Warren Buffett recently reflected on his 2005 acquisition of Forest River, a deal that has proven to be one of Berkshire Hathaway’s most lucrative investments. The founder of Forest River, Pete Liegl, surprised Buffett with a salary request of $100,000 per year.
Despite initial reservations, Buffett agreed to the terms and was impressed by Liegl’s leadership skills. Over the past 19 years, Liegl has delivered exceptional performance, growing Forest River’s revenues by 6.4% in 2024 and increasing unit sales by 7.9%.
Forest River remains a key contributor to Berkshire Hathaway’s consumer products group, with a proven track record of resilience despite economic challenges. Buffett acknowledged that not every business acquisition works out, but leaders like Liegl demonstrate the impact of a single winning decision.
The deal has returned billions of dollars to Berkshire shareholders and proved that talent can drive success, rather than elite education. As Buffett noted in his latest shareholder letter, leaders like Liegl are “one of a kind” and have made a “breathtaking difference over time.”
Source: https://in.benzinga.com/markets/25/02/43934068/pay-me-100000-per-year-warren-buffett-was-stunned-by-pete-liegls-modest-salary-request-but-the-deal-made-berkshire-billions