Warren Buffett Berkshire Hathaway, one of the most trusted and successful companies in the world, is going through a big change. After leading the company for nearly 60 years, legendary investor Warren Buffett, now 94, has announced he will retire by the end of this year.
Buffett took control of Berkshire Hathaway back in 1965, when it was a struggling textile business. Since then, he turned it into a massive $1.2 trillion company, investing in quality businesses at reasonable prices. Today, Berkshire owns everything from railroads and insurance to ice cream brands and battery companies.
Under Buffett’s leadership, the company’s stock has delivered an unbelievable return of over 5,500,000% – far higher than the S&P 500’s 39,000% in the same period. Even in the last 20 years, Berkshire’s shares have mostly outperformed the broader market.
In the first quarter of this year, the company reported operating earnings of $9.64 billion – a 14% drop from last year, mainly due to lower insurance profits, as per CNBC.
Berkshire Hathaway offers two types of shares: Class A (very expensive with more voting rights) and Class B (affordable for small investors). The earnings for Class B shares came in at $4.47, which was slightly below expectations.
As Warren Buffett prepares to step down, investors around the world are watching closely to see how Berkshire’s next chapter unfolds.
Comparison of Berkshire Hathaway’s returns
Let’s see how much your $1,000 investment in Berkshire Hathaway would be worth today—depending on the year you invested—based on the closing price of its Class B shares on May 8.
If you invested one year ago:
- Percentage change: 26.3%
- Total: $1,263
If you invested 10 years ago:
- Percentage change: 246.1%
- Total: $3,461
If you invested 20 years ago:
- Percentage change: 817.8%
- Total: $9,178
Berkshire Hathaway has performed well in the stock market, but experts usually advise spreading your investments across different options instead of putting all your money into one stock. They recommend investing in broad-based index funds, which tend to offer steadier returns and lower fees compared to picking individual stocks. This strategy is often safer and more reliable in the long run.
What companies does Warren Buffett own?
Warren Buffett’s Berkshire Hathaway owns a wide range of businesses, including well-known brands like GEICO, Dairy Queen, Duracell, and BNSF Railway. It also has large stakes in companies like Apple, Coca-Cola, and American Express.
What is the secret to Warren Buffett’s success?
The secret to Warren Buffett’s success lies in his long-term mindset, disciplined approach to investing, ability to focus on business fundamentals, and commitment to learning and improving. He is also known for his patience and willingness to wait for the right opportunities.
How much is Warren Buffett worth?
As of recent estimates, Warren Buffett’s net worth is over $100 billion, making him one of the richest people in the world. His wealth primarily comes from his holdings in Berkshire Hathaway.
Who is Warren Buffett?
Warren Buffett is one of the most successful investors of all time and the chairman and CEO of Berkshire Hathaway, a multinational conglomerate. Known for his value investing approach, he has become one of the wealthiest people in the world.