Warren Buffett’s Biggest Bet | The Salad Oil King | 1

Business Movers

Wondery

History, Business, Entrepreneurship

4.8 • 1.5K Ratings

🗓️ 3 March 2022

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

In 1963, a New Jersey conman named Anthony “Tino” De Angelis pulls off “The Great Salad Oil Swindle”, one of the largest financial frauds in Wall Street’s history. De Angelis’ actions cause American Express stock to plummet and puts a young midwest investor named Warren Buffett in a position to make one of the most important deals of his career.

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Transcript

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0:00.0	To listen to business movers one week early and add free, join Wondry Plus in the Wondry app.
0:07.0	Download the Wondry app in your Apple or Google Play mobile app store today.
0:25.0	It's late 1963 in Warren Buffett's office in Omaha, Nebraska.
0:30.0	Warren, the 33-year-old head of the BPL Investment Group, looks calm and collected sitting behind his desk, but his mind is racing.
0:38.0	Warren is about to make the biggest gamble of his life. If he fails, he's risking his reputation in his future.
0:45.0	Warren wants to put one-third of his investment groups capital into American Express, a company that is caught up in scandal and taking a nose dive on the stock market.
0:55.0	But Warren believes in American Express's products and thanks investing in the company now will lead to a multi-million dollar payout down the road.
1:04.0	He just needs help from one of his colleagues before he pulls the trigger.
1:08.0	Warren's office door opens and stockbroker Henry Brandt walks in.
1:12.0	Well, I'm not going to lie Warren, I have no idea what I'm here to talk to you about. Well, that's by design.
1:18.0	I don't want anyone to know about this conversation, but you and me.
1:22.0	Henry raises a eyebrow and closes the door behind him.
1:25.0	All right, so what is it? Well, Henry, I want BPL to buy up all the American Express stock we can.
1:32.0	Oh, you're crazy. The entire industry is calling for people to sell American Express as fast as possible, pointing the papers the company might be insolvent by next year.
1:41.0	It's true, American Express has unwittingly found itself at the center of a fraud that has rocked the commodities trading industry, engulfing several major Wall Street investment houses,
1:51.0	and causing American Express's market value to drop by over $100 million.
1:56.0	Yeah, I think the papers are wrong. American Express will bounce back. What are you basing that on? It's a feeling I have.
2:04.0	The look on Henry's face makes it clear he can't believe what he's hearing.
2:08.0	Warren, that goes against everything you've ever said about investing.
2:12.0	You always say, invest based on sound analysis, numbers and facts.
2:17.0	But a feeling. But this is different. American Express is the St. Louis Cardinals and what the hell does that mean?
2:26.0	In St. Louis, the Cardinals have cornered the market on baseball. No one else need to apply.
	...

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