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Dexter Shoe

sold to Berkshire for $433M

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’19’20’21’221’23’24’25’261
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In the moments

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Billy

Harold Alfond invented the outlet store, then sold Dexter Shoe to Buffett for $433M

Billy of the Week Harold Alfond went from shoe-store boy to factory owner, and turned imperfect factory seconds into the first outlet store, spawning outlet malls. He sold Dexter Shoe to Berkshire Hathaway for $433 million in an all-stock deal.

“And so that was kind of like one of his inventions. Anyways, he ends up selling the company to Berkshire Hathaway. So he sells it to Warren Buffett for $433 million. In an all-stock deal of Berkshire. And I think you added some notes here, but all I know is that later on, um, Warren Buffett apparently said like, you know, this was one of the worst investments I ever made.”
EP 215 · 39:33 · SHAAN
Read at 39:33
mfmindex.com№ 0215-2373
Story

Buffett's Dexter Shoe: the worst deal in the Guinness Book of World Records

Sam recounts how Buffett bought Dexter Shoe calling it a flawless business, but cheap imports gutted it and the all-stock payment compounded the loss into billions. Buffett later said it goes down as the worst deal ever, made worse because the older Maine workers couldn't retrain.

“he goes, if you look in the Guinness Book of World Records, it goes down as the worst deal ever. But the worst part is now all these people are all out of work and they pretty much are too old to learn a new trade and we— and they're screwed. And so he calls it one of the worst deals of all time.”
EP 215 · 40:37 · SAM
Read at 40:37
mfmindex.com№ 0215-2437