Squishmallows, a popular TikTok sensation, caught the attention of Warren Buffett.

Warren Buffett’s Squishmallows Empire

Two years after Lady Gaga, Kim Kardashian, and others helped make Squishmallows a viral sensation on TikTok, the plush stuffed toys joined Warren Buffett’s business empire. Jazwares, the company behind Squishmallows, was founded by Judd and Laura Zebersky, who met at the University of Miami law school 33 years ago. Despite embarking on law careers, Judd soon realized that his destiny was to make toys. In 1997, he started Jazwares, where he is now CEO. Laura, a litigator, sold her practice in 2005 and joined him, becoming Jazwares’ president.

The Success of Squishmallows

Jazwares sales topped $1 billion in 2021, with about 40% coming from Squishmallows, as the number sold passed 100 million. The rest came from in-house and licensed brands, including Fortnite, Pokemon, and Star Wars. Berkshire Hathaway bought Jazwares’ parent, insurance holding company Alleghany Corp, for $11.5 billion last October. It has not since discussed Jazwares’ business performance. “Jazwares is a gem,” Buffett said in an emailed statement. “And, Judd and Laura are the ideal Berkshire managers.”

The Squishmallows Story

Launched in 2017, Squishmallows became part of Jazwares when it bought another toymaker, Kellytoy. The Zeberskys thought the squishy toys could be a hit but had not been marketed well to a mass audience. There are now more than 2,000 Squishmallows, each with its own name, birthdate, or “Squish date,” and biography. “This was a brand that needed a lot of love,” Judd Zebersky said. “It struck a nerve, and when you strike a nerve in the toy industry, great things can happen.”

Expanding into Ancillary Businesses

Jazwares is looking to expand into business “ancillary” to toys, such as costumes. Curiosity, Judd said, helps drive where Jazwares might go next in a fast-changing world. “Whenever you think that you’ve hit the top of the mountain and you’re not curious, that’s when your company will fall down,” he said.