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105-425: USG's most significant brands include Sheetrock Brand Gypsum Panels, Securock Brand Glass-Mat Sheathing and Sheetrock Brand All Purpose Joint Compound. In December 2013, Warren Buffett's Berkshire Hathaway became the largest shareholder in the company (holding roughly 30%) when it converted USG convertible notes it had acquired in 2008 to common stock. In June 2018, USG entered into an agreement to be purchased by

210-561: A hostile takeover of USG. USG immediately instituted a plan to buy back 20 percent of its common stock in an effort to fend off the takeover. By December 1986, however, USG had purchased Samuel , William, and Hyman Belzberg's 4.9 percent stake, for $ 139.6 million. In October 1987, Texas oilman Cyril Wagner Jr. and Jack E. Brown, through Desert Partners, LP, attempted a hostile takeover of USG, buying 9.84% of USG's outstanding stock. USG decided to fight this attempt by offering $ 42 per share ($ 37 in cash and $ 5 in pay in kind debenture ) plus

315-491: A margin of safety . That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing. Buffett worked from 1951 to 1954 at his father's firm, Buffett-Falk & Co., as an investment salesman; from 1954 to 1956 at Graham-Newman Corp. as a securities analyst; from 1956 to 1969 at several investment partnerships as the general partner; and from 1970 as chairman and CEO of Berkshire Hathaway Inc . In 1951, Buffett discovered that Graham

420-505: A selenite placer mining claim. In 1911, the mine was sold to unnamed buyers, rumored to be the plaster or gypsum trust from the eastern U.S. The sale was for between $ 50,000 (equivalent to $ 1,640,000 in 2023) and $ 100,000 (equivalent to $ 3,270,000 in 2023). In 1922, the Pacific Portland Cement company started construction of a mill at what is now known as Empire. In 1924, the Pacific Portland Cement company completed

525-470: A $ 35 deduction for the use of his bicycle and watch on his paper route. In 1945, as a high school sophomore, Buffett and a friend spent $ 25 to purchase a used pinball machine, which they placed in the local barber shop . Within months, they owned several machines in three different barber shops across Omaha. They later sold the business to a war veteran for $ 1,200. Buffett's interest in the stock market and investing dated back to his schoolboy days spent in

630-659: A $ 67 million non-refundable fee. On June 20, 2006, USG announced their Joint Plan of Reorganization was confirmed by two judges for the United States Bankruptcy Court and the United States District Court for the District of Delaware , allowing the company to complete the bankruptcy case and emerge from bankruptcy. USG announced a $ 900 million payment to the new trust was made that day and two subsequent payments totaling $ 3.05 billion would be made within

735-407: A 650-seat restaurant expansion, and two levels of below-grade parking for 160 cars. USG had its own entrance with a lobby and occupied the first nine floors exclusively and parts of the 11th floor. Italian marble is used as cladding and also in the highly ornate interior. The interior also features gold leaf and satin-finish brown and American oak wood trim. Parts of the building lobbies were used in

840-410: A Joint Plan of Reorganization to emerge from bankruptcy. Under the agreement, USG would create a trust to pay asbestos personal injury claims. USG's bank lenders, bondholders and trade suppliers would be paid in full with interest. Stockholders would retain ownership of the company. To pay for the trust USG would use cash it had accumulated during the bankruptcy, new long-term debt, a tax rebate from

945-781: A branch of the Washoe County Library System . Ernest M. Johnson Elementary School in Empire opened in 1958. Circa 2000, it had 62 students. By 2000, the school's address was already in Gerlach. The school moved to an addition at the Gerlach High School site in Gerlach in 2001. In 2011, Gerlach High was converted into the Johnson Elementary School for K-12. The award-winning 2020 film Nomadland , based loosely on

1050-531: A decreased demand for drywall. USG cut costs by closing some of its operations, including the shuttering of its Empire, Nevada facility in 2011. William C. Foote, the company's CEO for almost 20 years, retired in 2010, and 30-year USG veteran James S. Metcalf was elected Chairman, President and CEO. Metcalf implemented the company's "Plan to Win" which involved strengthening its core manufacturing operations and L&W Supply distribution business, diversifying sources of revenues and profitability, and differentiating

1155-428: A fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income tax on her interest income during a period of zero inflation, or pays no income taxes during years of 5 percent inflation. In his article, " The Superinvestors of Graham-and-Doddsville ", Buffett rebutted the academic efficient-market hypothesis , that beating

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1260-603: A key reason for the purchase was to diversify Berkshire Hathaway from the financial industry. Measured by market capitalization in the Financial Times Global 500 , Berkshire Hathaway was the eighteenth largest corporation in the world as of June 2009. In 2009, Buffett divested his failed investment in ConocoPhillips , saying to his Berkshire investors, I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. I in no way anticipated

1365-560: A lot, but people have really changed their habits like I haven't seen". Additionally, Buffett feared that inflation levels that occurred in the 1970s—which led to years of painful stagflation —might re-emerge. In 2009, Buffett invested $ 2.6 billion as a part of Swiss Re 's campaign to raise equity capital. Berkshire Hathaway already owned a 3% stake, with rights to own more than 20%. Also in 2009, Buffett acquired Burlington Northern Santa Fe Corp. for $ 34 billion in cash and stock. Alice Schroeder , author of Snowball , said that

1470-401: A manufacturer of gypsum based agricultural and construction additives. In 2016, the town again became a company town under the new auspices of EMC. Since that date both the town and the mine have been partially reopened by the new owners. In 1907, Alex Ranson discovered gypsum near what later became Empire. In late 1909, Alex Ranson, Nick Curnow, E. H. Cowles and James Raser filed a patent for

1575-437: A nine-hole golf course, an airport, and a post office. There was also a day-care facility for the employees of Empire, and a convenience store with a gas station, the only store for more than 50 miles (80 km). Since EMC reopened the town in 2016, the store and gas station have been re-opened by EMC. The Catholic Church of Empire also holds services on a monthly basis. The economy of Empire includes serving tourists heading to

1680-425: A philanthropist). At 15, Warren made more than $ 175 monthly delivering Washington Post newspapers. In high school, he invested in a business owned by his father and bought a 40-acre farm worked by a tenant farmer. He bought the land when he was 14 years old with $ 1,200 of his savings. By the time he finished college, Buffett had amassed $ 9,800 in savings (about $ 125,000 today). In 1947, Buffett matriculated at

1785-422: A portion of its investment portfolio. 77% of the outstanding shares were turned in. Buffett had reaped a 50 percent return on investment in just two years. In 1962, Buffett became a millionaire with the success of his partnerships, which by then had grown to 11 entities and held in excess of $ 7,178,500, of which over $ 1,025,000 belonged to Buffett. At the start of the year, he merged the various partnerships into

1890-399: A profitable corporation. USG once again declared bankruptcy on June 25, 2001, under Chapter 11 to manage the growing asbestos litigation costs. USG was the eighth company in an 18-month period that was forced to utilize Chapter 11 to resolve asbestos claims. In the prior two decades, 27 companies filed for protection under Chapter 11 because of asbestos litigation. Since 1994, U.S. Gypsum

1995-477: A series of investment partnerships. In 1957, Buffett operated three investment partnerships. By 1959, the total had grown to six partnerships. That year, Buffett met future partner Charlie Munger . In 1961, Buffett revealed that 35% of the partnerships' assets were invested in the Sanborn Map Company . He explained that Sanborn stock sold for only $ 45 per share in 1958, but the company's investment portfolio

2100-578: A site which it occupied until March 2007. Known as the USG building, the structure is part of the dual-tower AT&T Corporate Center , which was completed in 1989. The building was designed by Adrian D. Smith, FAIA, RIBA Design Partner at Skidmore, Owings & Merrill and constructed by Morse Diesel within its $ 110 million construction budget. The USG building is 538 ft (164 m) tall and houses 35 floors and 1,100,000 square feet (100,000 m) of space, including 12,000 square feet (1,100 m) of retail,

2205-561: A stockbroker while taking a Dale Carnegie public speaking course. Using what he learned, he felt confident enough to teach an "Investment Principles" night class at the University of Nebraska-Omaha . The average age of his students was more than twice his own. During this time he also purchased a Sinclair gas station as a side investment but it was unsuccessful. In 1954, Buffett accepted a job at Benjamin Graham 's partnership. His starting salary

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2310-521: A stub stock worth $ 7. Desert Partners was unable to match the offer and lost the proxy fight at a shareholder's meeting. To pay for the offer, USG took a poison pill by borrowing $ 1.6 billion from 135 banks, and issuing $ 600 million in 13.25% subordinated debentures due in 2000 and $ 260 million in 16% pay-in-kind debentures due in 2008. To help pay for all the new debt, USG sold off: and instituted large workforce reductions. The sell-off and workforce reduction of 7% were not enough to allow USG to service

2415-550: A subsidiary in a deal that presented difficulties — according to the Rational Walk investment website, "underwriting standards proved to be inadequate", while a "problematic derivatives book" was resolved after numerous years and a significant loss. Gen Re later provided reinsurance after Buffett became involved with Maurice R. Greenberg at AIG in 2002. During a 2005 investigation of an accounting fraud case involving AIG, Gen Re executives became implicated. On March 15, 2005,

2520-517: A supporter of index funds for people who are either not interested in managing their own money or do not have the time. Buffett is skeptical that active management can outperform the market in the long run, and has advised both individual and institutional investors to move their money to low-cost index funds that track broad, diversified stock market indices. Buffett said in one of his letters to shareholders that "when trillions of dollars are managed by Wall Streeters charging high fees, it will usually be

2625-514: A textile manufacturing firm, Berkshire Hathaway, assuming its name to create a diversified holding company . Buffett emerged as the company's chairman and majority shareholder in 1970. In 1978, fellow investor and long-time business associate Charlie Munger joined Buffett as vice-chairman. Since 1970, Buffett has presided as the chairman and largest shareholder of Berkshire Hathaway, one of America's foremost holding companies and world's leading corporate conglomerates . He has been referred to as

2730-420: A total area of 5.1 square miles (13.3 km ), all land. Its elevation is 4,040 feet (1,230 m) above sea level. Gypsum mining is the staple of Empire's economy. After the recent reopening of the town, Empire has returned to being a classic company town, though smaller than before. Once again, all residents of Empire are associated with the mining operations of the town. Until its temporary closure in 2011,

2835-462: A true story, was partly filmed in Empire, and carefully documents some of the difficulties and adventures faced by a former Empire resident, Fern, after the closure of the town's gypsum plant. The main character is played by Frances McDormand . Fern was also a former employee at the town's Gypsum mill. Due to the plant closure, Fern, now age 62, is forced to leave town, and she starts a nomadic lifestyle, living out of her van, and taking on odd jobs along

2940-511: A viable competitor to traditional lime plaster. Sackett patented the new drywall product as Sackett Board in 1894. Since gypsum was plentiful, available at a relatively low price, and used a simple manufacturing process, new firms flooded and fragmented the market, placing constant downward pressure on prices. On December 27, 1901, 30 gypsum and plaster companies merged to form the United States Gypsum Company (USG), resulting in

3045-617: Is 60 miles (97 km) to the south on a reservation owned by the Pyramid Lake Paiute Tribe . For 63 years, from 1948 to 2011, Empire was a company town of the US Gypsum Corporation , a manufacturer of gypsum based construction sheetrock , and once had a population of more than 750 people. US Gypsum closed the mine and the town in 2011; the mine and town were bought in 2016 by the Empire Mining Company (EMC),

3150-686: Is a national board member of Girls, Inc. , and does charitable work through the Susan A. Buffett Foundation. Empire, Nevada Empire is an unincorporated community and census-designated place (CDP) in Washoe County , Nevada , with a population estimated at 65 (2021). Prior to the 2010 census it was part of the Gerlach–Empire census-designated place, it is now part of the Reno – Sparks Metropolitan Statistical Area . The nearest town, Nixon ,

3255-468: Is doing something that is deeply evil to make money for himself." Buffett's writings include his annual reports and various articles. Buffett is recognized by communicators as a great story-teller, as evidenced by his annual letters to shareholders. He has warned about the pernicious effects of inflation: The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has

USG Corporation - Misplaced Pages Continue

3360-464: Is estimated to contain a deposit of 25 million tons of gypsum. USG operates an active narrow gauge railway , the last industrial narrow gauge railway in the United States. The 3 ft ( 914 mm ) gauge line runs north for 26 miles (42 km) from the plant at Plaster City (formerly known as Maria ) to the gypsum quarry. The line hauls gypsum rock from the quarry to the plant. The line

3465-585: Is one of the best-known investors in the world. As of October 2024, he had a net worth of $ 147 billion, making him the eighth-richest person in the world . Buffett was born in Omaha, Nebraska . The son of US congressman and businessman Howard Buffett , he developed an interest in business and investing during his youth. He entered the Wharton School of the University of Pennsylvania in 1947 before graduating from

3570-459: Is to figure out how nobody gets left too far behind. After the difficulties of the economic crisis , Buffett managed to bring its company back to its pre-recession standards: in Q2 2014, Berkshire Hathaway made $ 6.4 billion in net profit, the most it had ever made in a three-month period. On August 14, 2014, the price of Berkshire Hathaway's shares hit $ 200,000 a share for the first time, capitalizing

3675-652: The Buffalo Courier-Express . Both papers lost money until the Courier-Express folded in 1982. In 1979, Berkshire began to acquire stock in ABC . Capital Cities announced a $ 3.5 billion purchase of ABC on March 18, 1985, surprising the media industry, as ABC was four times bigger than Capital Cities at the time. Buffett helped finance the deal in return for a 25% stake in the combined company. The newly merged company, known as Capital Cities/ABC (or CapCities/ABC),

3780-620: The S&;P 500 was "pure chance", by highlighting the results achieved by a number of students of the Graham and Dodd value investing school of thought. In addition to himself, Buffett named Walter J. Schloss , Tom Knapp, Ed Anderson ( Tweedy, Browne LLC ), William J. Ruane ( Sequoia Fund ), Charlie Munger (Buffett's partner at Berkshire), Rick Guerin (Pacific Partners Ltd.), and Stan Perlmeter (Perlmeter Investments). In his November 1999 Fortune article, he warned of investors' unrealistic expectations: Let me summarize what I've been saying about

3885-495: The Sherman Act during the period 1960–1973, through engaging in a combination and conspiracy in restraint of interstate trade and commerce in the manufacture and sale of gypsum board. In July 1975, after the jury was committed to deliberate, it became apparent that the jury was heading for a deadlock. Defense counsel moved for a mistrial, but the trial judge denied the request, although he indicated that, if no verdict were rendered by

3990-537: The United States Congress , and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School and graduated from what was then Woodrow Wilson High School in 1947, where his senior yearbook picture reads: "likes math; a future stockbroker". After finishing high school and finding success with his side entrepreneurial and investment ventures, Buffett wanted to skip college to go directly into business but

4095-605: The United States District Court for the Northern District of California , a series of civil antitrust cases were heard that came to be known as In re Gypsum Antitrust Cases . As a result, USG (together with National Gypsum Company and Kaiser Gypsum Company ) were found to have violated § 1 of the Sherman Act for conspiring to establish and maintain prices of gypsum wallboard. In December 2012, USG (together with National Gypsum , Lafarge North America and Georgia-Pacific ),

4200-511: The University of Nebraska at 19. He went on to graduate from Columbia Business School , where he molded his investment philosophy around the concept of value investing pioneered by Benjamin Graham . He attended New York Institute of Finance to focus on his economics background and soon pursued a business career. He later began various business ventures and investment partnerships, including one with Graham. He created Buffett Partnership Ltd. in 1956 and his investment firm eventually acquired

4305-652: The Washington Post Company . Buffett became close friends with Katharine Graham , who controlled the company and its flagship newspaper and joined its board. In 1974, the SEC opened a formal investigation into Buffett and Berkshire's acquisition of Wesco Financial , due to possible conflict of interest. No charges were brought. In 1977, Berkshire indirectly purchased the Buffalo Evening News for $ 32.5 million. Antitrust charges started, instigated by its rival,

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4410-491: The Wharton School of the University of Pennsylvania . He would have preferred to focus on his business ventures, but enrolled due to pressure from his father. Warren studied there for two years and joined the Alpha Sigma Phi fraternity. He then transferred to the University of Nebraska where he graduated with a Bachelor of Science in business administration in 1951. After being rejected by Harvard Business School in

4515-917: The subprime mortgage crisis of 2007 and 2008, part of the Great Recession starting in 2007, that he had allocated capital too early resulting in suboptimal deals. "Buy American. I am." he wrote for an opinion piece published in the New York Times in 2008. Buffett called the downturn in the financial sector that started in 2007 " poetic justice ". Buffett's Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and several of his later deals suffered large mark-to-market losses. On September 23, 2008, Berkshire Hathaway acquired 10 percent of perpetual preferred stock of Goldman Sachs . Some of Buffett's put options (European exercise at expiry only) that he wrote (sold) were running at around $ 6.73 billion mark-to-market losses as of late 2008. The scale of

4620-459: The "Oracle" or "Sage" of Omaha by global media as a result of having accumulated a massive fortune derived from his business and investment success. He is noted for his adherence to the principles of value investing, and his frugality despite his wealth. Buffett has pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation . He founded

4725-512: The AIG board forced Greenberg to resign from his post as chairman and CEO after New York state regulators claimed that AIG had engaged in questionable transactions and improper accounting. On February 9, 2006, AIG agreed to pay a $ 1.6 billion fine. In 2010, the U.S. government agreed to a $ 92 million settlement with Gen Re, allowing the Berkshire Hathaway subsidiary to avoid prosecution in

4830-433: The AIG case. Gen Re also made a commitment to implement "corporate governance concessions", which required Berkshire Hathaway's chief financial officer to attend General Re's audit committee meetings and mandated the appointment of an independent director. In 2002, Buffett entered in $ 11 billion worth of forward contracts to deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts

4935-407: The Empire gypsum mine was one of the longest continually operating mines in the U.S., operating for 88 years from 1923 to 2011. While many mines were shut down during World War II as resources were diverted to the war effort, gypsum was determined to be an "essential" resource and the mine was never closed during that period. During its heyday under U.S. Gypsum, the town had a church, a public pool,

5040-474: The Giving Pledge in 2010 with Bill Gates , whereby billionaires pledge to give away at least half of their fortunes. Warren Edward Buffett was born on August 30, 1930 in Omaha, Nebraska , as the second of three children and the only son of Leila (née Stahl) and Congressman Howard Buffett . He began his education at Rose Hill Elementary School. In 1942, his father was elected to the first of four terms in

5145-508: The SEC based on the extent to which the gypsum they use comes from synthetic or natural sources. USG has a large gypsum plant located 17 miles (27 km) west of El Centro, California , along highway Interstate 8 , at Plaster City . The Plaster City location makes Sheetrock brand gypsum panels. The gypsum is mined from a quarry located 20 miles (32 km) to the north, in the Fish Creek Mountains of Imperial County . The quarry

5250-537: The Sherman Act. The claim stemmed from US Gypsum's 1929 cross-licensing agreements for its patented wallboard, which set prices at which the wallboard must be sold. In 1950 the Supreme Court forced US Gypsum and its six licensees — who produced all of the wallboard sold east of the Rocky Mountains — to cease setting prices, and US Gypsum was enjoined from exercising its patent-licensing privilege. During 1969–1974 in

5355-427: The U.S. Federal Reserve to a hedge fund and stated that the bank is generating "$ 80 billion or $ 90 billion a year probably" in revenue for the U.S. government. Buffett also advocated further on the issue of wealth equality in society: We have learned to turn out lots of goods and services, but we haven't learned as well how to have everybody share in the bounty. The obligation of a society as prosperous as ours

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5460-497: The USG acquisition of the Sackett Plaster Board Company, inventor of Sackett Board, which was a panel made of multiple layers of plaster and paper. Patented by USG in 1912, a new manufacturing process produced boards with a single layer of plaster and paper that could be joined flush along a wall with a relatively smooth surface. Originally called Adamant Plaster Board, the product became known as Sheetrock in 1917, with

5565-597: The bottom line dominated the 1980s and led to a restructuring of the company. On January 1, 1985, USG Corporation was formed as a holding company — a reverse merger in which United States Gypsum Company became one of just nine operating subsidiaries. In the mid- to late-1990s, the company invested in a significant expansion of its manufacturing network, adding new high-speed wallboard manufacturing operations in Rainier, OR, Bridgeport, AL, and Aliquippa, PA. Other existing operations were substantially rebuilt or modernized, including

5670-489: The building in early 2007. The new building is occupied 65% by USG and 10% by Humana Inc. As an incentive for USG to remain in the downtown Chicago area, the city of Chicago created a redevelopment agreement that contributed $ 6.5 million to the construction of the new building. In turn, USG agreed to maintain at least 500 full-time equivalent jobs at all times for a period of ten years at the new corporate headquarters. Gypsum wallboard manufacturing facilities are reported to

5775-632: The company at $ 328 billion. While Buffett had given away much of his stock to charities by this time, he still held 321,000 shares worth $ 64.2 billion. On August 20, 2014, Berkshire Hathaway was fined $ 896,000 for failing to report as required the December 9, 2013 purchase of shares in USG Corporation . A 2023 ProPublica article based on a leak of confidential IRS data alleged that Buffett had made equity trades in his personal portfolio involving companies that Berkshire Hathaway bought or sold during

5880-481: The company entered Chapter 11 bankruptcy proceedings to resolve legacy asbestos lawsuits. Asbestos was a minor ingredient in some specialty products that the company had stopped selling almost 40 years earlier, in the 1970s. The company's operations remained healthy and profitable while it was in Chapter 11. When the bankruptcy was completed in 2006, all creditors were repaid in full and USG shareholders retained equity in

5985-623: The company from competitors through innovative products and services. The company returned to profitability in the first quarter of 2013, posting net earnings of $ 2 million, followed by $ 26 million in net income in the second quarter of 2013. In 2020, the 2011 closure of its Empire, Nevada operation was referenced in the movie Nomadland . USG Corporation has the following significant subsidiaries: In 1992, USG moved its corporate headquarters from 101 South Wacker Drive to 125 S. Franklin Street in Chicago,

6090-399: The company had working capital of $ 19 per share. This did not include the value of fixed assets (factory and equipment). Buffett took control of Berkshire Hathaway at a board meeting and named a new president, Ken Chace, to run the company. In 1966, Buffett closed the partnership to new money. He later claimed that the textile business had been his worst trade. He then moved the business into

6195-470: The company. In a Wall Street Journal article dated February 15, 2006, Warren Buffett said, "It's the most successful managerial performance in bankruptcy that I've ever seen." A $ 3.95 billion trust was created to handle all existing and potential future asbestos lawsuits , thus permanently resolving the asbestos litigation issue. USG adapted during the Great Recession , which hit the residential and commercial construction markets in mid-2006, resulting in

6300-440: The creation of the first nationwide gypsum company in the United States. The new company combined the operations of 37 mining and calcining plants producing agricultural and construction plaster. Directors of the new firm selected B.W. McCausland of Michigan for its first president; in 1905, he was succeeded by his previous Alabaster Company business partner's son, Sewell Avery, who served in the role for 35 years. In 1909, Avery led

6405-507: The crisis in debt and equity markets. In 2008, Buffett became the richest person in the world, garnering a total net worth estimated at $ 62 billion by Forbes and at $ 58 billion by Yahoo , dethroning Bill Gates , who had been number one on the Forbes list for 13 consecutive years. In 2009, Gates regained the top position on the Forbes list, with Buffett shifted to second place. Both of

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6510-508: The customers' lounge of a regional stock brokerage near his father's own brokerage office. His father took interest in cultivating and educating the young Warren's curiosity surrounding the subject of business and investing, even at one point taking him to visit the New York Stock Exchange when he was 10. At 11, he bought three shares of Cities Service Preferred for himself, and three for his sister Doris Buffett (who also became

6615-529: The debt payments ($ 800,000 per day) in the economic downturn. The poison pill was too much for the corporation to survive. On March 17, 1993, USG filed a pre-packaged bankruptcy petition that included a 50-to-1 reverse stock split . USG's stock dipped to 28 cents per share and the corporation emerged from bankruptcy 38 days later on May 6, 1993. The corporation's debt was reduced by $ 1.4 billion and interest costs dropped from $ 320 million per year to $ 170 million per year. The plan worked and USG re-emerged to be

6720-422: The difficulties of knowing when to sell in the company's 2004 annual report: That may seem easy to do when one looks through an always-clean, rear-view mirror. Unfortunately, however, it's the windshield through which investors must peer, and that glass is invariably fogged. In March 2009, Buffett said in a cable television interview that the economy had "fallen off a cliff ... Not only has the economy slowed down

6825-550: The dramatic fall in energy prices that occurred in the last half of the year. I still believe the odds are good that oil sells far higher in the future than the current $ 40–$ 50 price. But so far I have been dead wrong. Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars. The merger with the Burlington Northern Santa Fe Railway ( BNSF ) closed upon BNSF shareholder approval during Q1 of 2010. This deal

6930-438: The end of the school year. After that date, Empire had empty homes and a large shuttered plant that made it seem almost like a ghost town. The ZIP Code , 89405, was also discontinued. During the years that the mill and town were both closed (2011–2016), U.S. Gypsum first erected a large fence around the entire town and plant complex; it then retained two employees to patrol and maintain the property. It also brought two llamas onto

7035-607: The end of the week, he would then reconsider the mistrial motions. The following morning, the jury returned guilty verdicts against each of the defendants. The Court of Appeals for the Third Circuit reversed the convictions, and that ruling was subsequently affirmed by the United States Supreme Court on the grounds that: In 1940, the U.S. Justice Department filed suit against USG and six other wallboard manufacturers, charging them with price fixing under §§ 1 and 2 of

7140-407: The federal government, and an innovative rights offering. Existing USG stock owners would be issued rights to buy new USG stock at a set price of $ 40 per share. These rights could be exercised or sold. The $ 1.8 billion rights offering would be backstopped by Berkshire Hathaway Inc., meaning Berkshire Hathaway would buy all the new shares not bought. For the service, USG would pay Berkshire Hathaway

7245-414: The filming of the 1994 film, Ri¢hie Ri¢h . In 2005, USG announced it would not be renewing its lease at the 125 S. Franklin Street building and instead would move to a new building at 550 W. Adams developed by Fifield Companies. The base building architect is De Stefano + Partners, with The Environments Group providing the interior space design and construction. USG entered a 15-year lease, and occupied

7350-432: The five years following the agreement, and Buffett also received a 10% dividend (callable within three years). In February 2009, Buffett sold some Procter & Gamble Co. and Johnson & Johnson shares from his personal portfolio. In addition to suggestions of mistiming, the wisdom in keeping some of Berkshire's major holdings, including The Coca-Cola Company, which in 1998 peaked at $ 86, raised questions. Buffett discussed

7455-645: The instrument at stockholder meetings and other opportunities. His love of the instrument led to the commissioning of two custom Dairy Queen ukuleles by Dave Talsma, one of which was auctioned for charity. In 1952, Buffett married Susan at Dundee Presbyterian Church . The following year, they had their first child, Susan Alice . She was followed by Howard (b. 1954) and Peter (b. 1958). The couple began living separately in 1977, although they remained married until Susan's death in July 2004. Their only daughter Susan lives in Omaha,

7560-613: The insurance sector, and, in 1985, the last of the mills that had been the core business of Berkshire Hathaway was sold. In a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn and Co, a privately owned Baltimore department store. In 1967, Berkshire paid out its first and only dividend of 10 cents. In 1969, Buffett liquidated the partnership and transferred their assets to his partners including shares of Berkshire Hathaway. He lived solely on his salary of $ 50,000 per year and his outside investment income. In 1973, Berkshire began to acquire stock in

7665-673: The line was 19.63 miles (31.59 km). Two years after completion of the line (1924), the track was sold to the Pacific Portland Cement Company . USG purchased the line from the Pacific Portland Cement Company in 1946. In 1947, the first diesel engine was operated on the line. The USG plant at Plaster City is currently served by the Union Pacific Railroad (UP). In 1973, six wallboard manufacturers (including USG) were charged with violating §1 of

7770-422: The managers who reap outsized profits, not the clients". In 2007, Buffett made a bet with numerous managers that a simple S&P 500 index fund will outperform hedge funds that charge exorbitant fees. By 2017, the index fund was outperforming every hedge fund that made the bet against Buffett. Buffet has a long-standing aversion to using the services of investment banks via Berkshire Hathaway. This dynamic

7875-410: The men's values dropped, to $ 40 billion and $ 37 billion respectively—according to Forbes, Buffett lost $ 25 billion over a 12-month period during 2008/2009. In October 2008, the media reported that Buffett had agreed to buy General Electric (GE) preferred stock. The operation included special incentives: he received an option to buy three billion shares of GE stock, at $ 22.25, over

7980-452: The move came as a surprise to many investors and observers. During the interview, in which he revealed the investment to the public, Buffett stated that he was impressed by the company's ability to retain corporate clients and said, "I don't know of any large company that really has been as specific on what they intend to do and how they intend to do it as IBM". In May 2012, Buffett's acquisition of Media General, consisting of 63 newspapers in

8085-599: The move of their mill to the current location of Empire from a location near Mound House, Nevada near what was then known as Empire and the Carson River mills . The company called the new plant Empire. U.S. Gypsum bought the town in 1948. Empire reached a maximum population of 750 in the early 1960s. Amid a slump in the construction industry, the gypsum plant in Empire closed its doors on January 31, 2011, eliminating 95 jobs. Residents with children were allowed to continue inhabiting their company homes through June 20, 2011,

8190-435: The nearby Black Rock Desert and hunting. Since 1991, Burning Man , a week-long experimental festival with 78,850 participants (as of 2017 ), has been held nearby. The event is responsible for around 20% of the sales at the few commercial establishments in the area, which include the closest permanent fuel and grocery stops to the event site. The Black Rock Desert is also the site of many other recreational activities throughout

8295-508: The needle" at Berkshire with newspaper acquisitions, but he anticipates an annual return of 10 percent. The Press of Atlantic City became Berkshire's 30th daily newspaper, following other purchases such as Virginia, U.S.' Roanoke Times and The Tulsa World in Oklahoma, U.S. During a presentation to Georgetown University students in Washington, D.C. , in late September 2013, Buffett compared

8400-610: The new term credited to USG sales representative D.L. Hunter of Fort Dodge, Iowa. By the 1930s, the company's policy of diffusion of manufacturing facilities, vertical integration and product diversification allowed it to operate profitably every year during the Great Depression . The 1933 Chicago World’s Fair featured buildings made almost entirely out of sheetrock panels, which led to the brand's first major advertising campaign. The 1950s and 1960s saw expansion into Mexico and other international markets. Recession and its effect on

8505-488: The next 12 months if Congress failed to enact legislation establishing a national asbestos personal injury trust fund, such as the FAIR Act. Warren Buffett Warren Edward Buffett ( / ˈ b ʌ f ɪ t / BUF -it ; born August 30, 1930) is an American businessman, investor, and philanthropist who currently serves as the chairman and CEO of Berkshire Hathaway . As a result of his investment success, Buffett

8610-404: The potential loss prompted the SEC to demand that Berkshire produce, "a more robust disclosure" of factors used to value the contracts. Buffett also helped Dow Chemical pay for its $ 18.8 billion takeover of Rohm & Haas . He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway, which provided $ 3 billion, underlining his instrumental role during

8715-462: The privately-held building materials company Knauf . It operates as an independent subsidiary of Knauf and continues to remain headquartered in Chicago, Illinois. The deal closed in April 2019. In 1890, New York Coal Tar Chemical Company employees Fred L. Kane and Augustine Sackett developed plaster board by, first, strengthening the plaster with Plaster of Paris sandwiched between heavy paper, creating

8820-537: The property to keep the grass trimmed. In mid-2016, U.S. Gypsum sold the town and the mine to the Empire Mining Company, thus workers began to move back into the town to work under the new mine owners. Since 2016, both the mine and the town have been partially reopened by the new owners of the mine, with a total population of 65 (2021). According to the United States Census Bureau , the Empire CDP has

8925-425: The same quarter or the quarter before, raising concerns about conflicts of interest. On three dates between 2009 and 2012, Buffett sold shares of Johnson and Johnson, Walmart, and Wells Fargo, with the sales totaling $ 80 million in value. Although Buffett has not commented, Berkshire Hathaway's Vice Chairman Charlie Munger dismissed the allegations, saying "I don’t think there’s the slightest chance that Warren Buffett

9030-552: The single entity Buffett Partnership, Ltd., which would be his primary investment vehicle for the remainder of the decade. Buffett invested in and eventually took control of a textile manufacturing company, Berkshire Hathaway . He began buying shares in Berkshire from Seabury Stanton , the owner, whom he later fired. Buffett's partnerships began purchasing shares at $ 7.60 per share. In 1965, when Buffett's partnerships began purchasing Berkshire aggressively, they paid $ 14.86 per share while

9135-566: The south-eastern U.S., was announced. The company was the second news print purchase made by Buffett in one year. Interim publisher James W. Hopson announced on July 18, 2013, that the Press of Atlantic City would be sold to Buffett's BH Media Group by ABARTA, a private holding company based in Pittsburgh , U.S. At the Berkshire shareholders meeting in May 2013, Buffett explained that he did not expect to "move

9240-470: The spring of 1950, Buffett enrolled at Columbia Business School of Columbia University upon learning that Benjamin Graham taught there. He earned a Master of Science in economics from Columbia in 1951. After graduating, Buffett attended the New York Institute of Finance . The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek

9345-456: The stock market: I think it's very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they've performed in the past 17. If I had to pick the most probable return, from appreciation and dividends combined, that investors in aggregate—repeat, aggregate—would earn in a world of constant interest rates, 2% inflation, and those ever hurtful frictional costs, it would be 6%! Buffett has been

9450-502: The wallboard manufacturing plant in East Chicago, Indiana . In 1999, USG acquired Sybex, Inc. the holding company for Beadex (a competing joint compound manufacturer) and Synkoloid. Other USG subsidiaries at the time included Alabaster Assurance Company, CGC, Donn Products, Exploracion de Yeso, Grupo Yeso, Gypsum Engineering, H & B Gypsum, L&W Supply, La Mirada Products Co., Inc, Red Top Technology, and Yeso Panamericano. In 2001,

9555-485: The year. After the closure of the plant in 2011, the grocery store remained the only source of provisions within 100 miles (160 km) of the Black Rock Desert. Primary highway access to Empire is provided by State Route 447 . Empire Airport is a dirt airfield suitable only for light planes. Washoe County School District is the area school district. Gerlach K-12 School is the local school. It includes

9660-465: Was $ 12,000 a year (about $ 136,000 today). There he worked closely with Walter Schloss . Graham was adamant that stock picks should provide a wide margin of safety after weighing the trade-off between their price and their intrinsic value. In 1956, Benjamin Graham retired and closed his partnership. At this time Buffett, who had amassed personal savings over $ 174,000 (about $ 1.95 million today) , decided to return to Omaha, where he would quickly start

9765-459: Was accused in a class action for allegedly violating federal antitrust laws, through raising prices on drywall products by as much as 35 percent, as well as halting a longstanding practice of letting customers lock in prices for the duration of a construction project. USG stated that it did not participate, or engage in, any unlawful conduct. In November 1986 the Belzberg brothers of Canada attempted

9870-508: Was also reported in Barron's , Insider , and Seeking Alpha , among others. In 1949, Buffett developed a crush on a young woman whose boyfriend had a ukulele . In an attempt to compete, he bought one of the instruments and has been playing it ever since. Though the attempt to capture her attention was unsuccessful, his music interest became a key part of his becoming a part of Susan Thompson 's life, and led to their marriage. Buffett often plays

9975-523: Was announced that over the course of the previous eight months, Buffett had bought 64 million shares of International Business Machine Corp (IBM) stock, worth around $ 11 billion. This unanticipated investment raised his stake in the company to around 5.5 percent—the largest stake in IBM alongside that of State Street Global Advisors . Buffett had said on numerous prior occasions that he would not invest in technology because he did not fully understand it, so

10080-468: Was forced to sell some stations due to Federal Communications Commission ownership rules. The two companies also owned several radio stations in the same markets. In 1987, Berkshire Hathaway purchased a 12% stake in Salomon Inc., making it the largest shareholder and Buffett a director. In 1990, a scandal involving John Gutfreund (former CEO of Salomon Brothers ) surfaced. A rogue trader , Paul Mozer,

10185-655: Was given Federal Reserve approval to buy back Berkshire's preferred stock in Goldman. Buffett had been reluctant to give up the stock, which averaged $ 1.4 million in dividends per day, saying: I'm going to be the Osama bin Laden of capitalism. I'm on my way to an unknown destination in Asia where I'm going to look for a cave. If the U.S. Armed forces can't find Osama bin Laden in 10 years, let Goldman Sachs try to find me. In November 2011, it

10290-452: Was named in more than 250,000 asbestos-related personal injury claims, and paid more than $ 450 million (before insurance) to manage and resolve asbestos-related litigation. USG received more than 22,000 new claims since the beginning of 2001. USG's asbestos personal injury costs (before insurance) rose from $ 30 million in 1997 to more than $ 160 million in 2000, and were expected to exceed $ 275 million in 2001. On February 17, 2006, USG announced

10395-713: Was on the board of GEICO insurance. Taking a train to Washington, D.C., on a Saturday, he knocked on the door of GEICO's headquarters until a janitor admitted him. There he met Lorimer Davidson, GEICO's vice president, and the two discussed the insurance business for hours, and Buffett made his first purchase of GEICO stock. Davidson would eventually become Buffett's lifelong friend and a lasting influence, and would later recall that he found Buffett to be an "extraordinary man" after only fifteen minutes. Buffett wanted to work on Wall Street but both his father and Ben Graham urged him not to. He offered to work for Graham for free, but Graham refused. Buffett returned to Omaha and worked as

10500-602: Was originally built by the Imperial Gypsum Company Railroad and was owned by the Imperial Valley Gypsum and Oil Corporation. The railroad built from the San Diego & Arizona Railway at Plaster City to the quarry. Surveying commenced in April 1921, grading on October 3, 1921 and construction was completed on September 15, 1922. Commercial operation commenced on October 14, 1922. The total length of

10605-504: Was over $ 2 billion. Buffett announced in June 2006 that he would gradually give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006—the largest contribution going to the Bill and Melinda Gates Foundation . In 2007, in a letter to shareholders, Buffett announced that he was looking for a younger successor, or perhaps successors, to run his investment business. Buffett ran into criticism during

10710-661: Was overruled by his father. Buffett showcased an interest in business and investing at a young age. He was inspired by a book he borrowed from the Omaha public library at age seven, One Thousand Ways to Make $ 1000 . Much of Buffett's early childhood years were enlivened with entrepreneurial ventures. In one of his first business ventures, Buffett sold chewing gum, Coca-Cola , and weekly magazines door to door . He worked in his grandfather's grocery store. While still in high school, he made money delivering newspapers, selling golf balls and stamps, and detailing cars, among other means. On his first income tax return in 1944, Buffett took

10815-604: Was submitting bids in excess of what was allowed by Treasury rules. When this was brought to Gutfreund's attention, he did not immediately suspend the rogue trader. Gutfreund left the company in August 1991. Buffett became chairman of Salomon until the crisis passed. In 1988, Buffett began buying The Coca-Cola Company stock, eventually purchasing up to 7% of the company for $ 1.02 billion. It would turn out to be one of Berkshire's most lucrative investments and one which it still holds. In 1998 Buffett acquired General Re (Gen Re) as

10920-459: Was valued at approximately $ 44 billion (with $ 10 billion of outstanding BNSF debt) and represented an increase of the previously existing stake of 22%. In June 2010, Buffett defended the credit-rating agencies for their role in the US financial crisis, claiming: Very, very few people could appreciate the bubble . That's the nature of bubbles—they're mass delusions. On March 18, 2011, Goldman Sachs

11025-420: Was worth $ 65 per share. This meant that Sanborn's map business was being valued at "minus $ 20". Buffett eventually purchased 23% of the company's outstanding shares as an activist investor , obtaining a seat for himself on the board of directors, and allied with other dissatisfied shareholders to control 44% of the shares. To avoid a proxy fight , the board offered to repurchase shares at fair value, paying with

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