Anne Kates Smith
Warren Buffett is known as the greatest long-term investor of all time, but that kind of gives him short shrift. When the Oracle of Omaha steps down as CEO of Berkshire Hathaway (BRK.B) at the end of 2025, it will mark the end of the career of the greatest capital allocator of all time.
What's the difference? Market participants who pore over which stocks Buffett is buying and selling every quarter forget that Berkshire is essentially a conglomerate with massive insurance operations at its core.
That's not to denigrate Buffett and his late partner Charlie Munger's stock-picking skills. They are legendary. But the company's equity holdings are just a part of Berkshire stock's incomparable run over the past 60 years.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Recall that Berkshire Hathaway was a struggling textile firm when Buffett took control in 1965. Over the ensuing years, Buffett converted it into a holding company, or a company that buys other companies.
Buffett's first target was an insurance company, and the insurance business continues to be at the core of its operations today.
The insurance business was especially attractive to Buffett because of float, or the money insurance companies hold between collecting premiums and paying out claims.
Thanks to the float from Berkshire's insurance companies, Buffett had a source of permanent capital to go shopping for other businesses and equities.
The end result is a sprawling set of wholly owned subsidiaries that collectively represent an endlessly optimistic bet on the dynamism of the U.S. economy.
Geico insurance is perhaps the crown jewel of Berkshire's businesses, but more than 60 other companies also contribute to its bottom line.
Plenty of folks might know that BNSF Railway, industrial titan Precision Castparts and Duracell are among Berkshire's businesses. But let's not forget about smaller operations such as Dairy Queen, Froot of the Loom, See's Candies and the wonderfully named Acme Brick Company.
Below, we feature some of Berkshire's high- and lowlights over the past six decades.
1965: Buffett takes control of struggling textile manufacturer Berkshire Hathaway – ironically, a purchase he would later deem "my first mistake."
1967: Berkshire Hathaway pays a dividend of 10 cents a share – the first and only dividend the company has ever paid.
1976: Buffett buys 1 million shares in insurance company Geico at about $2 per share. The stock had traded at $61 per share in 1972. Buffett first bought shares in 1951; Geico became a wholly owned Berkshire subsidiary in 1996.
1988: Berkshire starts buying Coca-Cola (KO), purchasing a 7% stake in the consumer staples stock for just over $1 billion. Today, Coke is Berkshire's third-largest holding, worth some $26.6 billion.
1993: Buffett buys Dexter Shoe for $433 million in Berkshire stock. Not only does the business eventually fail, but the shares paid would today be worth roughly $19 billion.
1996: Berkshire issues Class B shares, priced at $23.20, or one-thirtieth of the Class A shares. The B shares traded at $504 in May, up more than 2,000%.
2010: Berkshire makes the largest business acquisition in the company's history, buying Burlington Northern Santa Fe Railway for $44 billion.
2016: Buffett starts buying stock in Apple (AAPL), overcoming an aversion to tech stocks when he realizes – after noticing customers in line at a local Dairy Queen absorbed in their iPhones – that Apple is also a consumer products company.
2025: Buffett announces his retirement at the end of the year, "setting a gold standard for how corporate succession should be planned and implemented," says David Kass, a finance professor at the University of Maryland.
Note: The timeline of Berkshire's high- and lowlights first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
- I'm an Investing Expert: This Is How You Can Invest Like Warren Buffett
- If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have Today
- 7 of Warren Buffett's Biggest Misses
- 5 of Warren Buffett's Best Investments
-
Does My Car Insurance Cover Rental Cars?Is it safe to decline the extra coverage car rental companies offer you when booking? Here's what you need to know.
-
Outsmarting the AI Job Algorithm: Why Older Women Need a StrategyWhen you're job hunting, AI may undermine your best efforts. Here's how older women can throw a wrench in the algorithm.
-
I'm an Investment Adviser: Here's Why You Should Resist a Zero-Down MortgageWhile it's certainly enticing, a zero-down mortgage comes with significant risks, especially if home values decline or you want to refinance.
-
I'm Embarrassed to Ask: What Is a Life Insurance Trust?Life insurance trusts, particularly irrevocable life insurance trusts (ILITs), can minimize estate taxes and protect your heir's inheritance.
-
Are Your Employees Quietly Cracking? How to Repair the Cracks Before Everything BreaksSome employees who are unable to change jobs due to economic conditions are doing only the bare minimum, leading to decreased work quality and team morale.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
