Omaha, Nevada (AP) – Billionaire investor Warren Buffett announced on Saturday that he plans to step down as CEO of Berkshire Hathaway by the end of the year. This news caught many off guard since the 94-year-old investor had previously indicated he wasn’t ready to retire.
Buffett, one of the richest individuals worldwide and a highly regarded investor, took control of Berkshire Hathaway in 1965 when it was primarily a textile company. He transformed it into a diverse conglomerate by identifying undervalued businesses and stocks.
His achievements have made him a legendary figure on Wall Street, earning him the nickname “Omaha Oracle,” a nod to the Nebraska city where he has lived and worked for years.
Here’s a look at some of his most notable investments:
Buffett’s Best
– National Compensation and National Fire Force: Buffett acquired this insurance company in 1967, marking one of his earliest investments in that sector. Insurance floats—essentially the capital from premiums that can be invested before claims are paid—have significantly contributed to Berkshire’s growth over the years. Berkshire’s insurance division now includes GEICO and other major firms, with a float amounting to $173 billion at the beginning of the year.
– American Express and Coca-Cola: Buffett’s investments in these companies, along with others, have turned out to be incredibly profitable, collectively valued at over $100 billion today, not factoring in the dividends over the years.
– Apple: Initially hesitant about technology investments, Buffett began buying Apple shares in 2016, realizing its potential as a consumer product company. He invested over $31 billion, with the value of his stake reaching more than $174 billion before he started selling shares.
– BYD: Recommended by his investment partner Charlie Munger, Buffett invested $232 million in the Chinese electric vehicle manufacturer BYD back in 2008. The value of this investment soared over $9 billion before he began to sell off shares, leaving Berkshire with a stake valued at approximately $1.8 billion.
– See’s Candy: Buffett often cites his 1972 acquisition of See’s Candy as a pivotal moment in his career. He emphasized the importance of buying quality businesses at reasonable prices, a shift from his earlier strategy of investing primarily in undervalued companies. Berkshire paid $25 million for See’s and saw pre-tax revenues of $1.65 billion by 2011.
– Berkshire Hathaway Energy: This utility has consistently provided Berkshire with reliable profits. Buffett’s conglomerate purchased MidAmerican Energy for $2.1 billion in 2000, and while it has undergone several acquisitions, profits contributed more than $3.7 billion to Berkshire in 2024. However, Buffett has noted that its value may have declined due to obligations tied to wildfire incidents.
Buffett’s Worst
– Berkshire Hathaway: Buffett himself considers his investment in Berkshire Hathaway’s textile mills to be one of his poorest decisions. While the company initially generated funds that aided some of his early acquisitions, it eventually faltered, leading to its closure in 1985. Despite this, Berkshire’s stock value has skyrocketed since then.
– Dexter Shoe Co.: In 1993, Buffett regretted spending $433 million on Dexter, claiming he overvalued the company.
– Missed Opportunities: Buffett reflects on his failures to invest in giants like Amazon, Google, and Microsoft early on, which could have yielded substantial profits. He also mentioned a missed chance to purchase $100 million in Walmart stock that is now worth nearly $10 billion.
– Early Sales of Bank Stocks: Just prior to the COVID-19 pandemic, Buffett began divesting from several banking stocks, particularly due to ongoing scandals at Wells Fargo. He sold shares of JPMorgan at under $100, only to see both stocks double in value since then.
– Blue Chip Stamp: Buffett, along with Munger, controlled Blue Chip in the 1970s when it was generating significant sales through customer rewards programs. However, as trading stamps fell out of favor, sales dwindled. Despite this, profits from Blue Chip helped finance other acquisitions that have continued to benefit Berkshire.
