In 1961, A Chemical Engineer And His Wife Invested $25,000 Each With A Family Friend From Nebraska. The Friend’s Name Was Warren Buffett. When They Died In The 1990s, Their Combined Estates Were Worth More Than $750 Million
Quick Read
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Two $25,000 investments in Buffett’s 1961 partnership grew into Berkshire (BRK-A) shares worth a combined $750 million by the late 1990s.
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Donald, a former Eastman Kodak (KODK) engineer who co-edited a major chemistry encyclopedia, and Mildred lived modestly and never discussed their fortune.
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The Othmers donated nearly everything to charity, but a $135 million hospital endowment meant to last forever was fully depleted after the hospital closed.
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As Greg Abel succeeds Warren Buffett, an early bet shows what patience built. In 1961, Donald and Mildred Othmer each gave $25,000 to a partnership run by Buffett, an old friend from Omaha.
A Brooklyn Professor and a Former Omaha Teacher
Donald joined the Polytechnic Institute of Brooklyn as a chemical engineering instructor in 1932. He headed the department from 1937 to 1961, became a distinguished professor in 1961 and became professor emeritus in 1976. By one account he never officially retired. He had worked at Eastman Kodak (NYSE:KODK), contributed to more than 40 patents and co-edited the Kirk-Othmer Encyclopedia of Chemical Technology.
Mildred was a former teacher and buyer for her mother’s dress store in Omaha. Both were Omaha natives with no children. The New York Times reported they “lived comfortably but not ostentatiously and rarely talked about their money.”, according to Reason
Donald died on Nov. 1, 1995, at 91. Mildred died in April 1998 at 90.
A Stake Left Alone for Decades
When the partnership dissolved in 1970, the couple received about 14,500 shares of Berkshire Hathaway (NYSE:BRK-A) at $42 each, worth about $609,000.
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When Donald died in 1995, Berkshire traded at just under $30,000 a share. His shares sold for about $210 million. By July 1998, the stock reached $77,000. Mildred held 7,500 shares, worth $578 million.
