Greed and Fear: How the Great Salad Oil Swindle Led to One of Warren Buffett’s Greatest Investments

After a Swindler Almost Destroyed American Express, Buffett Saw the Importance of Long-Term Value Versus Short-Term Profit

Stephen Foerster
23 min readSep 12, 2022

photos of salad oil and Warren Buffett
Photos by Roberta Sorge on Unsplash and from Flickr (cropped), Creative Commons Attribution 2.0 Generic license

The story of the Great Salad Oil Swindle can be traced to June 1960, when an anonymous…

Stephen Foerster

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)