Thanks for that bit of info... would not have thought to search there for it!
Nice... makes it available for ALL who are now curious...
one of the early tales in the book is about how the phrase "watered down stock" cama about! Many think it has to do with stock dilution as we would discuss it on iHub! NOT!
Old Dan Drew was just another country bumpkin hustler... smart as heck, but a country hustler. BEFORE going into HIGH FINANCE, Drew was a cattle drover... went UP the Hudson and drove cows down to the city to feed folks. Sold the livestock to ASTOR the meat market mogul... who later built a hotel, or something. LOL
On one of those trips, Drew figured he'd get one up on Astor who PAID TOO LITTLE for the cows. So Drew restricted their watering headed down to NYC... JUST ENOUGH TO NOT COMPROMISE QUALITY, but still thirsty. Then, he stopped just outside of town and let them eat & drink their fill! (LMAO... don't know IF all seven stomachs got topped off, or not. But the cows were not on EMPTY!)
Did not take Astor long when the newly purchased herd began being butchered to realize he'd bought a LOT OF WATER at premium prices!
A LOT LIKE going to to the market today and buying meat... ham, poultry, prepared & vacuum packed steaks, etc., all in fine print saying "water added!"
Seems like Astor's successors have retained the practice of PASSING ON the costs of doing business!
"I call investing the greatest business in the world because you never have to swing... All day you wait for the pitch you like,... The problem when you're a money manager is that your fans keep yelling, 'Swing. you bum!'"
W. Buffett
