OMA, Nevada (AP) – Billionaire investor Warren Buffett announced on Saturday that he intends to step down from his role as chief executive of Berkshire Hathaway by the end of the year. This news caught many off guard, especially since the 94-year-old had previously expressed no desire to retire.
Buffett, ranked among the wealthiest individuals globally, has led Berkshire Hathaway since 1965 when he entered the business as a textile manufacturer. Over the years, he transformed the company into a conglomerate, investing in various businesses and stocks, often uncovering undervalued opportunities.
His achievements have made him a legendary figure on Wall Street, earning him the nickname “Omaha Oracle,” referencing his longtime residence in Nebraska.
Here’s a look at some of his most notable investments:
Buffett’s Best
National Compensation and National Fire Force: Acquired in 1967, this was one of Buffett’s first forays into insurance. The concept of insurance floats—funds that insurers can invest during the period from when a policy is written until a claim is made—has fueled much of Berkshire’s growth over the years. Now, the insurance division includes GEICO and other major insurers, with a float totaling $173 billion at the end of the first quarter.
Investments in American Express, Coca-Cola Co., and Bank of America: Buffett took a chance on these companies during challenging times. The value of these stocks now exceeds $100 billion compared to what he initially paid, not including significant dividends he accrued over the years.
Apple: Initially cautious about technology companies, Buffett shifted his stance in 2016 and invested more than $31 billion in Apple. He noted that he views the company primarily as a consumer products firm with a loyal customer base. The worth of this investment skyrocketed to over $174 billion before he began selling shares.
BYD: With the guidance of his late business partner, Charlie Munger, Buffett invested $232 million in the Chinese electric car manufacturer BYD in 2008. The value of that investment soared to over $9 billion before he started to reduce it, and Berkshire’s remaining stake is still valued around $1.8 billion.
See’s Candies: Buffett has frequently cited his 1972 acquisition of See’s Candies as a defining moment in his career. He realized that investing in a solid business at a fair price could be immensely rewarding, leading to a total revenue of $1.65 billion before taxes by 2011.
Berkshire Hathaway Energy: This utility company has provided steady profits for Berkshire. Buffett acquired MidAmerican Energy for $2.1 billion in 2000, and despite some recent challenges related to wildfire liabilities, the utility contributed over $3.7 billion to Berkshire’s profits in 2024.
Buffett’s Worst
Berkshire Hathaway Textile Mills: Buffett himself has called this investment one of his biggest mistakes. He took over the textile company in 1965, but it became a financial drain before he finally shut it down in 1985. Interestingly, even his worst investment paid off since Berkshire’s stock, which he bought for $7 to $8 per share, is now worth over $809,000.
Dexter Shoe Co.: In 1993, Buffett bought Dexter for $433 million, which he later regretted, citing it as a significant blunder.
Missed Opportunities: Some of Buffett’s greatest regrets come from investments he opted not to make. Had he invested early in Amazon, Google, or Microsoft, Berkshire would have seen immense profits. He also recalled a missed chance to buy $100 million in Walmart stock, which would be worth nearly $10 billion today.
Banking Stocks: Just before the COVID-19 pandemic, Buffett sold off many of his bank stocks due to ongoing scandals, particularly with Wells Fargo. He even sold shares of JPMorgan at a disappointing price, only to see their value more than double since then.
Blue Chip Stamp Company: Buffett and Munger took over Blue Chip in 1970, but as consumer interest faded, so did sales. Despite this decline, they were able to leverage Blue Chip’s revenue to acquire other successful businesses.
