Legendary investor Warren Buffett, also known as the “Oracle of Omaha,” will step down as the Chief Executive Officer (CEO) of Berkshire Hathaway today, December 31, marking an end to his extraordinary 60 years of leadership.
As Buffett steps away from this, what could be a better way than to track his investing prowess by tracking Berkshire Hathaway’s stock market journey under his tenure.
Buffett, who turned 95 this year, has led the conglomerate for six decades. It was back in 1962 that he first started buying the struggling New England textile manufacturer at $7.60 apiece. Today, the massive conglomerate it is today with shares that go for more than $755,400 a pop.
It was later in 1965 that Buffett assumed full control of the company. According to Mint’s calculations, Berkshire Hathaway’s implied share price in 1965, when it was acquired by Warren Buffett, would be approximately between $15-$18 per share, based on the long-term performance captured by the company in its annual reports.
Considering the current value of Berkshire Class A shares of $7,55,400, the returns amount to a whopping 47,21,150%.
According to a report by AP, Buffett’s personal fortune of Berkshire stock is worth roughly $150 billion even after giving more than $60 billion away over the past 20 years.
Berkshire vs S&P 500
Berkshire Hathaway’s annual report for 2024 highlighted how Berkshire Hathaway stock has routinely outpaced the S&P 500, thanks to many bets made by the ace investor over the years.
As per its latest annual report, the compounded annual gain from 1965 to 2024 was 19.9% for Berkshire, nearly double that of 10.4% for the S&P 500. This year, though, S&P, with its 17% rise, is likely to trump Buffett’s Berkshire, which gained 12% so far this year.
Some of Buffett’s famous long-term bets include American Express, Coca-Cola and Apple. The AP report said that, given the huge size that Berkshire has grown to, it has faced hurdles in maintaining its pace of growth.
All eyes on Greg Abel
Now, with the change of reigns at the company, investors will be keenly watching Buffett’s successor, Greg Abel.
The world first learned in 2021 that Greg Abel would be Warren Buffett’s designated successor at Berkshire Hathaway, when Buffett’s longtime partner, the late Charlie Munger, assured shareholders at the annual meeting that Abel would uphold the company’s culture.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
