The Snowball_ Warren Buffett and the Business of Life - Alice Schroeder [522]
5. “Bizad Students Win Scholarships,” Daily Nebraskan, May 19, 1950.
6. Benjamin Graham, The Intelligent Investor: A Book of Practical Counsel. New York: Harper & Brothers, 1949.
7. Garfield A. Drew, New Methods for Profit in the Stock Market. Boston: The Metcalf Press, 1941.
8. Robert D. Edwards and John McGee, Technical Analysis of Stock Market Trends. Springfield, Mass.: Stock Trend Service, 1948.
9. Wood, as cited in Lowenstein, Buffett. Wood is deceased. He told Lowenstein he was not sure when this conversation took place—before Buffett was rejected by Harvard or as late as after when he had started at Columbia, but it was apparently before he met Graham himself.
10. According to Buffett, Howard Buffett was acquainted with one of the board members.
11. Columbia University in the City of New York, announcement of the Graduate School of Business for the winter and spring sessions 1950–1951, Columbia University Press.
Chapter 16
1. In his memoir, Man of the House (New York: Random House, 1987), the late Congressman Tip O’Neill recalled that his pastor, Monsignor Blunt, said it was a sin for Catholics to go to the Protestant-managed YMCA. O’Neill and a Jewish friend stayed at the Sloane House anyway. The regular rate in the 1930s was sixty-five cents a night, but, O’Neill said, “If you signed up for the Episcopal service, it was only thirty-five cents, with breakfast included. We were nobody’s fool, so we signed up for the thirty-five-cent deal and figured to duck out after breakfast and before the service. But apparently we weren’t the first to think of this brilliant plan, because they locked the doors during breakfast, which meant that we were stuck.” By the 1950s, there was no longer a “pray or pay” deal at the Sloane House. “If there had been,” Buffett says, “I would have experienced a revelation and embraced whatever denomination offered the greatest discount.”
2. Buffett is not certain if the smoking deal applied to all three of the Buffett kids or only his sisters, but they all got the $2,000 on graduation on roughly the same terms.
3. Most of the money was invested in U.S International Securities and Parkersburg Rig & Reel, which he replaced with Tri-Continental Corporation on January 1, 1951. Howard contributed most of the money and Warren contributed the ideas and work, or “sweat equity,” to an informal partnership.
4. Benjamin Graham and David L. Dodd, Security Analysis, Principles and Technique. New York: McGraw-Hill, 1934.
5. Barbara Dodd Anderson letter to Warren Buffett, April 19, 1989.
6. David Dodd letter to Warren Buffett, April 2, 1986.
7. The Union Pacific Railroad in the nineteenth century was the most scandal-plagued and bankruptcy-riddled of the nation’s railroads.
8. William W. Townsend, Bond Salesmanship. New York: Henry Holt, 1924. Buffett read this book three or four times.
9. Interview with Jack Alexander.
10. And, according to Buffett, one woman, Maggie Shanks.
11. Interview with Fred Stanback.
12. Anyone of a certain age from the Mid-Atlantic region would still recognize the slogan, “Snap back with Stanback,” and “neuralgia” as an old-fashioned term for a bad headache.
13. The SEC’s Regulation FD now bars selective disclosure of material nonpublic information and requires that it be disseminated simultaneously by companies to the market on a timely basis.
14. At $2,600 a year, Schloss as an investor was making less than the average secretary in 1951, who took home $3,060, according to a survey of the National Secretaries Association.
15. Interview with Fred Stanback.
16. Interview with Walter Schloss. Some material is from The Memoirs of Walter J. Schloss. New York: September Press, 2003.
17. Benjamin Graham, The Memoirs of the Dean of Wall Street. New York: McGraw-Hill, 1996.
18. Stryker & Brown was the “market maker,” or principal dealer, in Marshall-Wells stock.
19. Marshall-Wells was the second Graham and Dodd stock he had bought, after Parkersburg