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Ike Friedman

Overview

Ike Friedman was the manager of Borsheim's and a legendary figure in the jewelry industry. He was the son of Rebecca and Louis Friedman and a relative of Mrs. B.

The Managerial Legend

Buffett’s admiration for Ike Friedman was the primary reason for Berkshire's purchase of Borsheim's.

  • The Handshake Deal: Buffett trusted Ike so implicitly that he didn't take inventory or audit the books before writing a large check.
  • The Creed: Ike operated under the mantra: "Sell cheap and tell the truth."
  • The Achievement: Ike transformed a small Omaha jewelry store into one of the highest-volume operations in the United States by maintaining a lower cost structure than any competitor.

Buffett's Tribute

In the 1988 Letter, Buffett wrote:

"I can assure you that those who put their trust in Ike Friedman and his family will never be disappointed... Our willingness to write a large check on the basis of Ike simply telling us what was so is the ultimate testimonial."

📚 Historical Mentions & Citations (1)

Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.

📜
1988 LetterExcerpt Available
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I can assure you that those who put their trust in Ike Friedman and his family will never be disappointed. The way in which we purchased our interest in their business is the ultimate testimonial. Borsheim’s had no audited financial statements; nevertheless, we didn’t take inventory, verify receivables or audit the operation in any way. Ike simply told us what was so—and on that basis we drew up a one-page contract and wrote a large check. After the meeting we will have several buses available to take you to visit Mrs. B at The Nebraska Furniture Mart and Ike Friedman at Borsheim’s. Be prepared for bargains.
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