In 1961, A Chemical Engineer And His Wife Invested $25,000 Each With A Family Friend From Nebraska. The Friend’s Name Was Warren Buffett. When They Died In The 1990s, Their …
Two ordinary Omaha natives handed a family friend a modest sum in 1961, never touched it, and watched it quietly become something that stunned even the people who knew them.
As Greg Abel succeeds Warren Buffett, an early bet shows what patience built. In 1961, Donald and Mildred Othmer each gave $25,000 to a partnership run by Buffett, an old friend from Omaha.
A Brooklyn Professor and a Former Omaha Teacher
Donald joined the Polytechnic Institute of Brooklyn as a chemical engineering instructor in 1932. He headed the department from 1937 to 1961, became a distinguished professor in 1961 and became professor emeritus in 1976. By one account he never officially retired. He had worked at Eastman Kodak (NYSE:KODK), contributed to more than 40 patents and co-edited the Kirk-Othmer Encyclopedia of Chemical Technology.
Mildred was a former teacher and buyer for her mother’s dress store in Omaha. Both were Omaha natives with no children. The New York Times reported they “lived comfortably but not ostentatiously and rarely talked about their money.”, according to Reason
Donald died on Nov. 1, 1995, at 91. Mildred died in April 1998 at 90.
A Stake Left Alone for Decades
When the partnership dissolved in 1970, the couple received about 14,500 shares of Berkshire Hathaway (NYSE:BRK-A | BRK-A Price Prediction) at $42 each, worth about $609,000.
When Donald died in 1995, Berkshire traded at just under $30,000 a share. His shares sold for about $210 million. By July 1998, the stock reached $77,000. Mildred held 7,500 shares, worth $578 million.
Combined estates totaled more than $750 million, with sources reporting $780 million to $800 million.
Buffett told the New York Times in 1998 that they “just rode along.” The investment “never changed their lives.” A broad market investment over the same period would have produced $50 million to $100 million.
Nearly All of It Went to Charity
The gift figures also conflict. Glassman’s column puts the Brooklyn Polytechnic gift at $190 million, while Salon says $175 million. Glassman puts Long Island College Hospital’s gift at $160 million. For Planned Parenthood of New York, Glassman reports $75 million and Salon $65 million. Salon counts $340 million going to Brooklyn institutions in total.
Dividend Power lists about $140 million for the University of Nebraska-Lincoln, $125 million for the Chemical Heritage Foundation, $16 million for the Brooklyn Historical Society and $12 million for the Omaha Board of Education.
An Endowment Meant to Last Forever
The wills directed $135 million to Long Island College Hospital as an endowment to be “held in perpetuity.” Administrators drew down the principal repeatedly with court approval. The hospital eventually closed, and nearly all the gift is gone.
A Result Nobody Could Plan
Patience, one manager, and one company over three decades produced this.
Berkshire Hathaway Class A shares traded at $773,717.54 as of 10:48 AM ET on October 9, 2026, compared with about $77,000 in July 1998. Investors now watch whether Abel extends that run.
Contact [email protected] for any questions or corrections.