Future Multibagger in the making?
Let me tell you the story of Warren Buffett and American Express. In 1963, there was a huge scandal in the US named "The Salad Oil Crisis" A man named Anthony de Angelis defrauded some major American financial institutions of about $180 million. You can read more about it here: https://en.m.wikipedia.org/wiki/Salad_Oil_scandal One of the major companies that was hit was American Express. AE had provided Mr. Anthony with most of the loans keeping the inventory of soybean oil as collateral. It was only later that they found out that the storage tanks contained mostly water with a little oil on top. The scandal caused huge loss to AE and their share price almost halved from $60 a share to $35. It was at this time that Warren Buffett starting buying up shares of AE. Conventional investors and fund houses were left puzzled as to why Buffett was investing in a loss making company. But what they didn't know was that Buffett had already done his homework. He knew that American...