Omaha, Nebraska: Billionaire investor Warren Buffett announced on Saturday that he wishes to step down as Berkshire Hathaway’s CEO by the end of the year. This news surprised many, especially since the 94-year-old had previously stated he did not plan to retire.
Buffett, one of the wealthiest individuals globally and a highly regarded investor, took the reins of Berkshire Hathaway back in 1965 when it was still a textile manufacturer. Over the years, he transformed it into a diversified conglomerate by acquiring undervalued companies and stocks.
This journey has solidified his status as a Wall Street legend, earning him the nickname “Oracle of Omaha,” a nod to his hometown in Nebraska.
Let’s take a look at some of his most notable investments, both successful and unsuccessful:
Buffett’s Best
- National Compensation and National Fire Force: Acquired in 1967, this was one of Buffett’s early insurance investments, which has enabled Berkshire’s growth through its insurer float, currently totaling $173 billion.
- American Express, Coca-Cola, and Bank of America: Buffett bought stock in these companies when they were facing challenges. Now, their combined worth has significantly increased, exceeding $100 billion, not counting the dividends he has accrued over the years.
- Apple: Initially hesitant about tech investments, Buffett made a significant shift in 2016, investing over $31 billion in Apple. He views the company as a consumer product business with a devoted customer base, resulting in an investment value that soared to over $174 billion before he started selling shares.
Read: Warren Buffett resigns, Greg Abel takes over as CEO of Berkshire Hathaway.
- BYD: Following the advice of his late investment partner, Charlie Munger, Buffett invested $232 million in this Chinese electric car manufacturer in 2008. Before parting with some of his stakes, their value ballooned to over $9 billion, while remaining shares are worth about $1.8 billion.
- See’s Candies: Buffett considers this 1972 purchase crucial to his career, emphasizing the value of acquiring a solid business at the right price. Berkshire paid $25 million, reaping $1.65 billion in pre-tax revenue by 2011.
- Berkshire Hathaway Energy: This utility has proven to be a reliable profit source, after being acquired for $2.1 billion in 2000. Although it contributed $3.7 billion to Berkshire’s profits in 2024, Buffett noted liabilities related to wildfires have diminished its value.
Buffett’s Worst
- Berkshire Hathaway Textile Mills: Buffett regards this investment as perhaps his worst, as he eventually shut it down in 1985. Despite its challenges, it did finance several of his early acquisitions.
- Dexter Shoe Co.: In 1993, he deemed his $433 million purchase a huge mistake, admitting it represented a significant portion of Berkshire for a company lacking potential.
Read: 10 powerful quotes by Warren Buffett from “Woodstock for Capitalists.”
- Missed Opportunities: Buffett recounted his regrets over not investing early in companies like Amazon and Google, which could have brought substantial returns. He even missed a chance to purchase $100 million worth of Walmart stocks, which would now be valued near $10 billion.
- Bank Sales: Just before the COVID-19 pandemic, Buffett began selling his banking stocks, driven by ongoing scandals involving Wells Fargo, as well as similar decisions regarding JPMorgan shares. Both stocks have since seen considerable gains.
- Blue Chip Stamps: Once a lucrative venture, the Blue Chip customer rewards program declined in popularity. However, its revenue helped finance valuable acquisitions like See’s Candies and Precision Castparts.
