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Warren Buffett invested $200 million in a flowery furnishings retailer with a CEO who likes to cite him – Wikibusiness

Warren Buffett invested $200 million in a flowery furnishings retailer with a CEO who likes to cite him – Wikibusiness

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warren buffettKevin Lamarque/Reuters

  • Warren Buffett invested greater than $200 million in a flowery furnishings retailer with a boss who has a historical past of quoting the legendary investor.
  • Buffett’s Berkshire Hathaway conglomerate purchased $206 million price of shares in RH final quarter, in line with a regulatory submitting.
  • “As Warren Buffett said, if the skies darkened and there’s an opportunity it’s going to rain gold, you want to run outside with washtubs and not teaspoons,” RH CEO Gary Friedman stated final 12 months.
  • View Enterprise Insider’s homepage for extra tales.


Warren Buffett invested greater than $200 million in a flowery furnishings retailer whose boss has a historical past of quoting the legendary investor.

Buffett’s Berkshire Hathaway conglomerate purchased $206 million price of shares in RH final quarter, its newest submitting with the Securities and Change Fee reveals.

The corporate, previously referred to as Restoration {Hardware}, sells every thing from sofas and sheepskin rugs to work and poker desk. Its CEO, Gary Friedman, has quoted Buffett on at the least two events.

“If the market undervalues a company, as Warren Buffett said, if the skies darken and there’s an opportunity it’s going to rain gold, you want to run outside with washtubs and not teaspoons, right,” he stated on an earnings name in December.

At an investor day in November 2017, he stated: “Warren Buffett likes to say, ‘Time favors the well-led and well-managed company.’”

RH’s promise of unimaginable abroad development was most likely a much bigger draw.

“We just got back from Europe and saw some things that are going to make New York look like yesterday’s news, seriously,” Friedman stated on RH’s earnings name in September. “I think the opportunity internationally is probably — could be three to four times what we do in North America.”

“If you’ve ever seen ‘Finding Nemo,’” he added, “The fish tried to get out of the fish tank and they figured out how to get into a plastic bag and get out on the dock and then they jump into the ocean. But they’re still in the plastic bag and they look at each other and they go, ‘Now what?’ And we had one of those ‘now what’ moments.”

RH grew its internet revenues by 9% to $1.Three billion within the first half of this 12 months, driving its internet revenue up 13% to just about $100 million, its newest earnings present. Information of Buffett’s stake drove its refill 7% on Friday, elevating its market capitalization to over $3.5 billion.

 

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