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Warren Buffett's Greatest Investments Of All Time

Gillette/Procter & Gamble

First Shares Purchased: 1989

Date Sold: Still Held

Amount Made: $4.32 Billion

Percentage Gain: N/A

Procter & Gamble (NYSE: PG) does not seem to be a top gainer for Berkshire Hathaway with a $20 million unrealized gain on a $4.321 billion cost basis as of September 30, 2010. You have to go back to the days of Gillette to see where Buffett got extraordinary gains after P&G first acquired the razor company. The Gillette Company cost basis was listed as $600 million in 2001 with an equity value of $3.206 billion. When P&G announced the acquisition, the deal reportedly gave Buffett a one-day paper profit of about $650 million and a total gain of $4.4 billion overall. Warren Buffett called it “a dream merger” and then decided to increase his P&G holdings. Buying a big razor blade maker stake turned out to be one of his best bets ever. Team Buffett makes accounting changes from time to time and after acquisitions, and that may contribute to why there was only a $20 million unrealized gain as of September 30, 2010 on what is listed as a cost basis of $4.321 billion.

(AP Photo/Al Behrman)

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