How Warren Buffett's Biggest Mistake Turned The Alfonds Into Maine's Richest People

This story appears in the May 10, 2016 issue of Forbes. Subscribe

Siblings Susan and Bill Alfond are the richest people in Maine. (Illustration by Chris Lyons)

REFLECTING ON A lifetime of acquisitions, Warren Buffett once wryly quoted an old country song: “I’ve never gone to bed with an ugly woman, but
I’ve sure woken up with a few.” In Buffett’s case, none was less attractive than Maine-based Dexter Shoe Co., which he bought from its founder, Harold Alfond, for $433 million in 1993. Bad move for Buffett: Foreign competitors soon decimated Dexter.

It was, nonetheless, a great move for Alfond and his heirs, who got paid in rapidly appreciating Berkshire Hathaway stock. Harold died in 2007, passing his fortune on to his children: Ted, Peter, Bill and Susan. The latter two still live quietly in Maine. The most vocal member of the family is Harold’s grandson Justin (Bill’s son). Justin, a Democrat, serves in the Maine State Senate and is often pitted against the abrasive Republican Governor Paul LePage, who has called Justin a “spoiled little brat,” adding, “He’s very fortunate that his granddad was born ahead of him.”

BY DAN ALEXANDER