Warren Buffett shows the financial and psychic benefits of working past 65.
When the Berkshire Hathaway CEO reached that age in August 1995, the value of his Berkshire stock was about $12 billion. He held about 475,000 of what are now Class A shares, trading for $25,000 each at the time. Since then, he has created almost 95% of his current wealth and the stock price is up nearly 30-fold.
Buffett turns 95 on Aug. 30. The current value of his Berkshire stake— some 198,117 Class A shares— is now around $140 billion with the stock changing hands at about $706,000. The Berkshire stock represents more than 99% of his net worth.
That increase in wealth, from $12 billion to $140 billion, means Buffett’s wealth has swelled more than tenfold since he turned 65. The figure is even greater including the CEO’s significant gifts to charity.
Since Buffett began his charitable giving in 2006, he has given away $60 billion of Berkshire stock. The money has gone to five foundations, mainly the Gates Foundation, as well as four Buffett family philanthropies. If Buffett hadn’t given away any stock, his wealth would be more than $300 billion, Barron’s estimates.
In addition to the money, the CEO also has gotten the enjoyment and satisfaction of leading Berkshire for another 30 years. Buffett loves his job, saying in the past that he “tap dances” to work and would pay to do it.
While Buffett didn’t start Berkshire, he acts like founders like Mark Zuckerberg and Elon Musk, who run their companies as CEOs and view them as their babies. Berkshire is generally not far from Buffett’s mind even when he isn’t on the job. He once remarked that he’s always “on the clock” for the company.
It’s hard to know what would have happened if Buffett had retired at 65, but Berkshire likely wouldn’t be as large and as profitable a company as it is now.
In 1995, Berkshire amounted to a relatively small group of operating companies attached to a large equity portfolio that included stocks such as Coca-Cola and American Express. Now, it is the world’s most valuable conglomerate with a market capitalization of $1 trillion and $45 billion of annual after-tax operating income. Since 1995, Buffett has added vital Berkshire businesses like Burlington Northern Santa Fe and Berkshire Hathaway Energy.
Few are as fortunate as Buffett to remain in good health until 95 and be able to work so long. There is no precedent for someone running such a large company at such an advanced age.
Buffett has made the most of his senior years in a way that suited him. He has enriched millions of shareholders in the process and added dramatically to his own wealth.
That should help the country since he has charged his children with giving away about 99% of his fortune over the decade or so following his death. It promises to be one of the largest charitable giving campaigns ever.
Buffett intends to step down as CEO at year-end while remaining chairman. Berkshire executive Greg Abel plans to take the top job at the start of 2026.
Write to Andrew Bary at andrew.bary@barrons.com
