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Warren Buffett's biggest mistake might be dumping Disney — twice — and missing out on $20 billion

Warren Buffett's biggest mistake might be dumping Disney — twice.The investing guru bought a 5% stake from Walt Disney in 1966, and received a 3.6% stake after Disney bought Capital Cities/ABC — one of Berkshire Hathaway's key holdings —  30 years later.However, Buffett swiftly sold his Disney shares on both occasions, potentially leaving $20 billion on the table.Watch Berkshire Hathaway trade live.Watch Disney trade live.Warren Buffett's biggest mistake might be dumping Disney — twice. The investing guru sold significant stakes in Disney on two occasions, potentially leaving $20 billion on the table.The so-called Oracle of Omaha met Walt Disney in 1966, when the animator's company was valued at less than $90 million — about 0.04% of its current market capitalization."At Disneyland, the $17 million Pirates of the Caribbean ride would soon open," Buffett wrote in his 1995 letter to shareholders. "Imagine my excitement — a company selling at only five times rides!"The future Berkshire Hathaway chairman and his partners wasted no time buying a 5% stake in Disney for $4 million. The shares more than doubled in value by 1995. "That decision may appear brilliant," Buffett wrote. "But your chairman was up to the task of nullifying it."Indeed, Buffett sold the shares a year after buying them, netting a comparatively meager 55% profit. A fact that must sicken the so-called Oracle of Omaha: a 5% stake in Disney would be worth an astounding $12.3 billion today.Buffett had more bad calls to come. He helped strike a deal for Disney to acquire Capital Cities/ABC, one of Berkshire Hathaway's biggest investments, in 1995.The conglomerate netted about $1.4 billion in after-tax cash and a 3.6% stake in Disney from the sale. That holding, which it sold within three years, would have soared more than five-fold in value to $8.9 billion today.If Buffett and Berkshire Hathaway had held on to their combined 8.6% stake in Disney, it would now be worth more than $21 billion. They would have also received north of $1.5 billion in dividends.In total, Buffett's dismal Disney trades mean he may have missed out on a $20 billion return.SEE ALSO: Warren Buffett made 12 predictions about bitcoin, table tennis, and his death — here's how they turned outJoin the conversation about this story » NOW WATCH: How Area 51 became the center of alien conspiracy theories

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Tesla pauses insurance sales for an 'algorithm update' just hours after launch (TSLA)

Tesla took its new insurance offering offline Wednesday just hours after launch.The company tweeted that it was performing an "algorithm update" and that the products would be back shortly.Some online commenters said they had been quoted prices higher than those of their current third-party plans.Visit Business Insider's homepage for more stories.Tesla paused sales of its insurance plans just hours after the product's launch on Wednesday, citing an "algorithm update.""We're making some updates to Tesla Insurance and will be back online shortly," the company's official Twitter account said shortly before 7 p.m. ET, less than four hours after a blog post announcing the offering in California was published."Algorithm update in progress," the company added. It's not clear when the plans may go on sale again. Algorithm update in progress — Tesla (@Tesla) August 28, 2019 The move came after some commenters online said they had been quoted rates that were higher than their current third-party insurance plans, despite Tesla's pitch of 20% lower rates. The plans were available only in California."Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost," the company said in the blog post announcing the product, which was originally scheduled for a May launch."This pricing reflects the benefits of Tesla's active safety and advanced driver assistance features that come standard on all new Tesla vehicles."Tesla CEO Elon Musk, who was in China for an artificial-intelligence conference, did not tweet about the insurance launch or its subsequent delay.Shares of Tesla were set to open higher by about 1.6% on Thursday morning.Wall Street analysts say the move is yet another of Musk's promises that could strain the company's balance sheet and high debt."With the company's debt load remaining an albatross around Fremont's neck, strong cash flow and profitability will be needed for the coming years to help fund Musk's myriad of initiatives (robotaxis, Giga 3, European build out, insurance initiative announced last night, etc.) and appease frustrated investors in the Tesla story," Daniel Ives, an analyst at Wedbush Securities, told clients in a note."While demand showed an impressive bounce back in the June quarter and the company is seeing good order activity for 3Q (Europe so far so good, US demand remains lumpy in our opinion), we continue to believe that hitting 360k to 400k unit guidance for FY19 will be a very difficult Herculean-like feat."SEE ALSO: Tesla solar panels also caught fire on an Amazon warehouse, the retail giant said in the wake of Walmart's lawsuitJoin the conversation about this story » NOW WATCH: The Navy has its own Area 51 and it's right in the middle of the Bahamas

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