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Over 40,00,000% return! That's how much Berkshire Hathaway shares have risen under Warren Buffett's 60-year leadership

Over 40,00,000% return! That's how much Berkshire Hathaway shares have risen under Warren Buffett's 60-year leadership

Introduction
Few stories in financial history are as extraordinary as the rise of Berkshire Hathaway under Warren Buffett. What began as a struggling textile company has transformed into one of the world’s most valuable conglomerates, delivering returns that are almost unimaginable. Over Buffett’s 60-year leadership, Berkshire Hathaway shares have risen by more than 40,00,000%, creating unparalleled long-term wealth for investors and cementing Buffett’s legacy as one of the greatest investors of all time.

The Early Days of Berkshire Hathaway
Warren Buffett, popularly known as the “Oracle of Omaha,” first began buying shares of the then-troubled New England textile manufacturer in 1962 at just $7.60 per share. At that time, Berkshire Hathaway was far from the diversified powerhouse it is today. In 1965, Buffett assumed full control of the company, marking the real beginning of its transformation.

According to calculations based on Berkshire Hathaway’s long-term performance reported in annual filings, the implied share price in 1965 would have been approximately between $15 and $18 per share. From these humble beginnings, Buffett began reshaping the company’s strategy, gradually moving away from textiles and into insurance, investments, and operating businesses with durable competitive advantages.

A 60-Year Leadership Legacy Comes to an End
Legendary investor Warren Buffett, who turned 95 this year, will step down as the Chief Executive Officer of Berkshire Hathaway today, December 31. This marks the end of an extraordinary six-decade-long leadership era. Over these 60 years, Buffett’s disciplined approach, long-term thinking, and focus on value investing have guided Berkshire through multiple economic cycles, market crashes, and booms.

Today, Berkshire Hathaway Class A shares trade at around $755,400 per share. When compared with the estimated $15–$18 value at the time Buffett took control, this translates into a staggering return of approximately 47,21,150%. Very few investments in history can match such sustained wealth creation over such a long period.

Buffett’s Personal Wealth and Philanthropy
According to a report by AP, Warren Buffett’s personal fortune in Berkshire Hathaway stock is worth roughly $150 billion, even after he has given away more than $60 billion over the past 20 years. His commitment to philanthropy, particularly through the Giving Pledge, stands as a testament to his belief that wealth should be used to improve society.

Despite distributing such a significant portion of his wealth, Buffett remains one of the richest individuals in the world, largely due to the phenomenal growth of Berkshire Hathaway under his stewardship.

Berkshire Hathaway vs the S&P 500
Berkshire Hathaway’s 2024 annual report once again highlighted how the company has consistently outperformed the broader market over the long term. From 1965 to 2024, Berkshire delivered a compounded annual gain of 19.9%, nearly double the 10.4% annual return of the S&P 500 over the same period.

While there have been years when the broader market outperformed Berkshire, the long-term numbers clearly reflect the strength of Buffett’s strategy. In the current year, the S&P 500 has risen around 17%, slightly ahead of Berkshire Hathaway’s roughly 12% gain so far. However, this short-term comparison does little to overshadow Berkshire’s decades of market-beating performance.

Iconic Long-Term Bets That Defined an Era
Some of Buffett’s most famous long-term investments include companies like American Express, Coca-Cola, and Apple. These bets reflect his preference for strong brands, consistent cash flows, and capable management teams. Over time, these investments have played a crucial role in driving Berkshire’s growth and stability.

However, as noted in the AP report, Berkshire’s sheer size has also created challenges. With such a massive capital base, finding investments large enough to move the needle has become increasingly difficult, making it harder to maintain the same pace of growth seen in earlier decades.

All Eyes on Greg Abel
With Buffett stepping aside as CEO, attention now turns to his successor, Greg Abel. The investing world first learned in 2021 that Abel would be Buffett’s designated successor, when Buffett’s longtime partner, the late Charlie Munger, assured shareholders that Abel would uphold Berkshire Hathaway’s unique culture and long-term philosophy.

As the reins change hands, investors and analysts alike will be watching closely to see how Abel steers the conglomerate in a rapidly evolving global economy, while preserving the principles that have defined Berkshire for generations.

Tracking a Legendary Investing Journey
As Warren Buffett steps away from day-to-day leadership, there could be no better tribute than to track and reflect on Berkshire Hathaway’s extraordinary stock market journey under his tenure. From a $7.60 struggling textile stock to shares valued at over $755,400 today, the story is a powerful reminder of what patience, discipline, and long-term vision can achieve in investing.

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 individual circumstances may vary.

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