From Russia to Ukraine to the U.S.: the entrepreneur Warren Buffett invested in twice

The story of Mrs. B, whose real name was Rose Blumkin, is one of the most inspiring tales of American entrepreneurship — the so-called American Dream, which at its core is simply about survival. Her life was defined by tenacity, honesty, and a deep love for her adopted country, as well as an unshakable determination to never go hungry or live in poverty again.

Rose was born in 1893 in the Russian village of Schidrin, near Minsk, into a very poor family. She started working in a grocery store at the age of six and didn’t stop serving customers for the next 98 years.

She married Isadore Blumkin, whom she met in Ukraine after walking there alone at age 13 in search of a better future. By 16, she was already managing the store. That was how resolute and capable she was. They emigrated to the United States to escape antisemitism and mandatory military service when World War I broke out. He left first, since there was only enough money for one ticket, and three years later she followed. After a short stay in Iowa, the couple settled in Omaha, Nebraska.

The start of a $60 million empire

During the Great Depression, her husband came home defeated, convinced there was no future in a store that wasn’t selling. By then, the family had four children between the ages of 10 and 19, and Rose was 43. The next day, she took over. Her husband, she later explained, “was selling clothes for the same price he bought them. The poor man didn’t understand how to make money.” She did.

With a $500 loan from her brother, they opened Nebraska Furniture Mart in a 30-square-meter basement. Her business philosophy was simple and uncompromising: “Sell cheap and tell the truth.” She worked 14 hours a day, 7 days a week, buying directly from manufacturers and selling at just a 10% margin. That earned her a fiercely loyal customer base — and the resentment of competitors.

One of her most famous moments came when she was sued for unfair competition after selling carpets at far lower prices than department stores. The judge dismissed the case — and then spent $1,400 at her store the very next day. Rose proudly published the verdict in the local newspaper as proof of her honesty.

Expansion and legacy

Over time, Nebraska Furniture Mart became the largest furniture retailer in the country, eventually spanning three city blocks of showroom and warehouse space. By 1980, the Omaha store alone generated nearly $100 million in annual sales, with operating and staffing costs under $7 million. That meant her single store was outselling all similar stores across the entire state of Nebraska combined.

In 1983, she sold the business to Warren Buffett for $60 million, staying on as manager. Today, NFM is the largest furniture retailer in the United States, with sales exceeding $1 billion.

At 95, she officially retired — but just three months later, she opened a competing store right next door: Mrs. B’s Clearance and Factory Outlet. It quickly became Omaha’s third-largest carpet store. Buffett ended up buying that too. “It’s probably the first time a woman my age has started a business, but I feel capable of doing it,” she said.

Warren Buffett on Mrs. B

“Put her up against the top graduates of the top business schools or chief executives of the Fortune 500 and, assuming an even start with the same resources, she’d run rings around them.”

“If she ran a popcorn stand, I’d want to be in the business with her. First of all, A, she’s just plain smart, B, she’s a fierce competitor, C, she’s a tireless worker, and D, she has a realistic attitude. I’d rather wrestle grizzlies than compete with her.”

“Students from 40 universities visit me every year, and I have them start the day with a visit to NFM. If they absorb Mrs. B.’s lessons, they need none from me.”

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.