in Greif Bros., a company that produced wooden barrels — an industry already in decline at the time. While most would have written the company off as irrelevant, Buffett focused on its financial structure. The company’s liquid assets, after subtracting liabilities, exceeded the total market value of its shares. This meant the business was being valued by the market for less than what it would be worth if liquidated — a textbook 'net-net' situation. Buffett liked to call these investments 'cigar butts': companies that may only offer one last puff, but at a bargain price. Greif Bros. had undervalued inventory, owned a surprising number of factories and facilities, and had adopted an accounting method that likely understated the worth of its physical goods. These factors combined to provide what Buffett always sought — protection on the downside. Interestingly, Greif didn’t collapse like many net-nets. It adapted and survived, hinting at Buffett’s future ability to recognize long-term potential in companies beyond just a short-term asset play.

A year later, in 1952, Buffett bought into the Philadelphia and Reading Coal and Iron Company, a business that had fallen far from its former prominence. Originally a major force in coal transport and production, it had suffered from regulatory changes, competition from alternative fuels, and a Great Depression-induced bankruptcy. By the time Buffett invested, the company was a shell of its former self. Yet again, while others focused on the bleak income statements, Buffett scrutinized the balance sheet and found hidden value — notably, the culm banks, or mining waste, which still held resale potential. He also knew that his mentor, Benjamin Graham, was not only an investor in the company but had taken a seat on its board. Graham's influence reassured Buffett, and that confidence paid off. The company was restructured into a diversified holding company that used profits from newly acquired businesses to offset past tax losses, generating strong returns. Buffett’s investment rose in value several times over. More significantly, this experience planted the seeds of his later approach — being an active participant in shaping the future of companies he believed in, rather than just betting on their success from the sidelines.

In 1962, Buffett turned his attention to British Columbia Power. The Canadian government had taken over its main utility asset, prompting the company to seek greater compensation. While other investors stayed away due to uncertainty, Buffett saw a limited-risk opportunity. The legal battle meant there was a clear timeline and a defined potential upside. Since the company was already liquidating and had paid out significant funds to shareholders, he believed more payments were likely. Plus, if the court ruled in the company’s favor, shareholders like Buffett would gain directly. Despite the dispute, the share price was relatively stable, offering a margin of safety. Buffett loaded up, and the bet paid off when the court ordered the government to provide additional compensation. While the rest of his portfolio remained flat that year, this focused investment delivered strong gains. This episode exemplified Buffett’s use of special situations — or 'workouts' — to generate returns independent of broader market movements, a lesser-known but highly effective aspect of his investing style.

Perhaps the most emblematic early Buffett move came in 1964, in the wake of the now-infamous salad oil scandal. American Express, known for its traveler’s checks and growing credit card business, was embroiled in controversy after it was revealed that one of its subsidiaries had certified fraudulent collateral. The market panicked, slashing the company’s stock price amid fears of massive liabilities. But while others worried about short-term losses, Buffett zeroed in on something far more important: the brand’s reputation. He visited banks, restaurants, and travel counters to see if customer trust had been damaged. To his surprise, it hadn’t. In fact, usage of American Express products was still growing. He realized the scandal hadn’t compromised the brand's essential role in people’s financial lives. Betting on the company’s durable reputation rather than its momentary financial trouble, Buffett bought aggressively. That move paid off handsomely, yielding over $15 million and forming a significant chunk of his partnership’s returns for the next few years. This investment highlighted a shift in Buffett’s thinking — from valuing only tangible assets to recognizing the importance of brand equity and public perception.

In 1966, Buffett saw a different kind of opportunity in Walt Disney Productions. Despite its recent box office smash 'Mary Poppins', the company’s stock was cheap. Many investors viewed entertainment companies as risky due to the unpredictable nature of movie success. Others were skeptical of Walt Disney himself, believing he might prioritize creativity over profits. But Buffett did the legwork. He went to see 'Mary Poppins' and recognized that Disney’s films weren’t just one-time successes — they were long-lasting cultural assets. On a visit to the studio, he was particularly struck by the valuation of the Pirates of the Caribbean ride, realizing that Disneyland’s attractions alone could justify much of the company’s market cap. The rest — the characters, the film library, the brand — were essentially free. He bought a 5 percent stake for $4 million. Unfortunately, he sold too soon, missing out on massive future returns. Still, the Disney deal demonstrated Buffett’s growing ability to identify not only undervalued balance sheets but also underappreciated 'brands' with long-term earning potential.

Taken together, these early investments reveal the evolution of Buffett’s philosophy. Starting from pure balance-sheet plays, he gradually came to appreciate the intangible elements that make companies great — their brands, their people, and their capacity to adapt. Each deal taught him something new: the value of downside protection, the advantage of concentrated bets, the importance of engaging with management, and the power of public trust. What separates Buffett from most investors isn’t just his eye for numbers but his willingness to dig deeper — to investigate, observe behavior, and sometimes even help steer the ship. Before his name could move markets, Buffett had to earn his reputation the hard way: by consistently seeing value where others saw risk.

"Buffett’s Early Investments" is more than just a financial history; it’s a roadmap for developing strong investment instincts. Gardner shows that Buffett’s greatest asset wasn’t just capital — it was curiosity, discipline, and a refusal to follow the crowd. These early deals laid the foundation for his future empire and demonstrate how anyone — armed with the right approach — can find opportunity in the overlooked corners of the market. Whether it’s barrels, coal, salad oil, or singing chimney sweeps, the lesson is the same: true value doesn’t always shout. Sometimes it whispers from the balance sheet — or even from the ticket booth at Disneyland.
Profile Image for Elliot H.
3 reviews
December 18, 2024
This is must-read for anyone who wants to dig into Buffett's investment history. Each case study is substantive and is full of excellent historical context. You're able to peek over Buffett's shoulder and observe his decision making process, complete with the data he had at the time. Garder successfully makes the case that this was hard work, and often required activism. Buffett wasn't just scooping up net-net stocks while sipping Cherry Coke. I learned a ton from this.
Profile Image for Jim.
15 reviews
April 6, 2025
A rare book - one that delivers on its promise and provides value in every page.

Brett promised a deep dive into Buffett’s early investments that few have touched, and I learned from each one. American Express probably could’ve been excluded as so much has been written on this investment, but even that section I gained a deeper depth of knowledge on as a result of Brett’s research.
32 reviews
Read
January 31, 2025
Short but informative. A worthy addition to the Berkshire universe.
Profile Image for Arun  Pandiyan.
194 reviews47 followers
April 14, 2025
Two years ago, I read Warren Buffet 's Ground Rules, the book that documented Buffet's partnership years, before he built his Berkshire Hathaway. A major takeaway from that book was that the simplest and most effective way to build wealth in your thirties is through partnerships. But, even before his partnership years, Buffet owned a few individual stocks, following the footsteps of Benjamin Graham, and he called his style of investing 'Cigar Butt Approach' related to a smoked cigar found on the road being worth a puff. Buffet applied this principle to buying stocks, where he bought undervalued stocks applying Graham's principle, and sold at a profit. Enter Charlie Munger, Buffet changed his style of investing outlook to owning a good business, and the rest is history.

This book outlines the number of stocks Buffet owned during his early years, the mistakes he committed, the profits he made, the board he served as member to influence decisions (what is called today as activist investing), and his decision making style before purchasing something. When you read the story of Buffet's interest in American Express, which was merely a money order service when he purchased, you'll learn the biggest lesson in investing: conviction.

During the initial years of investing, we undergo two kinds of dilemmas, whether to diversify or focus. What made Buffet so good at investing was his conviction—his ability to analyze why a company is valuable, and accumulate a major portion of it when the price is available at a discount. Buffet's knowledge provided him with a tool to assess value, and Charlie Munger provided him the conviction he needed. This is why Buffett observed Munger's death, “In reality, Charlie was the “architect” of the present Berkshire, and I acted as the “general contractor” to carry out the day-by-day construction of his vision.” Munger exemplified conviction when he went on to say he would buy Costco even at 80x PE.

Conviction is different from confidence. Confidence is when you're sure of yourself. Conviction is when you're certain about something. In investing, confidence does not guarantee success, but conviction does.
Profile Image for Max Rudolph.
13 reviews
January 20, 2025
I found the individual chapters of Brett Gardner’s book about the early Buffett investing strategy to be interesting, but the most useful are the first and last. The preface shares the author's goals, noting that Buffett relies on four factors for outperformance; activism, concentration, research skills (like an investigative journalist) and a great filter to quickly decide what to do/avoid. The conclusion expands on these, adding the role of capital allocation (e.g., using cash cows to fund new opportunities rather than reinvest) and his evolution to buying the whole company so he could implement a strategy. The internal chapters take on individual investments and walks the reader through publicly available information at the time. His investment categories are useful; generals, workouts, controls.

Limited interactions with Buffett occurred. Had WEB’s thoughts been shared we might know more about turnover strategy and decisions to sell. In the early days many of these companies were small so accumulating and selling shares was not something done easily – liquidity was limited. High returns meant turnover needed to happen quickly. It is also important to differentiate considerations about price/book ratio between retail and manufacturing type companies.

I see these strategies described that are available to the individual investor today.

• Increase in P/E multiple from low level
• Complex structure requires investment of time to understand
• Financial absurdity others had not recognized (e.g., cash greater than market value). This is Graham’s cigar stubs and with computers is not common today. It is also Disney’s film library in 1960.
• Tax strategy - tax loss carryforwards often slip through filters
• Continue to follow companies you exit – quick reentry due to prior work done
• It’s better to hold cash than to stretch for mediocre returns to be fully invested
• Qualitative analysis is important – especially during a strategy pivot
Profile Image for Daniel Ottenwalder.
352 reviews4 followers
November 23, 2024
Case studies in the progression of the master of value investing getting rich is easy when you walk over 1 foot poles. It all comes down to risk assessment which could explain why Berkshire thrived as an insurer too especially in the e&s reinsurer space. In the end we must assess the industry microeconomic dynamics. What is the structure of the industry? What guards your capital against the cold wind of competition.

M&A arbitrage and property assessing business value by quantifying downside risk
Sometimes news ignores the facts and presents opportunity to purchase 0.50 cent dollar bills.

Bet big when you know something - diversification should be called diworsification.

Everything is an opportunity to learn
191 reviews14 followers
December 24, 2024
I have followed Warren Buffett's career for decades and even been to the BRK/A annual meeting a few times. I highly recommend this for anyone, no matter what your investing persuasion. It is a quick read and has life lessons in addition to investing lesson. Perserverance and curiosity are among the necessary qualities found necessary for success.
Profile Image for Jørgen Astrup.
11 reviews
July 2, 2025
Great read and straight to the point. Really enjoyed it! Fantastic if your interested in understanding more of how Warren Buffett invested before he had too much money. Detailed and short at the same time. This is one of my favorite books about him. If your primarily interested in investing and not his life, this is a great book
Profile Image for Harris Perlman.
5 reviews3 followers
November 19, 2024
Congratulations on a fantastic new book! I love case studies, and this is the best compilation of early Buffett case studies that I've ever read, likely the best one that exists. Really impressive work.
Profile Image for Melissa.
51 reviews9 followers
January 7, 2025
Not a typical book I would pick up for a christmas ski vacation but glad I did. This case study style writing makes it an easy read. Highly recommended for anyone remotely keen on investing. Not too technical.
Profile Image for Zohaib Akhter.
7 reviews
June 28, 2025
It is a brilliant book. I have not read enough about warren buffett but it was incredibly helpful understanding how and what warren was thinking before deciding to invest in the companies. I had no clue that Warren was investing a significant portion of his capital in just 2-3 companies.
92 reviews
November 24, 2024
A digestibly written and insightful piece of work on Buffett’s lesser known but most lucrative investments - 5/5.
12 reviews
December 15, 2024
Really informative. Short but sweet. Excellent use of charts / tables to explain the case studies. Healthy balance of relatively unknown Buffett positions with more well known ( Disney etc).
12 reviews1 follower
December 20, 2024
Superbly researched and written look at the formative years of Buffet as capital allocator, through the eyes of his B-sides (some of which still topped the charts).
74 reviews1 follower
December 21, 2024
The book contains succinct and interesting research on many of buffets early investments. Through these cases it proves there's more than meets the eye to buffets iconic investment style.
Profile Image for Brendan Hughes.
Author 2 books19 followers
December 26, 2024
I thought the author did a good job on the research aspect of this book. While there has been a tremendous amount of material published on Buffett, this book provides some new material.
5 reviews
February 6, 2025
DNF- a very boring history of defunct businesses from the 1950s.

Almost no Buffett analysis or process.
Profile Image for John.
299 reviews2 followers
February 15, 2025
Modest but interesting and economical in length. The author explicitly writes to cover Buffett’s trades not covered elsewhere. Solid stuff. On to the “The Snowflake”.
Profile Image for Navdeep Pundhir.
298 reviews45 followers
April 12, 2025
Three stars for the historical story telling of the companies covered. Zero stars for getting Buffett into it
Profile Image for Jose Antonio La Rosa.
98 reviews
April 29, 2025
Awesome!

Wonderful and valuable book!!!
It truly helps you understand young Buffett!!!
It helped me a lot.
Thank you very much.
I strongly recommend it!!!
Profile Image for Rahul Mahindru.
83 reviews4 followers
May 3, 2025
Must read to understand how Buffett used to make decisions in his early investing time period.
Profile Image for chaymasira.
8 reviews
April 8, 2025
a must read

Brett did an amazing job. If you are a value investor like me , it’s definitely worth your time. Highly recommend!!
Displaying 1 - 30 of 30 reviews

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