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, the chairman and CEO of Berkshire Hathaway, is a highly successful American investor and philanthropist. Renowned for his investment acumen, he is one of the world's most well-known investors. With an estimated net worth of $154.4 billion as of April 5, 2025, Buffett ranks among the wealthiest individuals globally.

Sections (7)

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

1974: SEC Investigation into Wesco Financial Acquisition

In 1974, the SEC opened a formal investigation into Warren Buffett and Berkshire's acquisition of Wesco Financial due to possible conflict of interest, but no charges were brought.

1977: Berkshire Purchased Buffalo Evening News

In 1977, Berkshire indirectly purchased the Buffalo Evening News for $32.5 million, leading to antitrust charges instigated by its rival, the Buffalo Courier-Express.

1990: Scandal Involving John Gutfreund Surfaced

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

August 1991: Gutfreund Left Salomon

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

1998: Acquired General Re (Gen Re)

In 1998 Warren Buffett acquired General Re (Gen Re) as a subsidiary in a deal that presented difficulties due to inadequate underwriting standards and a problematic derivatives book.

2006: Buffett Disowns Granddaughter Nicole

In 2006, Warren Buffett disowned his son Peter's adopted daughter, Nicole, after she participated in the documentary "The One Percent."

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2007: PacifiCorp Cancels Coal-Fired Power Plants

In 2007, Buffett's PacifiCorp, a subsidiary of MidAmerican Energy Company, canceled six proposed coal-fired power plants, including Utah's Intermountain Power Project Unit 3 and Jim Bridger Unit 5, due to pressure from regulators and citizen groups.

2007: Criticism During Subprime Mortgage Crisis

In 2007, with the onset of the subprime mortgage crisis and the Great Recession, Warren Buffett faced criticism for allocating capital too early, which led to suboptimal deals. He called the downturn in the financial sector that started in 2007 "poetic justice".

2008: Buffett's "Buy American" Opinion Piece and Berkshire's Earnings Drop

In 2008, Warren Buffett published an opinion piece in the New York Times titled "Buy American. I am." advocating for investing in American companies. Also in 2008, Berkshire Hathaway experienced a 77% drop in earnings during Q3, and several of Buffett's later deals suffered significant mark-to-market losses.

March 2009: Buffett Comments on Economy and Inflation

In March 2009, Warren Buffett stated in a cable television interview that the economy had "fallen off a cliff" and people had drastically changed their habits. He also expressed concerns about the potential resurgence of 1970s-style inflation.

2009: Buffett Divests ConocoPhillips Investment

In 2009, Warren Buffett divested his failed investment in ConocoPhillips, addressing his Berkshire investors regarding the matter.

2009: Buffett Sold Shares of Johnson and Johnson

In 2009, Warren Buffett sold shares of Johnson and Johnson, with the sales totaling $80 million in value. This was revealed by a 2023 ProPublica article.

April 11, 2012: Prostate Cancer Diagnosis

On April 11, 2012, Warren Buffett was diagnosed with stage I prostate cancer during a routine test.

2012: Buffett Sold Shares of Wells Fargo

In 2012, Warren Buffett sold shares of Wells Fargo, with the sales totaling $80 million in value. This was revealed by a 2023 ProPublica article.

August 20, 2014: Berkshire Hathaway Fined for Reporting Violation

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

June 2021: Buffett Comments on COVID-19 Economic Impact

In June 2021, Warren Buffett stated in a CNBC interview that the economic impact of the COVID-19 pandemic has increased economic inequality. He noted the negative impact on numerous small businesses and predicted unpredictability in the markets and economy during the post-pandemic recovery, despite efforts from the Biden administration and the Federal Reserve.

2023: ProPublica Article Alleges Conflict of Interest

In 2023, a ProPublica article, based on leaked IRS data, alleged that Warren Buffett made equity trades in his personal portfolio involving companies that Berkshire Hathaway bought or sold during the same or preceding quarter, raising conflict of interest concerns.