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, serving as the chairman and CEO of Berkshire Hathaway. Renowned for his investment acumen, Buffett is globally recognized as one of the foremost investors. As of February 17, 2025, Forbes estimates his net worth at $149.6 billion, positioning him as the seventh wealthiest person worldwide.

Sections (7)

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

1950: Rejection from Harvard Business School

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

1966: Partnership Closed to New Money

In 1966, Warren Buffett closed his partnership to new money, later stating that the textile business had been his worst trade.

1974: SEC Investigation

In 1974, the SEC opened an investigation into Warren Buffett and Berkshire Hathaway's acquisition of Wesco Financial over possible conflict of interest, but no charges were brought.

1977: Purchase of Buffalo Evening News

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

1990: Salomon Brothers Scandal

In 1990, a scandal surfaced involving John Gutfreund and Paul Mozer at Salomon Brothers.

1998: Coca-Cola Peaked

In 1998, The Coca-Cola Company peaked at $86, raising questions about the wisdom in keeping some of Berkshire's major holdings, including The Coca-Cola Company.

1998: Acquisition of General Re

In 1998, Warren Buffett acquired General Re (Gen Re) as a subsidiary, but it presented challenges due to inadequate underwriting standards.

2007: PacifiCorp Cancels Coal-Fired Power Plants

In 2007, 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.

2007: Criticism during subprime mortgage crisis

In 2007, Warren Buffett faced criticism during the subprime mortgage crisis, part of the Great Recession, for allocating capital too early, resulting in suboptimal deals.

March 2009: Comments on the economy

In March 2009, Warren Buffett said in a cable television interview that the economy had "fallen off a cliff" and people had really changed their habits. He also feared that inflation levels that occurred in the 1970s might re-emerge.

2009: Divestment from ConocoPhillips

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

April 11, 2012: Diagnosis of Prostate Cancer

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

August 20, 2014: Fine for failing to report USG Corporation shares 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: Buffett on Economic Inequality and COVID-19

In a June 2021 interview with CNBC, Warren Buffett stated that the economic impact of the COVID-19 pandemic increased economic inequality, noting the negative impact on small businesses. He also said that the markets and the economy would likely be unpredictable well into the post-pandemic recovery period.