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David Gottesman

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For other people named David Gottesman, see David 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 in Berkshire 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 founded First Manhattan Co. (FMC),[3] and was noted for his friendship with Warren Buffett.

Early life and education

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Gottesman was born to a Jewish family 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 the Dead Sea Scrolls for 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 in Columbia, South Carolina, and for whom the Visanska Starks House is 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 philanthropist Samuel Gottesman.[7][12] The family relocated to New Rochelle, New York, during Gottesman's childhood. He joined the US Army after high school and was first sent to Princeton University to study engineering, before being deployed to the South Pacific theater in 1945.[6] Upon his return from military service after an honorable discharge, he obtained a bachelor's degree from Trinity College. He then undertook postgraduate studies at Harvard Business School, graduating with a Master of Business Administration in 1950.[6][8]

Career

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After graduating, Gottesman worked at Hallgarten & Company in mergers and acquisitions for around a decade.[6] In 1963, he was introduced to Warren Buffett at a Wall Street club lunch by a mutual friend, who recognized their identical approach of purchasing value 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 in Omaha, 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 a red-eye flight to get home by the next morning.[6]

In 1964, Gottesman founded the investment advisory firm First Manhattan Co..[6][13] He was also an early investor in Berkshire Hathaway. The two firms co-invested in Diversified Retailing Co., which had been established by Gottesman, Buffett, and Charlie Munger to purchase private retail companies, beginning with Hochschild 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 Hathaway board of directors.[15]

Philanthropy

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In 2008, Gottesman donated $25 million to the Albert 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 the Train Track Park's bicycle path around Jerusalem.[6][12] The Gottesman Hall of Planet Earth at the American Museum of Natural History is 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 married Ruth Levy in 1950.[6] They had met in 1948 before she began her studies at Mount Holyoke College, and they remained married for 72 years until his death.[6][12] She has a bachelor's degree from Barnard College, as well as a master's degree in Developmental Education and an Ed.D. in Human Cognition and Learning in the area of Educational Psychology, both from Teachers College, Columbia University.[19][20]

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

They lived in Rye, New York,[6] and he was an avid swimmer.[22] He served as a trustee of the Mount Sinai Medical Center and was Vice Chairman and trustee of the American 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. Retrieved February 26, 2024.
  2. ^ Faguy, Ana (February 26, 2024). "Widow Of Billionaire David Gottesman Donates $1 Billion For Free Medical School Tuition". Forbes. Retrieved February 26, 2024.
  3. ^ Schroeder, Alice (2008), "29 (footnote six)", The Snowball: Warren Buffett and the Business of Life, Random House, ISBN 9780553905496
  4. ^ Who's who in Finance and Industry. Marquis Who's Who. August 1975. ISBN 9780837903194.
  5. ^ "BRK.A on CNBC". CNBC. October 18, 2013. Archived from the original on October 20, 2013. Retrieved October 18, 2013. Net worth: $3.0 billion
  6. ^ a b c d e f g h i j k l m n o p q Hershey, Robert D.; Traub, Alex (September 29, 2022). "David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies". The New York Times. Retrieved October 2, 2022.
  7. ^ a b c New York Times: "Paid Notice: Deaths GOTTESMAN, ESTHER" October 5, 1997
  8. ^ a b Forbes Israel: Jewish Billionaires – Profile of David Gottesman April 14, 2013 (in Hebrew)
  9. ^ "The World's Billionaires (2010): #655 David Gottesman". Forbes. March 3, 2010. Archived from the original on 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. ISBN 978-0-911934-51-9
  11. ^ "Paid Notice: Deaths GOTTESMAN, MILTON M." The New York Times. April 28, 2005. ISSN 0362-4331. Retrieved February 28, 2024.
  12. ^ a b c d Cramer, Philissa (September 30, 2022). "David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies". Jewish Telegraphic Agency. Retrieved October 2, 2022.
  13. ^ a b c d Sandler, Rachel (September 29, 2022). "Billionaire Investor And Friend Of Warren Buffett David Gottesman Dies At 96". Forbes. Retrieved October 2, 2022.
  14. ^ "NOTICE OF ANNUAL MEETING OF SHAREHOLDERS May 1, 2021" (PDF). Berkshire Hathaway. March 15, 2021. Retrieved October 3, 2022.
  15. ^ Arnold, Laurence (September 29, 2022). "David Gottesman, a Top Buffett Investor and Friend, Dies at 96". Bloomberg News. Retrieved October 3, 2022.
  16. ^ a b Forbes: The World's Billionaires – David Gottesman January 2018
  17. ^ "About the Institute | Stem Cell Biology and Regenerative Medicine", Einstein.yu.edu Retrieved 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. ISSN 0362-4331. Retrieved February 26, 2024.
  19. ^ "Ruth L. Gottesman, Ed.D." Faculty Profile. web.archive.org: Albert Einstein College of Medicine. Archived from the original on November 29, 2014. Retrieved October 3, 2022.
  20. ^ Adeniji, Ade (April 19, 2016). "The Gottesmans: A Billionaire Family That Supports Jewish Organizations". Inside Philanthropy. Retrieved October 3, 2022.
  21. ^ "NYT: David Gottesman, 96, Wall St. Power and Warren Buffett Partner, Dies". First Manhattan. Retrieved February 28, 2024.
  22. ^ "Rye People: David Gottesman". MyRye.com. March 18, 2007. Retrieved October 3, 2022.
  23. ^ "DAVID GOTTESMAN Obituary (2022) - New York, NY - New York Times". Legacy.com. Retrieved February 28, 2024.
  24. ^ "DAVID GOTTESMAN Obituary (2022) - New York, NY - New York Times". Legacy.com.
  25. ^ Cramer, Philissa (October 1, 2022). "Buffett business partner, scion of Jewish philanthropic dynasty, dies at 96". The Times of Israel. Retrieved October 4, 2022.
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