If you had to choose one acquisition that best represents Warren Buffett's investment philosophy, which one would it be and why?

The Acquisition Case That Best Represents Warren Buffett's Investment Philosophy

The case I have chosen is Berkshire Hathaway's acquisition of See's Candies in 1972.

Why this case?

This acquisition best embodies Buffett’s core investment principles, including value investing, long-term holding, economic moats, and exceptional management. Here are the specific reasons:

Shift from "cigar butts" to quality businesses: Influenced by Charlie Munger, Buffett transitioned from Benjamin Graham-style "cigar butt investing" (buying cheap stocks below liquidation value) to investing in high-quality businesses. See’s Candies was not the cheapest target, but its brand value and pricing power made Buffett realize that "it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." This marked a pivotal evolution in his investment philosophy.
Classic demonstration of an economic moat: See’s Candies possessed a powerful brand moat (consumer loyalty and holiday gifting positioning), enabling it to consistently raise prices without losing sales. Buffett noted in multiple shareholder letters that See’s grew from ~$4 million in annual profits at acquisition to hundreds of millions today, driven by compounding and its moat—not heavy capital investment. This reflects Buffett’s emphasis on "wide moats": businesses that withstand competition and generate stable cash flows.
Long-term holding and compounding returns: Buffett held See’s for over 50 years without selling. It generated substantial annual free cash flow, which funded other Berkshire investments rather than expanding the candy business itself. This showcases Buffett’s "buy-and-hold-forever" strategy and the importance of efficient capital allocation. He once calculated that reinvesting See’s cash flows into equities would yield compounded returns far exceeding the initial investment.
Emphasis on management and culture: Post-acquisition, Buffett retained original management (e.g., Chuck Huggins) and granted them high autonomy. This aligns with his philosophy of "investing in outstanding managers," as he believes great management amplifies intrinsic value.
Recurring reference in shareholder letters: Buffett repeatedly used See’s in his letters as a teaching case to explain value investing essentials—intrinsic value calculation, opportunity cost, and patient holding. It became a "living textbook" of his investment philosophy.

Compared to other acquisitions (e.g., Burlington Northern Santa Fe in 2009), See’s is more representative: it marked the genesis of Buffett’s philosophical shift, and its small-scale investment yielded profound insights—perfectly illustrating the "less is more" essence of value investing. For anyone studying Buffett, this case is the essential starting point.