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The Thesis
The greatest trade of all time isn't a single trade — it's Buffett's 60-year compounding machine at Berkshire Hathaway, turning a failing textile company into the most successful conglomerate in history through patient capital allocation.
The Story
Warren Buffett took control of Berkshire Hathaway in 1965 when it was a struggling textile manufacturer trading at $18 per share. He's called buying the textile business "a terrible mistake" — but what he built on top of it became the greatest compounding machine in the history of capitalism. Over nearly 60 years, Buffett compounded Berkshire's book value at approximately 20% annually, turning that $18 stock into over $700,000 per share (Class A).
The formula was deceptively simple: use insurance float (free capital from policyholders' premiums) to buy wonderful businesses at fair prices, then hold them essentially forever. GEICO, See's Candies, Coca-Cola, American Express, Apple, Burlington Northern — each acquisition built on the last, creating a self-reinforcing flywheel of capital allocation. A $1,000 investment in Berkshire in 1965 would be worth over $43 million today. At age 94, Buffett remains the chairman and the most respected investor in history. His career isn't just the greatest trade ever made — it's the greatest demonstration that patience, discipline, and compound interest can move mountains.
Key Insight
The greatest trade of all time is simply compounding capital wisely, patiently, and consistently for as long as possible — time is the ultimate competitive advantage.
“Someone's sitting in the shade today because someone planted a tree a long time ago.”
Warren Buffett
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See how Glen Bradford applies these principles to his own investing. Long Fannie Mae & Freddie Mac junior preferred — conviction meets patience.