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A Stolen Pig, A Nervous Founder & A Regretful Fund Manager
Robert Noyce got expelled in his junior year from Grinnell College for stealing a 25 pound pig from a local farm for a fraternity dare.
The head of the Physics department intervened claiming Noyce was the best student he ever had. Noyce was let back in.
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The head of the Physics department intervened claiming Noyce was the best student he ever had. Noyce was let back in.
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Noyce co-founded Intel in 1968. Grinnell Endowment was principle source of capital for Intel in it’s formative years, double digits stakes (Grinnell also invested in a shabby textile maker — which turned out pretty good).
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As Intel continued to do well Grinnell’s stake in the company swelled to more than 1/3rd of the fund.
Joe Rosenfield was trustee of the Grinnell Endowment. Buffett, his close friend, was on the college board.
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Joe Rosenfield was trustee of the Grinnell Endowment. Buffett, his close friend, was on the college board.
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Noyce used to call Rosenfield almost every day urging him to sell some of the stock. He feared, as a grateful alumnus, that should the company fail it would take his Alma Mater’s Endowment down with it.
Grinnell sold all of its Intel in 70s and a third of its Berkshire.
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Grinnell sold all of its Intel in 70s and a third of its Berkshire.
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Rosenfield later said this was the worst investment decision of his life.
The opportunity cost was billions. Grinnell Endowment is currently $1.5 BN.
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The opportunity cost was billions. Grinnell Endowment is currently $1.5 BN.
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Before you thump the table next time about any stock, remember even founders don’t know what their company is worth.
You could have Buffett advising you and you will still be prone to greed & fear.
Grinnell did put its money in a little know fund in 70s — Sequoia.
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You could have Buffett advising you and you will still be prone to greed & fear.
Grinnell did put its money in a little know fund in 70s — Sequoia.
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