Pershing Square Activist Presentation Deck
The Great Salad Oil Scandal of 1963 (cont'd.)
Had AmEx done better due diligence, it would have never dealt with De Angelis
AmEx's share price fell over 40%, eliminating ~$110 million in AmEx's market
capitalization due to the perception that AmEx's franchise was at risk
▸ A 35-year-old hedge fund manager put 40% of his fund into AmEx...
"Every trust department in the United States panicked," explained this 35-year-old
hedge fund manager, "the stock just poured out"
► Although it wasn't obvious to many at the time, the dislocation in the stock price
due to the scandal provided a great buying opportunity. With the passage of
time, the strength of AmEx's business proved resilent
"As described in other sections of this report, the extremely complex warehousing
situation has not interfered with the continued growth and attainment of record highs in
our main lines of business"
- American Express, 1964 Annual Report
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