Charlie Munger on Why Buffett Bought Salomon

In 1987, Warren Buffett made his largest-ever investment in a single company when he came to the aid of struggling investment bank Salomon Brothers.

Q2 hedge fund letters, conference, scoops etc

The deal took Wall Street by surprise. Buffett has never been a fan of investment bankers and has a taxi industry numerous times over the years deriding their enthusiasm for deals that provided huge fees, putting their interests above those of their clients.

However, Buffett had a close relationship with Salomon's then chairman and CEO, John Gutfreund, who he had seen do non-greedy, client-friendly work for GEICO. With a lack of other investments on the table, attractive...