Bill Ackman Once Asked A $700 Million Question To Warren Buffett On Leverage. The Oracle Of Omaha's Response Shows Where He Places Trust When He Invests In A Company
Bill Ackman Once Asked A $700 Million Question To Warren Buffett On Leverage. The Oracle Of Omaha's Response Shows Where He Places Trust When He Invests In A Company
Buffett responded thoughtfully, acknowledging the high leverage involved but underscoring the importance of leadership in managing such risks.Bill Ackman once sought insights from Berkshire Hathaway's chairman Warren Buffett about the investment appeal of the Salomon Brothers.
比爾·阿克曼曾向伯克希爾·哈撒韋的董事長禾倫·巴菲特詢問關於所羅門兄弟公司的投資吸引力。
What Happened: At the 1994 Berkshire Hathaway annual meeting, Ackman, then a young hedge fund manager, raised a critical question about Salomon Brothers.
發生了什麼：在1994年伯克希爾·哈撒韋年會上，阿克曼當時還是一位年輕的對沖基金經理，他提出了一個關於所羅門兄弟公司的關鍵問題。
He directed his question to Buffett, asking, "What is the appeal of the business to you, given its leverage of 30-to-1 and relatively modest returns on equity?"
他向巴菲特提問，問道：「鑑於其30比1的槓桿和相對溫和的股本回報，這個業務對你來說有什麼吸引力？」
Buffett responded thoughtfully, acknowledging the high leverage involved but underscoring the importance of leadership in managing such risks.
巴菲特深思熟慮地回應，承認了其中高槓杆的風險，但強調了領導力在管理這些風險中的重要性。
The Oracle of Omaha praised the efforts of Salomon's leaders, including Deryck Maughan, Bob Denham, and John McFarlane, who navigated the company through challenging times without prior discussions on compensation or guarantees.
奧馬哈的先知讚揚了所羅門公司領導者的努力，包括德里克·莫恩、鮑勃·登漢和約翰·麥克法蘭，他們在沒有事先討論薪酬或保障的情況下，引導公司渡過了艱難時期。
"The test will be whether they control the business in a way that leverage doesn't prove dangerous," Buffett stated, noting that businesses using significant leverage should expect higher returns on equity, given the inherent risk, but that successful management of that risk was paramount.
巴菲特表示：「考驗將是他們是否以一種方式控制業務，讓槓桿不會變得危險。」他指出，使用高槓杆的企業應該預期更高的股本回報，因爲其固有風險，但成功管理這種風險才是最重要的。
Why It Matters: Salomon Brothers, founded in 1910, was a major player on Wall Street, renowned for its fixed-income trading.
重要性：所羅門兄弟公司成立於1910年，是華爾街的重要參與者，以其固定收益交易而聞名。
In 1987, the bond trading firm revealed a $70 million loss from debt related to its junk bond trading activities. This set off a chain of events that contributed to the 1987 market crash, although other factors also played a role in the market's downturn.
1987年，這家債券交易公司披露因垃圾債券交易活動而造成的7千萬美元損失。這引發了一系列事件，導致了1987年的市場崩潰，儘管其他因素也在市場下跌中發揮了作用。
Salomon traders were caught submitting fraudulent bids for Treasury bonds in violation of trading regulations.
所羅門的交易員因違反交易法規而被發現提交虛假競標給國債債券型。
Just before the scandal, Buffett had invested $700 million in Salomon Brothers. The controversy resulted in a loss of one-third of his investment.
在醜聞發生之前，巴菲特在所羅門兄弟公司投資了70000萬美元。爭議導致他投資的三分之一損失。
To restore order during the turmoil, Buffett took control of the company for nine months, methodically removing those involved in the scandal.
爲了在動盪中恢復秩序，巴菲特控制了公司九個月，系統性地將那些參與醜聞的人清除。
By the time the firm was stabilized, it had been sold to Travelers Companies Inc. Buffett had walked away with a substantial profit, as his investment had more than doubled.
在公司穩定下來時，它已被出售給旅行者公司。巴菲特獲得了可觀的利潤，因爲他的投資已經翻了一番。
Travelers Group merged Salomon Brothers with Smith Barney, creating Salomon Smith Barney, which later became part of Citigroup following the 1998 merger between Travelers and Citicorp.
旅行者集團將所羅門兄弟與史密斯巴尼合併，創建了所羅門史密斯巴尼，這後來在1998年旅行者與花旗集團合併後成爲花旗集團的一部分。
Over time, Citigroup integrated and eventually dismantled the Salomon Smith Barney brand. By the mid-2000s, Salomon Brothers ceased to exist as a standalone entity.
隨着時間的推移，花旗集團整合並最終解散了所羅門史密斯巴尼品牌。到了2000年代中期，所羅門兄弟作爲一個獨立實體不再存在。
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
免責聲明：此內容部分由Benzinga Neuro生成，並由Benzinga編輯審核和發佈。
Photos courtesy: Wikimedia and Shutterstock
圖片來源：維基媒體和Shutterstock
譯文內容由第三人軟體翻譯。
