The Dexter Shoe Debacle: A Cautionary Tale of Corporate Hubris Warren Buffett's investment record is renowned, but his mistakes offer a more nuanced lesson in corporate finance.
Among these, the Dexter Shoe debacle stands out as a stark reminder of the dangers of hubris and poor decision making at the highest levels.
In 1993, Berkshire Hathaway acquired Dexter Shoe Company for $433 million in stock. This move has since become a cautionary tale about using appreciating currency to purchase depreciating assets.