Warren Buffett’s Top Plays: #25 Disney

This video teaches about the top 25 most important investment decisions made by Warren Buffett, the greatest investor of all time. The ranking is based on how much he was willing to commit to a certain investment at the time of purchase, rather than hindsight bias. The 25th most important deal is his 1966 investment in Disney, made through his investment partnership, the Buffett Partnership Limited. He spent $4m for 5% of the company, which represented 9% of his then net worth, and sold the shares a year later for a 55% return. Despite the stock selling for $131 today, he jokingly says it was not a brilliant decision. He was interested in Disney because of its recurring value, lower actor costs and it was selling at a fair price. The lesson from this investment is to not sell a wonderful company too early, as “time is the friend of the wonderful company, the enemy of the mediocre”.