Salad oil: The making of Warren Buffett

In 1963, American Express, the world’s largest credit card company, was involved in a huge financial scandal. The company, previously synonymous with integrity and trust, became wrapped up in a fraud totalling $175m.As news of the scandal broke, the company’s share price halved. Investors were caught up in a huge panic that, they believed, threatened the company.After wearing out some shoe leather, an unknown 35-year old fund manager came to the opposite view. Warren Buffett poured most of his cash into this single stock and made a killing. Here’s how what became known as the salad oil scandal unfolded.Key PointsUnderstand...

In 1963, American Express, the world’s largest credit card company, was involved in a huge financial scandal. The company, previously synonymous with integrity and trust, became wrapped up in a fraud totalling $175m.

As news of the scandal broke, the company’s share price halved. Investors were caught up in a huge panic that, they believed, threatened the company.

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