Seabury Stanton (October 9, 1892 – October 19, 1971) was an American businessman from

New Bedford, Massachusetts New Bedford is a city in Bristol County, Massachusetts, United States. It is located on the Acushnet River in what is known as the South Coast region. At the 2020 census, New Bedford had a population of 101,079, making it the state's ninth-l ...

who ran

Berkshire Hathaway Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. Originally a textile manufacturer, the company transitioned into a conglomerate starting in 1965 under the management of c ...

prior to its takeover by

Warren Buffett Warren Edward Buffett ( ; born August 30, 1930) is an American investor and philanthropist who currently serves as the chairman and CEO of the conglomerate holding company Berkshire Hathaway. As a result of his investment success, Buffett is ...

in 1964.

Biography

Early life

Seabury Stanton was born on October 9, 1892, in

. His father and grandfather had been

Yankee The term ''Yankee'' and its contracted form ''Yank'' have several interrelated meanings, all referring to people from the United States. Their various meanings depend on the context, and may refer to New Englanders, the Northeastern United Stat ...

whaling Whaling is the hunting of whales for their products such as meat and blubber, which can be turned into a type of oil that was important in the Industrial Revolution. Whaling was practiced as an organized industry as early as 875 AD. By the 16t ...

captains in New Bedford. He attended the local schools, the New Bedford Textile School, and

Harvard University Harvard University is a Private university, private Ivy League research university in Cambridge, Massachusetts, United States. Founded in 1636 and named for its first benefactor, the History of the Puritans in North America, Puritan clergyma ...

, where he graduated in the class of 1915.

Career

In 1916, Stanton began work in textile manufacturing as the treasurer for the Hathaway Manufacturing Company. The textile industry in New England declined after

World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...

and did not recover until after the

Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...

with the outbreak of

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

. In 1955, Hathaway became

after merging with Berkshire Fine Spinning Associates, becoming the largest surviving textile manufacturer in

New England New England is a region consisting of six states in the Northeastern United States: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. It is bordered by the state of New York (state), New York to the west and by the ...

with 15 mills. In the late 1950s, the industry was again in decline, facing low-cost competition from elsewhere in the United States and abroad. Stanton managed the company as president and his son Jack served as treasurer. Jack Stanton was expected to take over as president. Seabury's brother, Otis Stanton, managed sales at the company and often conflicted with his brother, eventually selling his shares to Warren Buffett after a meeting at the Wamsutta Club. In 1962,

began buying shares of Berkshire because he thought the company was selling at a discount to its actual value after noticing a pattern in the price direction of its stock whenever the company closed a mill. Eventually Buffett acknowledged that the textile business was waning and the company's financial situation was not going to improve. In 1964, Stanton made a verbal tender offer of $11 per share for the company to buy back Buffett's shares. Buffett agreed to the deal. In May 1964, Buffett received the tender offer in writing, but the tender offer was for only $11. Buffett later admitted that this lower (undercutting offer) made him angry. Instead of selling at the slightly lower price, Buffett bought more of the stock to take control of the company and fire Stanton. In 1965, Stanton and his son Jack resigned.

Personal life

In December 1916, Stanton married Jean Kellogg Austin. Stanton was Chairman of the Northern Textile Association from 1959 through 1962. He also served as a Director of the association from 1944 through 1950, again from 1951 through 1959, and from 1962 through 1965. In 1962, Stanton published a book on Berkshire, titled ''Berkshire Hathaway, Inc. A saga of courage''. Stanton died on October 19, 1971.

Bibliography

References

{{DEFAULTSORT:Stanton, Seabury 1892 births 1971 deaths American chief executives Berkshire Hathaway people Harvard University alumni People from New Bedford, Massachusetts