Buffett's Worst Mistake: Why Did Dexter Shoe Cost Berkshire Tens of Billions?

Case Overview

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In 1993, Warren Buffett acquired Dexter Shoe for $433 million using Berkshire Hathaway stock.

Core Pitfalls

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1. Misjudging the Economic Moat: Low-cost imports destroyed domestic margins.
2. Paying with Berkshire Stock: The shares are now worth tens of billions of dollars.