Warren Buffett Pays $1.7 Billion for a Business Without Meeting its Founders: Using the Most Important Thing in Business

Last Updated on May 9, 2024 by Robert C. Hoopes

Renowned investor Warren Buffett recently showcased his impressive business acumen once again by acquiring a business for a whopping $1.7 billion without ever meeting its founders. The business mogul’s company, Berkshire Hathaway Inc., has now reached a market value of nearly $1 trillion through shrewd investments and strategic acquisitions.

What sets Buffett apart from many other investors is his emphasis on the importance of understanding accounting in business. In fact, he has famously referred to accounting as the most crucial thing to know in business. Buffett’s keen accounting skills were on full display when he made a multibillion-dollar acquisition over a simple phone call, using his expertise to analyze the company’s financials.

Despite not having a face-to-face meeting with the founders of the business he acquired, Buffett was confident in his decision thanks to the company’s transparent financial disclosures. This successful acquisition once again highlights the significance of accounting knowledge in both business operations and investing.

Buffett’s ability to make such high-stakes decisions based on financial data alone serves as a valuable lesson for aspiring business professionals. By understanding the numbers and intricacies of financial statements, individuals can make informed decisions that may shape the course of their careers or businesses.

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