In an unexpected announcement, billionaire investor Warren Buffett expressed his intention to resign from his role as CEO of Berkshire Hathaway by the year’s end, a revelation that caught many by surprise considering the 94-year-old had previously stated he had no plans for retirement. Buffett, who climbed the ladder to become one of the world’s wealthiest individuals and a legendary figure on Wall Street, took the reins of Berkshire Hathaway when it was merely a textiles firm in 1965. Through strategic acquisitions and investments in undervalued businesses and stocks, he transformed it into a formidable conglomerate. His remarkable achievements earned him the moniker “Oracle of Omaha,” a nod to his roots in the Nebraska city where he was born and continues to reside.
Throughout his illustrious career, Buffett made several notable investments that significantly contributed to Berkshire Hathaway’s growth. Among his best ventures were the acquisitions of National Indemnity and National Fire & Marine in 1967; these early investments in insurance provided the financial leverage, known as “insurance float,” that fueled numerous other profitable endeavors. Berkshire Hathaway’s insurance arm, which encompasses companies like Geico and General Reinsurance, commanded a substantial float of $173 billion by the end of the first quarter.
Strategically acquiring shares in major corporations when they were experiencing difficulties, such as American Express, Coca-Cola Co., and Bank of America, proved immensely rewarding. These investments appreciated to a combined worth well over $100 billion beyond their purchase price, excluding the myriad of dividends accrued over the years. When Buffett took a shining to the technology sector in 2016, his sizable investment in Apple Inc.—over $31 billion worth—exemplified his ability to identify long-term value, with the stake ballooning to above $174 billion over time.
Another standout investment was in the Chinese electric vehicle maker BYD, where Buffett followed the guidance of his close partner, the late Charlie Munger, and invested $232 million in 2008. This stake soared to a valuation of more than $9 billion at its peak. Buffett also pointed to his 1972 acquisition of See’s Candy as transformative, showcasing his shift toward purchasing superior businesses with competitive advantages even if they weren’t a bargain. This approach proved lucrative, with See’s Candy contributing $1.65 billion in pretax earnings by 2011.
Berkshire Hathaway Energy, acquired in 2000, has been another source of steady profit. Initially a $2.1 billion investment in MidAmerican Energy, the utility division grew substantially and augmented Berkshire’s profitability by $3.7 billion in 2024, despite current liabilities tied to wildfire risks.
However, not all of Buffett’s investments yielded success. The takeover of the Berkshire Hathaway textile mills in 1965 is often highlighted by Buffett as his most significant misstep; despite the eventual immense value of Berkshire shares, the textile business itself struggled and closed down in 1985. Another ill-advised venture was purchasing Dexter Shoe Co. in 1993 for $433 million, where mistakes were compounded by using valuable Berkshire stock as currency; ultimately, Buffett described Dexter as worthless.
Buffett also expressed regret over missed opportunities, noting how avoiding early investments in tech giants such as Amazon, Google, and Microsoft cost Berkshire potential billions. Furthermore, he openly admitted failing to act on purchasing a massive stake in Walmart that would have been enormously profitable.
Towards the onset of the COVID pandemic, Buffett’s disposition towards bank stocks soured, leading him to unload significant holdings prematurely, including those in Wells Fargo and JP Morgan, which later doubled in value. The case of Blue Chip Stamps, acquired in 1970, also stands as a cautionary tale of dwindling returns as trading stamps fell out of vogue; nevertheless, the float generated from Blue Chip facilitated profitable acquisitions like See’s Candy and Precision Castparts, which became enduring assets for Berkshire Hathaway.