'Pay Me $100,000 Per Year': Warren Buffett Was Stunned By Pete Liegl's Modest Salary Request, But The Deal Made Berkshire Billions

When Warren Buffett first met Pete Liegl, the founder of Forest River, in 2005, he was prepared to negotiate. But Liegl's surprising salary request left Buffett momentarily speechless.

Nearly two decades later, that deal has proven to be one of Berkshire Hathaway's BRK BRK most lucrative acquisitions.

What Happened: In his latest annual shareholder letter released on Saturday, Buffett reflected on Liegl's impact, calling him "one of a kind" and praising his leadership for contributing "many billions" to Berkshire shareholders.

The "Oracle of Omaha" recounted how he was introduced to Forest River through a letter from an intermediary on June 21, 2005. He liked the company's fundamentals and quickly set up a meeting with Liegl, his wife Sharon, and his daughter Lisa in Omaha.

See Also: Warren Buffett Once Said Hiring Someone To Change Them Is ‘Just As Crazy’ As Marrying Someone To Change Them: ‘The Reason That Berkshire Has Been Successful…’

During negotiations, Buffett asked Liegl how much he wanted to be paid. His response was shocking: "Well, I looked at Berkshire's proxy statement and I wouldn't want to make more than my boss, so pay me $100,000 per year."

Buffett was floored but agreed. Liegl added one more request — a 10% bonus on earnings above what the company was already delivering. Buffett accepted the terms, and over the next 19 years, Liegl "shot the lights out" with no competitor coming close to his performance.

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Why It’s Important: Forest River remains a multibillion-dollar enterprise under Berkshire Hathaway. Despite economic challenges, it has consistently contributed to Berkshire's consumer products group.

In 2024, Forest River's revenues grew 6.4%, with a 7.9% increase in unit sales, partially driven by recent acquisitions, reported Fortune.

Even in a tough 2023, the company's resilience was evident, and in 2022, Forest River's performance helped boost Berkshire's consumer products revenue by $481 million.

Berkshire Hathaway reported a sharp rise in fourth-quarter earnings, driven by strong insurance performance. Operating profit jumped 71% to $14.53 billion, with insurance underwriting soaring 302% to $3.41 billion and investment income rising 50% to $4.09 billion. Full-year operating earnings grew 27% to $47.44 billion.

In the letter, Buffett acknowledged that not every business acquisition works out, but leaders like Liegl, who built an empire through talent rather than elite education, prove that a single winning decision can "make a breathtaking difference over time."

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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