How Buffett Missed Intel [Acquired.fm]

<p>Audio source: <a href="https://www.acquired.fm/episodes/berkshire-hathaway-part-i">https://www.acquired.fm/episodes/berkshire-hathaway-part-i</a></p><p><strong>Transcript</strong></p><p>I think maybe in part because of this mindset of like I'm going to stay true to do what I'm good at, he makes the biggest missed opportunity ever maybe in history. I was teasing Ben, over the last couple days texting him saying, I've got something in this episode that I don't know if you know but is just the most unbelievable thing that you will never imagine.</p><p>Ben: Lay it on me.</p><p>David: In 1967, he writes his partners saying that he's introducing a new ground rule to the partnership. This one is quite literally the opposite of Don Valentine. He says, “We will not go into businesses where technology, which is way over my head, is crucial to the investment decision. I know about as much about semiconductors or integrated circuits as I do about the mating habits of this chrząszcz.” It a Polish word. It means beetle in Polish. Typical Warren way with words here. “This is very unfortunate.”</p><p>Ben: What was the company?</p><p>David: “Very unfortunate decision to make.”</p><p>Ben: Let’s see, 1967. It predates Microsoft by seven years, predates Apple. It’s way after IBM. What's around this time, DEC? No, it’s post-DEC.</p><p>David: No, you'll get it if you think about it enough. Silicon Valley, or just as we talked about it a lot on the show.</p><p>Ben: Is it an early Sequoia investment?</p><p>David: Just pre-Sequoia. Sequoia was started in 1972, but this is all the crew that Don Valentine—</p><p>Ben: Is it an Arthur Rock investment?</p><p>David: It is an Arthur Rock investment.</p><p>Ben: Is it Intel?</p><p>David: We're talking about Intel here.</p><p>Ben: No way.</p><p>David: Get this. Buffett, at this point, is on the board of Grinnell College in Iowa. He's a trustee of Grinnell College, which by the way, he was introduced to by Susie. Susie became an incredible civil rights activist and Grinnell College was