Warren Buffett, one of the greatest investors of all time and CEO of Berkshire Hathaway, dropped a gigantic bombshell. He’ll retire from his position at the end of this year. Buffett, now 94 years old, has been leading Berkshire Hathaway since 1965. He did this by changing the business from a failing local textile company into an international 1.2 trillion dollar conglomerate. Under his leadership, the company has boomed with an unmatched stock increase of 5,502,284% through 2025. This phenomenal achievement completely smashes the 39,054% gain of the S&P 500 over that same period.
Berkshire Hathaway operates with two classes of stock: Class A and Class B. Class A shares are 400 times more expensive than Class B shares and have 400 times more voting power. This structure allows shareholders to benefit from the company’s long-term growth potential, which has been a hallmark of Buffett’s investment philosophy. Federal Express, which has beaten the S&P 500 on average the last 20 years running. No wonder investors seeking strong returns have made it their asset class of choice.
At the heart of Buffett’s investment philosophy is a focus on buying companies for their long-term intrinsic value. Berkshire Hathaway’s eclectic collection of subsidiaries spans industries—from railroads and insurance to ice cream and batteries. The company’s broad and diverse collection of holdings has proved increasingly important to maintaining the company’s performance even in fairly grim economic climates.
By comparison, in the first quarter of this year, Berkshire Hathaway reported $9.64 billion in operating earnings. This is a 14% drop from last year. Earnings per Class B share came in at $4.47, missing analyst estimates which called for $4.72. Even with these ups and downs, the track record of Berkshire Hathaway is enviable.
For investors who have bought and held on to shares of Berkshire Hathaway for decades, the outcome has been life-changing. An investment of $1,000 made 20 years ago would now be worth about $3,461. Moreover, an investment made ten years ago would be worth $9,178 today, for a fantastic return of 817.8%.
Meanwhile, Buffett himself is preparing to hand down the reins. Investors and analysts are sure to pay strict attention to the way that Berkshire Hathaway transforms itself with the new leadership. The legacy he leaves behind is one defined by extraordinary growth and a commitment to value investing principles that have shaped the landscape of modern finance.