Oct. 18 (Bloomberg) -- Warren Buffett, who amassed the world’s third-biggest personal fortune through decades of stock picks and takeovers, told CNBC his worst investment was the textile mill that gave its name to Berkshire Hathaway Inc.

The worst stock he “ever bought was, drum roll here, Berkshire Hathaway,” Buffett, Berkshire’s 80-year-old chairman and chief executive officer, said in an interview broadcast today on the business-news channel. Buffett had “committed a major amount of money to a terrible business.”

Buffett and his investment partners paid about $14 million in the 1960s for a controlling interest in Berkshire Hathaway, then a New Bedford, Massachusetts-based manufacturer of men’s suit linings, according to biographer Andrew Kilpatrick. Buffett spent less than rivals on improvements to equipment and used Berkshire’s earnings to help fund investments, including the 1967 acquisition of insurer National Indemnity Co.

--Editors: Larry Light, Dan Kraut

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net; Andrew Frye in New York at afrye@bloomberg.net.

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net