The Oracle of Omaha is giving his last words of wisdom.
At 94 years old, investing icon Warren Buffett surprised investors and announced at the last moment of Berkshire Hathaway’s 60th annual meeting on Saturday that he’s stepping down as chief executive by year end. He will remain Chairman of the company, but vice chair Greg Abel will take over the CEO post, starting Jan. 1, 2026.
What is Buffett’s legacy?
Buffett took over Berkshire in 1965 with a value approach to investing. Value investing includes focusing on identifying and purchasing stocks that are trading below their perceived intrinsic or fair value. Later, he began various business ventures and investment partnerships.
Since he took over Berkshire, the company’s per-share value has compounded at a 19.9% rate, almost double the 10.4% average annual gain of the broad S&P 500, resulting in a 5,502,284% return for shareholders through 2024, according to the company’s annual report. That compares to the S&P 500’s 39,054% return during the same period with dividends.
If you invested $10,000 in Berkshire Hathaway in 1965, your investment would be worth around $1 billion.
Berkshire Hathaway is now the seventh largest company in the S&P 500, with a market cap of about $1.1 trillion.
Year to date, Berkshire Hathaway shares continue to outperform, too. They’re up more than 13%, outpacing the S&P 500, which is down 4%.
What investments are Buffett known for?
Some of his most lucrative holdings have included Coca-Cola and Apple. Berkshire purchased Coca-Cola shares nearly 40 years ago and continues to hold shares of the beverage giant.
“When we own outstanding businesses with outstanding managements, our favorite holding period is forever,” he wrote in his annual letter to shareholders that year.
He bought Apple in 2016 but significantly cut his stake in the iPhone maker in 2024. He was a reluctant buyer of tech stocks but reportedly was partly swayed by the hold he saw Apple had on its customers. It turned out to be one of his best investments.
“I’m somewhat embarrassed to say (Apple chief executive) Tim Cook has made Berkshire a lot more money than I’ve ever made,” Buffett said Saturday at Berkshire Hathaway’s annual meeting.
Buffett and taxes
The investing guru also famously discussed in an ABC interview in 2012 the fact that his secretary pays a tax rate of 35.8% of income, while he paid a rate of 17.4%, to highlight unfairness in the tax system.
Buffett has long advocated for tax reform and believes the wealthy should pay their fair share. He has said the tax system unfairly benefits wealthy people but doesn’t blame individuals for following the law, but rather the U.S. Congress.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: Warren Buffett could have made you a billionaire: Here’s how
