Warren Buffett: American Express. At that time, Warren Buffett was running a small investment partnership he’d started 8 years before with $105,000 he’d raised from friends and family. As Buffet’s mentor, the original value investor, Benjamin Graham, was watching with great interest as the Salad Oil Swindle unfolded. The “salad oil swindle” cost American Express $60 million-and that didn’t include lawyer’s fees. What happened was that the company began to divest its marginal operations. During the sale of two profitable accounts, it was discovered that one of those was sold with 800 million tons of vegetable oil missing. IT’S OIL OVER NOW In 1964, when American Express was still reeling from the massive hit to its finances and its reputation caused by the salad oil scam, an investor swooped in and bought $20 million worth of AmEx stock, garnering a five percent stake in the company. And on the basis of his stunningly large, almost totally fake inventory—De Angelis claimed 1.8 billion pounds of soybean oil, but had only 110 million—the swindle raised at least $180 The Great Salad Oil Swindle was an audacious fraud that nearly toppled American Express in the 1960s. It is a complicated story filled with valuable lessons about the fallibility of businessmen
Tina De Angelis and The Great Salad Oil Swindle are remembered today as an important milestone in the career of Warren Buffett. American Express was the biggest (dollar) victim of the swindle and their stock cratered. A then unknown small-town hedge fund manager called Warren Buffett Salad Oil, Cornered and Quartered. The Great Salad Oil Swindle was carried out by Anthony “Tino” De Angelis, who traded vegetable oil (soybean oil) futures which was an important ingredient in salad oil. De Angelis had previously been involved in a swindle involving the National School Lunch Act and the Adolph Gobel Co. When it was discovered that he had overcharged the government and delivered over 2 million pounds of uninspected meat, he ended up bankrupt. Con-men don’t stop being Anthony De Angelis’s scam, now known as the Great Salad Oil Swindle, started and ended with American Express. The credit card company had recently opened a new division called “Field Warehousing”, where they would grant loans to businesses based on their inventory and commodities (Frank 1). The Great Salad Oil Swindle was carried out by Anthony “Tino” De Angelis, who traded vegetable oil (soybean oil) futures which was an important ingredient in salad oil. De Angelis had previously been involved in a swindle involving the National School Lunch Act and the Adolph Gobel Co. When it was discovered that he had overcharged the government and delivered over 2 million pounds of uninspected meat, he ended up bankrupt. Con-men don’t stop being cons, they just try to learn from
25 Jul 2018 The Salad Oil Scandal involved a scheme by executives at a In 1963, the scam came to light, and over $175 million-worth of salad oil was missing, American Express had sent inspectors to check the inventory levels, but It stated also that these receipts purported to show that Allied Crude had stored varying amounts of soybean oil in the Bayonne tanks of American Express 21 Sep 2015 In 1964, when American Express was still reeling from the massive hit to its finances and its reputation caused by the salad oil scam, 30 Mar 2012 And on the basis of his stunningly large, almost totally fake inventory—De Angelis claimed 1.8 billion pounds of soybean oil, but had only 110
24 Jan 2014 Standing in the Shoes of the Oracle from Omaha: American Express, Stocks: AXP Most of us are familiar with the Salad Oil scandal of 1963 and the Oil Refining Co. and De Angelis had been successful (for a scam artist). The Salad Oil Scandal • Result • American Express • Allied Crude Vegetable Oil Refining • Tino • Brokerage firms - Williston and Beane & Ira Haupt and Co Tino De Angelis was a new customer, and Amex wrote him warehouse receipts The Great Salad Oil Swindle is a book by Wall Street Journal reporter Norman Here's why: Buffett dug deep into the AMEX's financials and saw that they were not technically liable for any of the losses on the oil swindle. At the same time, 12 Aug 2019 across him on American Express, where I had in-house friends who invested AmEx's float. They assured me that The Great Salad Oil Swindle 16 Nov 2018 inventory valuation fraud is the Great Salad Oil Swindle of 1962 that nearly including American Express, Bank of America and Bank Leumi. The American Stock Exchange - or AMEX - was acquired by the NYSE in 2008. After the great salad oil swindle in 1963 Warren Buffett bought a massive
It stated also that these receipts purported to show that Allied Crude had stored varying amounts of soybean oil in the Bayonne tanks of American Express 21 Sep 2015 In 1964, when American Express was still reeling from the massive hit to its finances and its reputation caused by the salad oil scam, 30 Mar 2012 And on the basis of his stunningly large, almost totally fake inventory—De Angelis claimed 1.8 billion pounds of soybean oil, but had only 110 The great US salad oil swindle was first brought to light publicly, by a strange oil in Tino's tanks, as certified by the irreproachable American Express stamp. This is a fascinating book about Tino De Angelis who bankrupted his firm and swindled others out of almost $200 million, especially American Express. After the