Warren Buffett’s Top Plays: #20 Kaiser Aluminum

Buffett made his first purchases of Kaiser Aluminum & Chemical through Berkshire Hathaway in 1977, acquiring 3% of the shares for $20.6 million, representing 12% of his net worth. He sold in 1981, resulting in a 35% return over a holding period of 3-4 years, which was not quite up to his usual standards. The company was priced at a low PE of 4, and its tangible assets and current earnings made it an attractive investment based on the principles of Benjamin Graham.