Which investment principle is perfectly illustrated by the investment in American Express during the 'Salad Oil Scandal'?

Buffett's Letter to ShareholdersBuffettInvestingWarren BuffettValue Investing
Views: 1Created At: 7/30/2025Updated At: 10/4/2025
Mirja Vogt-Beyer
Mirja Vogt-Beyer

Answer

Investing in American Express during the "salad oil scandal" perfectly illustrates Warren Buffett's investment principle: "Be fearful when others are greedy and greedy when others are fearful." This exemplifies the essence of value investing—acting decisively to acquire shares of high-quality companies when they become temporarily undervalued due to market panic over a transient event, while focusing on their long-term intrinsic value.

Created At: 08-05 08:22:46Updated At: 09-30 07:49:23