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By Root 3619 0

and knew that they’d get far more money from the Germans. “And she snarled at them, Just tell me how much more you think you’re going to get and I’ll give it to you. She wanted to divide up the money and get them out of there so it would be Louie’s company, and they stood there against the wall, quivering. They wanted to go. And then she said the price was fifty-five million dollars for ninety percent of the company.” Mrs. B had said, “I don’t understand stock.” She wanted cash. “They stood there mute, but they were also thinking, as soon as this sale goes through, we get the money, we’re getting the hell out of here.

“She really liked and trusted me. She would make up her mind about people and that was that.” Buffett knew she made decisions about everything once and for all and in the blink of an eye, so he wasn’t taking much risk, but, “I told Mrs. B after she signed, I said, ‘If you change your mind on this it’s okay with me.’ I would never say that to any other seller in the world, but I just felt that this was just such a part of her, if there was any reason she decided she didn’t want to do it after—I didn’t want her to feel bound. And she said, ‘I don’t change my mind.’

“When I was leaving, I told Louie, ‘I’m terrible with accents. Sometimes I don’t understand your mother perfectly; the last thing I want in the world is a misunderstanding with her.’ And Louie said, ‘Don’t worry, she’ll understand you.’

“After the deal was done, I said, ‘Mrs. B, I’ve got to tell you something. It’s my birthday today.’” Buffett was fifty-three. “And she said, ‘You bought an oil well on your birthday.’”

The Blumkins had never had an audit, and Buffett did not ask for one. He did not take inventory or look at the detailed accounts. They shook hands. “We gave Mrs. B a check for fifty-five million dollars and she gave us her word,” he said.44 Her word was as good as “the Bank of England.” Buffett, however, still wanted to make sure that Rose had no regrets.

The contract was just over a page of Carnegizing. It began, “You own a hundred percent of the outstanding stock of Nebraska Furniture Mart, Inc. (‘NFM’) which operates a remarkably successful furniture and appliance retailing business…. Berkshire Hathaway, Inc. (‘Berkshire’) has long admired what you have accomplished together and hereby proposes to purchase from you ninety percent of such outstanding stock.”45 To announce the deal, he held a press conference and showed a video on the company’s history. Mrs. B dabbed at her eyes as the film was shown.46

Buffett had not only found another unusual specimen to add to his collection of interesting personalities. Something about Mrs. B’s indomitable will, history of hardship, and strength of character inspired awe in him.47 “Dear Mrs. B,” he wrote to her. “I have promised Louie and his boys that all members of the family are going to feel good about this transaction five, ten, and twenty years from now. I make you the same promise.”48

Buffett had promised more than that. Mrs. B was used to operating in total control and privacy; she did not want Buffett to throw her financial dress up in the air and show her knickers to the world. He had promised her that the accounts of the Furniture Mart would not be separately reported when Berkshire Hathaway filed its financial statements with the SEC, as of course was legally required.

Buffett had no worries about getting a waiver from the SEC—or rather getting one of his employees to get the waiver. He was a likable boss who never lost his temper, never changed his mind capriciously, never said a rude word to anyone, never berated or criticized his employees, didn’t second-guess people on their work, and let them do their jobs without interference. He also operated on the assumption that if somebody was smart, they could do anything. Charlie Munger said of him, “Warren doesn’t have stress, he causes it.” Dale Carnegie said to give people a fine reputation to live up to, and Buffett had learned that lesson well. He knew how to Carnegize heroic accomplishments out of his people.

The gist of what