Warren Buffett admits to $873 million mistake:
Buffett said he decided to buy about $2 billion of EFH's debt when it was created in 2007 as part of a leveraged buyout of Texas electric utility assets.
He made that decision "without consulting with (business partner) Charlie (Munger). That was a big mistake."
Buffett wrote that unless there's a big increase in natural gas prices, the company will "almost certainly" file for bankruptcy protection this year.
Last year, Berkshire sold the bonds for $259 million. Adding back the $837 million received in cash interest, Buffett's decision produced a pre-tax loss of $873 million.
"Next time," Buffett promised, "I'll call Charlie."
'via Blog this'
Buffett said he decided to buy about $2 billion of EFH's debt when it was created in 2007 as part of a leveraged buyout of Texas electric utility assets.
He made that decision "without consulting with (business partner) Charlie (Munger). That was a big mistake."
Buffett wrote that unless there's a big increase in natural gas prices, the company will "almost certainly" file for bankruptcy protection this year.
Last year, Berkshire sold the bonds for $259 million. Adding back the $837 million received in cash interest, Buffett's decision produced a pre-tax loss of $873 million.
"Next time," Buffett promised, "I'll call Charlie."
'via Blog this'
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