In 1962, Warren Buffett was still investing like a student of Ben Graham, buying cheap, unloved stocks with one last puff left in them.

That year, he took control of Dempster Mill, watched Harry Bottle turn a struggling business into a source of cash, and began buying shares of a dying New England textile company called Berkshire Hathaway.

At the time, Berkshire was just another cigar butt. It was statistically cheap, trading far below book value, but it was also a poor business in a declining industry.

Buffett thought he was buying one more bargain.

Instead, he accidentally began one of the greatest compounding stories in modern financial history.

This episode covers Buffett Partnership, Dempster Mill, the Kennedy Slide, Berkshire Hathaway’s textile roots, and the mistake that became an empire.