Challenges Faced by Warren Buffett: Obstacles and Turning Points

Life is full of challenges, and Warren Buffett faced many. Discover key struggles and how they were overcome.

Warren Buffett is a highly successful American investor and philanthropist. He is the Chairman and CEO of Berkshire Hathaway, a conglomerate holding company. His exceptional investment acumen has made him one of the most renowned investors globally. As of May 2025, Buffett's estimated net worth is approximately $160.2 billion, ranking him among the wealthiest individuals in the world. He is widely respected for his value investing philosophy and long-term investment strategies.

Sections (7)

Full Timeline Early Life & Education Career & Achievements Success & Recognition Challenges & Struggles Controversies & Scandals Legacy & Impact

1950: Rejected by Harvard Business School

In the spring of 1950, Warren Buffett was rejected by Harvard Business School.

1974: SEC Investigation into Wesco Financial Acquisition

In 1974, the SEC opened a formal investigation into Warren Buffett and Berkshire Hathaway's acquisition of Wesco Financial, due to possible conflict of interest.

1990: Scandal involving John Gutfreund

In 1990, a scandal involving John Gutfreund (former CEO of Salomon Brothers) surfaced.

August 1991: Gutfreund Left Salomon Brothers

In August 1991, John Gutfreund left Salomon Brothers and Warren Buffett became chairman until the crisis passed.

1998: Acquisition of General Re

In 1998, Warren Buffett acquired General Re (Gen Re) as a subsidiary, a deal that presented difficulties.

March 15, 2005: Greenberg Resigns from AIG

On March 15, 2005, the AIG board forced Greenberg to resign from his post as chairman and CEO.

February 9, 2006: AIG Agrees to Pay Fine

On February 9, 2006, AIG agreed to pay a $1.6 billion fine.

2007: Subprime mortgage crisis criticism

During the subprime mortgage crisis of 2007, part of the Great Recession starting in 2007, Warren Buffett faced criticism for allocating capital too early, resulting in suboptimal deals. He also called the downturn in the financial sector that started in 2007 "poetic justice".

2007: PacifiCorp Canceled Coal-Fired Power Plants

In 2007, Warren Buffett's PacifiCorp, a subsidiary of his MidAmerican Energy Company, canceled six proposed coal-fired power plants due to pressure from regulators and citizen groups.

2008: Berkshire earnings drop and 'Buy American' op-ed

In 2008, Warren Buffett wrote "Buy American. I am." for an opinion piece published in the New York Times. Also in 2008, Berkshire Hathaway suffered a 77% drop in earnings during Q3.

March 2009: Comments on the economy and inflation

In March 2009, Warren Buffett stated in a cable television interview that the economy had "fallen off a cliff" and expressed fears about the re-emergence of 1970s-style inflation.

2009: Divestment from ConocoPhillips

In 2009, Warren Buffett divested his failed investment in ConocoPhillips, saying to his Berkshire investors.

2010: Settlement with Gen Re

In 2010, the U.S. government agreed to a $92 million settlement with Gen Re, allowing the Berkshire Hathaway subsidiary to avoid prosecution in the AIG case.

April 11, 2012: Diagnosis of Prostate Cancer

On April 11, 2012, Warren Buffett was diagnosed with stage I prostate cancer during a routine test and announced he would begin two months of daily radiation treatment from mid-July.

August 20, 2014: Fine for failing to report stock purchase

On August 20, 2014, Berkshire Hathaway was fined $896,000 for failing to report as required the December 9, 2013 purchase of shares in USG Corporation.

June 2021: Comments on COVID-19 Pandemic's Economic Impact

In a June 2021 interview with CNBC, Warren Buffett said that the economic impact of the COVID-19 pandemic has increased economic inequality and bemoaned that most people are unaware that 'hundreds of thousands or millions' of small businesses have been negatively impacted. He also stated that the markets and the economy will likely be unpredictable well into the post-pandemic recovery period.