What Warren Buffett did in 1942: Doubled down on the future of the United States

During the summer, the Best Defense is in
re-runs. Here are some favorites that ran in late 2012 and in 2013. This item originally
ran on March 7, 2013.

Early 1942 was the low point of World War II, at least for the American newcomers. Britain was running out
of men and arms. The United States had not really gotten in the game. Germany
and Japan were triumphantly expanding, and it was thought possible they might
link up in Iran or that region after Egypt and India fell.

Warren Buffett mentions in his new annual report that it was then that he began buying American stocks. He was 11 years old. "I made my first stock purchase in the spring
of 1942 when the U.S. was suffering major losses throughout the Pacific war zone," he writes. "Each day's headlines told of more
setbacks. Even so, there was no talk about uncertainty; every American I knew believed we would prevail."

Management tip: Buffett also gives his
subordinates plenty of autonomy. In an aside, he notes that he voted for
President Obama, but that 10 of the 12 daily newspapers his company owns that
endorsed a candidate instead chose Governor Romney.