Josh Funk
OMA, Nevada (AP) – Billionaire investor Warren Buffett said Saturday he would like to step down as Berkshire Hathaway’s chief executive at the end of the year. The revelation was a surprise as the 94-year-old had previously said he had no intention of retiring.
One of the richest people in the world and the most skilled investor, Buffett ruled Berkshire Hathaway in 1965 when he was a textile maker. He turned the company into a conglomerate by finding out other companies and other companies and stocks that buy stocks, and finding them for less than their value.
His success made him an icon of Wall Street. He also won the nickname “Omaha Oracle” which is a reference to the city of Nebraska, where Buffett chose to live and work.
Here are some of his best and worst investments over the years:
Buffett’s Best
– National Compensation and National Fire Force: The company, purchased in 1967, was one of Buffett’s first insurance investments. Insurance Floats – Premium Insurers can invest between when the policy was purchased and when the claim was made, but they provided much of the capital of Berkshire investment over the years and helped to drive the company’s growth. Berkshire’s insurance division now includes GEICO, general reinsurance and other insurers. The float totaled $173 billion at the end of the first quarter.
– Purchased stocks in American Express, Coca-Cola and Bank of America when businesses were no longer favored due to scandals and market conditions. Collectively, the stock is worth more than $100 billion than what Buffett paid, which doesn’t count all the dividends he’s collected over the years.
– Apple: Buffett Long said he doesn’t understand enough to value high-tech companies and choose long-term winners, but in 2016 he began buying Apple stocks. He explained that he bought over $31 billion worth of value because he understands iPhone Maker as a consumer product company with very loyal customers. The value of his investment increased to more than $174 billion before Buffett began selling Berkshire Hathaway shares.
-BYD: On the advice of his later investment partner, Charlie Munger, Buffett made a big bet on the genius of BYD founder Wang Chanfu in 2008, investing $232 million in a Chinese electric car maker. Before Buffett began selling it, the value of its stake skyrocketed to over $9 billion. The remaining Berkshire stock is still worth around $1.8 billion.
– See’s Candy: Buffett repeatedly pointed out his purchase in 1972 as a turning point in his career. Buffett said he persuaded him that it makes sense to buy a good business at a good price as long as Munger has a competitive advantage. Previously, Buffett was primarily investing in companies of all quality, as long as they sold less than they thought he was worthy. Berkshire paid SEE $25 million and recorded $1.65 billion pre-tax revenues from Candy Company until 2011. The amount continued to increase, but Buffett did not emphasize it on a daily basis.
– Berkshire Hathaway Energy: Utility provides Berkshire with a large and stable profit stream. The conglomerate paid $2.1 billion, or about $35.05 per share, to Des Moines-based MidAmerican Energy in 2000. The utility unit was subsequently renamed and made several acquisitions, including Pacificorp and NV Energy. Utilities added more than $3.7 billion to Berkshire’s profits in 2024, but Buffett said it is worth less than before due to its liability related to the wildfires.
Buffett’s worst
– Berkshire Hathaway: Buffett said that his investment in Berkshire Hathaway Textile Mills was probably his worst investment. The textile company he took over in 1965 raised funds over the years before Buffett finally closed it in 1985, but Berkshire provided cash for some of Buffett’s early acquisitions. Of course, Berkshire stock Buffett began buying $7 and $8 per share in 1962. Now it’s worth $809,350 per share, so even Buffett’s worst investment was fine.
– Dexter Shoe Co. :Buffett said he made a terrible mistake in 1993 by purchasing Dexter for $433 million. Buffett says he handed out 1.6% of Berkshire for an inherently unworthy business.
– I missed the opportunity. Buffett said some of his worst mistakes over the years were investments and deals he didn’t make. If Buffett had been comfortable investing in Amazon, Google and Microsoft early on, Berkshire could have easily made billions. But it wasn’t just the tech companies he missed. Buffett told shareholders he was caught “sucking his thumb” when he failed to follow plans to buy $100 million Walmart stock worth nearly $10 billion today.
– Bank sales are too early. Shortly before Covid Pandemic, Buffett looked sour in most of his banking stocks. The repeated scandals involving Wells Fargo gave him a reason to start dropping off his 500 million shares. However, he also sold JPMorgan’s shares at a price of less than $100. Since then, both stocks have more than doubled.
– Blue Chip Stamp: Former Vice Chairman of Berkshire, Buffett and Munger controlled the Blue Chip in 1970 when the customer rewards program generated $126 million in sales. However, sales fell steadily as trading stamps lost favour from retailers and consumers. In 2006, they totaled just $25,920. However, Buffett and Munger acquired See Candies, Wesco Financial and Precision Castparts using the floats generated by Blue Chip. All of these are steadily contributing to Berkshire.
Original issue: May 5, 2025, 2:51pm EDT
