The Buffett Chronicles: Lesser-Known Investments That Struck Gold

In the evolving landscape of financial markets, few names command as much respect and admiration as Warren Buffett. Often hailed as the Oracle of Omaha, Buffett’s reputation as an astute investor precedes him. 

While his high-profile investments in companies like Coca-Cola Co. and Apple Inc. have made headlines around the world, it’s the lesser-known bets that have been raking in billions for the legendary investor.

While Buffett has credited his insurance business Geico as Berkshire Hathaway Inc.'s "crown jewel," several strategic acquisitions that have remained under the radar have propelled Buffett to one of the wealthiest people in the world. Take a look at some of Buffett's lesser-known investment bets that have reaped billions.

Marmon Holdings Inc. 

Berkshire Hathaway acquired a 60% stake in Marmon Holdings Inc., a manufacturing and services group, for $4.5 billion in 2007. The conglomerate disclosed plans to gradually acquire the remaining 40% through staged periodic acquisitions within the next six years. 

At the time Marmon Holdings reported an annualized revenue of $7 billion, marking Berkshire Hathaway's largest acquisition not taking into account insurance companies. 

Μarmon Holdings has since grown its business to operate more than 100 autonomous manufacturing and services companies. The conglomerate's net annual revenue is $10 billion, reflecting a 42% growth since its acquisition in 2007. 

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See's Candies

Buffett acquired See's Candies in 1972 for $25 million, claiming it to be his "dream business." At the time, the company's annual revenue was $30 million, while pretax income amounted to approximately $4 million. 

The candy business, which required additional capital of $40 million, generated approximately $1.9 billion in pretax income for Berkshire Hathaway, according to the company's 2014 shareholder letter.

"See's has thus been able to distribute huge sums that have helped Berkshire buy other businesses that, in turn, have themselves produced large distributable profits. (Envision rabbits breeding.) Additionally, through watching See's in action, I gained a business education about the value of powerful brands that opened my eyes to many other profitable investments," Buffett said in the shareholder letter. 

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Buffett almost walked away from See's Candies, as the controlling entity wanted approximately $30 million for the business in 1972. While Berkshire Hathaway Vice President Charlie Munger, Buffett's right-hand man, agreed with the asking price, Buffett had a different opinion, as he didn't want to pay over three times the business' net tangible assets. 

"To begin with, I almost blew the See's purchase. The seller was asking $30 million, and I was adamant about not going above $25 million. Fortunately, he caved. Otherwise, I would have balked, and that [$2] billion would have gone to somebody else," Buffett said in Berkshire Hathaway's 2007 shareholder letter. 

New England Asset Management Inc.

Many don't know that Buffett's equities portfolio is not limited to 45 stocks bought under Berkshire Hathaway. 

In 1998, the Oracle of Omaha acquired insurance company General Re for $22 billion, consequently acquiring the latter's subsidiary New England Asset Management Inc. 

As of Sept. 30, 2023, New England Asset Management holds approximately 11 positions in equities, bonds and exchange-traded funds, collectively valued at over $614 million. 

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