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David Gottesman

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For other people named David Gottesman, seeDavid Gottesman (disambiguation).
David Gottesman
Born(1926-04-26)April 26, 1926
New York City,U.S.
DiedSeptember 28, 2022(2022-09-28)(aged 96)
Rye, New York,U.S.
Alma materTrinity College(BA)
Harvard University(MBA)
Occupations
  • Businessman
  • investor
Known forEarly investor inBerkshire Hathaway
Spouse
​
(m.1950)​
Children3
Parents
RelativesSamuel Gottesman(uncle)

David Sanford "Sandy" Gottesman(April 26, 1926 – September 28, 2022) was an American businessman, billionaire, and philanthropist.[1][2]He foundedFirst Manhattan Co.(FMC),[3]and was noted for his friendship withWarren Buffett.

Early life and education

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Gottesman was born to aJewishfamily in New York City on April 26, 1926.[4][5][6]His father, Benjamin, worked as a banker and investor; his mother,Esther (née Garfunkel),played a key role in procuring theDead Sea Scrollsfor Israel.[6][7][8][9]Through his mother, distant relations included Barrett Visanska, a Polish immigrant and a founder of the Tree of Life Congregation inColumbia, South Carolina,and for whom theVisanska Starks Houseis named.[10]He had two siblings, Milton Gottesman and Alice Gottesman Bayer.[7][11]He was also a nephew of American pulp-paper merchant, financier, and philanthropistSamuel Gottesman.[7][12]The family relocated toNew Rochelle, New York,during Gottesman's childhood. He joined theUS Armyafter high school and was first sent toPrinceton Universityto study engineering, before being deployed to theSouth Pacific theaterin 1945.[6]Upon his return from military service after an honorable discharge, he obtained abachelor's degreefromTrinity College.He then undertookpostgraduate studiesatHarvard Business School,graduating with aMaster of Business Administrationin 1950.[6][8]

Career

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After graduating, Gottesman worked atHallgarten & Companyinmergers and acquisitionsfor around a decade.[6]In 1963, he was introduced toWarren Buffettat a Wall Street club lunch by a mutual friend, who recognized their identical approach of purchasingvalue stocks.They soon became good friends, playing golf with each other and having conversations every Sunday night over the phone about which stocks to invest in.[6][13]Over the next two years, Gottesman often made brief trips to visit Buffett inOmaha, Nebraska;they would discuss ideas from the later part of the day into the early hours of the morning, after which Gottesman would typically return to New York on ared-eye flightto get home by the next morning.[6]

In 1964, Gottesman founded theinvestmentadvisory firmFirst Manhattan Co..[6][13]He was also an early investor inBerkshire Hathaway.The two firms co-invested in Diversified Retailing Co., which had been established by Gottesman, Buffett, andCharlie Mungerto purchase private retail companies, beginning withHochschild Kohn's(whose president was the uncle of Gottesman's wife). The trio soon concluded that this acquisition had been a "terrible mistake," and Gottesman oversaw its reselling, at only a minor loss.[6]In 1978, Diversified Retailing merged with Berkshire Hathaway.[13]By March 2021, Gottesman owned 17,202 class A shares and more than two million class B shares in Berkshire Hathaway.[14]This made up a sizable portion of his wealth. Gottesman later commented, "There probably has never been a better return on any stock held for 44 years in the history of Wall Street".[6]He estimated that by 2012, they had been worth 6,000 times their original value.[6]In 2003, he joined the Berkshire Hathawayboard of directors.[15]

Philanthropy

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In 2008, Gottesman donated $25 million to theAlbert Einstein College of Medicine.[16]This gift was used to found the Ruth L. and David S. Gottesman Institute for Stem Cell Biology and Regenerative Medicine, a stem cell research center.[17]He and his wife also funded theTrain Track Park's bicycle path around Jerusalem.[6][12]TheGottesman Hall of Planet Earthat theAmerican Museum of Natural Historyis named in their honor.[6]The new building of the National Library of Israel in Jerusalem is also named after them.

After Gottesman's death, his wife Ruth donated an additional $1 billion to the Albert Einstein College of Medicine in February 2024, dedicated to making tuition free for all future medical students. Her donation is one of the largest that has ever been made to an educational institution in the United States.[18]

Personal life

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Gottesman marriedRuth Levyin 1950.[6]They had met in 1948 before she began her studies atMount Holyoke College,and they remained married for 72 years until his death.[6][12]She has a bachelor's degree fromBarnard College,as well as a master's degree in Developmental Education and anEd.D.in Human Cognition and Learning in the area of Educational Psychology, both fromTeachers College, Columbia University.[19][20]

Together, they had three children – sons Robert W. "Bob" Gottesman (wife Trudy Elbaum), the executive chairman and former CEO ofFirst Manhattan,and William L. Gottesman (wife Debra Lopez), along with daughter Alice R. Gottesman. They also had seven grandchildren.[21]

They lived inRye, New York,[6]and he was an avid swimmer.[22]He served as a trustee of theMount Sinai Medical Centerand was Vice Chairman and trustee of theAmerican Museum of Natural History.[16]

Gottesman died at his home in Rye on September 28, 2022, at the age of 96.[6][23][24][12][13][25]

References

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  1. ^Hershey, Robert D. Jr.; Traub, Alex (September 29, 2022)."David Gottesman, Wall St. Power and Warren Buffett Partner, Dies at 96".The New York Times.RetrievedFebruary 26,2024.
  2. ^Faguy, Ana (February 26, 2024)."Widow Of Billionaire David Gottesman Donates $1 Billion For Free Medical School Tuition".Forbes.RetrievedFebruary 26,2024.
  3. ^Schroeder, Alice (2008), "29 (footnote six)",The Snowball: Warren Buffett and the Business of Life,Random House,ISBN9780553905496
  4. ^Who's who in Finance and Industry.Marquis Who's Who. August 1975.ISBN9780837903194.
  5. ^"BRK.A on CNBC".CNBC.October 18, 2013. Archived fromthe originalon October 20, 2013.RetrievedOctober 18,2013.Net worth: $3.0 billion
  6. ^abcdefghijklmnopqHershey, Robert D.; Traub, Alex (September 29, 2022)."David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies".The New York Times.RetrievedOctober 2,2022.
  7. ^abcNew York Times: "Paid Notice: Deaths GOTTESMAN, ESTHER"October 5, 1997
  8. ^abForbes Israel: Jewish Billionaires – Profile of David GottesmanApril 14, 2013 (in Hebrew)
  9. ^"The World's Billionaires (2010): #655 David Gottesman".Forbes.March 3, 2010. Archived fromthe originalon January 24, 2013.Net worth: $1.5 billion
  10. ^Gottesman, Milton M. (1999).Hoopskirts & Huppas: a Chronicle of the Early Years of the Garfunkel-Trager Family in America 1856-1920.New York: American Jewish Historical Society. p. 51.ISBN978-0-911934-51-9
  11. ^"Paid Notice: Deaths GOTTESMAN, MILTON M."The New York Times.April 28, 2005.ISSN0362-4331.RetrievedFebruary 28,2024.
  12. ^abcdCramer, Philissa (September 30, 2022)."David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies".Jewish Telegraphic Agency.RetrievedOctober 2,2022.
  13. ^abcdSandler, Rachel (September 29, 2022)."Billionaire Investor And Friend Of Warren Buffett David Gottesman Dies At 96".Forbes.RetrievedOctober 2,2022.
  14. ^"NOTICE OF ANNUAL MEETING OF SHAREHOLDERS May 1, 2021"(PDF).Berkshire Hathaway.March 15, 2021.RetrievedOctober 3,2022.
  15. ^Arnold, Laurence (September 29, 2022)."David Gottesman, a Top Buffett Investor and Friend, Dies at 96".Bloomberg News.RetrievedOctober 3,2022.
  16. ^abForbes: The World's Billionaires – David GottesmanJanuary 2018
  17. ^"About the Institute | Stem Cell Biology and Regenerative Medicine",Einstein.yu.eduRetrieved on December 16, 2014.
  18. ^Goldstein, Joseph (February 26, 2024)."$1 Billion Donation Will Provide Free Tuition at a Bronx Medical School".The New York Times.ISSN0362-4331.RetrievedFebruary 26,2024.
  19. ^"Ruth L. Gottesman, Ed.D."Faculty Profile.web.archive.org: Albert Einstein College of Medicine. Archived fromthe originalon November 29, 2014.RetrievedOctober 3,2022.
  20. ^Adeniji, Ade (April 19, 2016)."The Gottesmans: A Billionaire Family That Supports Jewish Organizations".Inside Philanthropy.RetrievedOctober 3,2022.
  21. ^"NYT: David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies".First Manhattan.RetrievedFebruary 28,2024.
  22. ^"Rye People: David Gottesman".MyRye.March 18, 2007.RetrievedOctober 3,2022.
  23. ^"DAVID GOTTESMAN Obituary (2022) - New York, NY - New York Times".Legacy.RetrievedFebruary 28,2024.
  24. ^"DAVID GOTTESMAN Obituary (2022) - New York, NY - New York Times".Legacy.
  25. ^Cramer, Philissa (October 1, 2022)."Buffett business partner, scion of Jewish philanthropic dynasty, dies at 96".The Times of Israel.RetrievedOctober 4,2022.
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