Question

Which of the following is true about the 89 year-old financial wizard Warren Buffet?

1.

He was formerly the Secretary of the Treasury under Richard Nixon in 1968

2.

He was the Chairman of the Federal Reserve during the 2008/2009 financial crisis

3.

He purchased American Express Company shares following the Great Salad Oil Scandal in 1963

4.

He was an early venture capital investor in Uber and WeWork in 2013

Answer 1

Sol:

Which of the following is true about the 89 year-old financial wizard Warren Buffet?

Answer is 3. He purchased American Express Company shares following the Great Salad Oil Scandal in 1963

Warren Buffett purchased American Express company shares in 1963 after its shares have fall down substantially due to Salad Oil Scandal by Allied crude and vegetable oil limited. To secure financing one of its subsidiaries had used salad oil as collateral worth millions of dollars, however it turned out that the salad oil which was kept as collateral was fake and did not exist at all, leading to huge losses for the bank and fall of American Express shares. Warren Buffet saw a buying opportunity and purchased the shares as he believed that the losses were temporary and there is a huge potential in the brand. The shares of American Express went up quickly and in the process he made a good amount of profit.