The Most Important Buffett Story

Source: Morgan Housel

Everyone knows the investing duo of Warren Buffett and Charlie Munger. But 40 years ago there was a third member, Rick Guerin. Warren, Charlie, and Rick made investments together. Then Rick kind of disappeared. Turns out he was highly leveraged with margin loans, and during the 1974 recession had to sell his Berkshire Hathaway stock to Warren for less than $40 a share. Buffett later told Mohnish Pabrai:

Charlie and I always knew that we would become incredibly wealthy. We were not in a hurry to get wealthy; we knew it would happen. Rick was just as smart as us, but he was in a hurry.

Too much, too fast.