Search+Intelligent InvestingSynopsisWarren Buffett once told his shareholders that without one particular acquisition, Berkshire Hathaway “would be lucky to be worth half of what it is today”. The company he meant had no famous brand, no cost advantage, not even an actuary – and its sales collapsed by 85% over 14 years while Buffett cheered. This is the story of which company it was, why it kept shrinking on purpose, and how its strange discipline built the money machine that made Berkshire Hathaway what it is.Growth is the one God every stock market worships. A company that grows is forgiven almost anything; a company that shrinks is punished for everything. No chief executive stands up at an annual meeting and promises shareholders that revenue will fall this year, and keep falling; and no board would keep him if he did. The entire machinery of markets, from analyst models to bonus plans, is built on a single assumption: More is better.Warren ETMarkets.com 30 mins readJul 16, 2026, 10:41:00 PM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership
Warren Buffett said Berkshire Hathaway would be worth half without this company – although it kept shrinking
Warren Buffett once told his shareholders that without one particular acquisition, Berkshire Hathaway “would be lucky to be worth half of what it is today”. The company he meant had no famous brand, no cost advantage, not even an actuary – and its sales collapsed by 85% over 14 years while Buffett cheered. This is the story of which company it was, why it kept shrinking on purpose, and how its strange discipline built the money machine that made Berkshire Hathaway what it is.
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