Berkshire Hathaway's top and bottom portfolio picks throughout Warren Buffett's 60-year tenure as its leader
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Warren Buffett, the Legendary Investor, Declares Step Down from Berkshire Hathaway
OMAHA, Neb. (AP) - In a sudden twist of events, billionaire investor Warren Buffett announced his intention to step down from his role as CEO of Berkshire Hathaway at year's end. This surprising move comes despite Buffett's previous assertion that he had no plans to retire.
Buffett, a Wall Street icon and one of the world's richest individuals, took the reins of Berkshire Hathaway back in 1965 when it was still a struggling textiles manufacturer. Under his leadership, he transformed the company into a conglomerate by acquiring other undervalued businesses and stocks.
Known as the "Oracle of Omaha," Buffett's success has earned him such nickname owing to his Nebraska birthplace and the city where he built his empire. Over the years, he has made some remarkable investments, as well as a few missteps.
Buffet's Notable Investments
- Insurance Floats: Buffett's investment in National Indemnity and National Fire & Marine in 1967 set the stage for Berkshire's growth. Insurance floats—the premium money earning interest between the time policies are written and paid-out—provided capital for many of Berkshire's investments. Today, the float stands at a staggering $173 billion.
- Undervalued Stocks: Buffett's shrewd acquisitions of American Express, Coca-Cola, and Bank of America at opportune moments have collectively gained over $100 billion, not including the dividends he has received.
- Tech Giants: Despite his initial hesitation, Buffett's foray into the tech world with Apple in 2016 proved to be a lucrative move. The value of his investment grew to over $174 billion before he started selling off Berkshire's shares.
- BYD (Build Your Dreams): Upon the advice of his late partner Charlie Munger, Buffett invested $232 million in the Chinese electric vehicle maker, BYD, in 2008. The value of his stake soared to over $9 billion before he began offloading it. Berkshire's remaining stake is still worth around $1.8 billion.
- See's Candy: Buffett considered his 1972 purchase of See's a turning point in his career. His collaboration with Munger taught him the importance of buying great businesses at good prices, as long as they had enduring competitive advantages. Over the years, Berkshire has earned pretax earnings of $1.65 billion from the candy company.
- Berkshire Hathaway Energy: Utilities have been a stable source of profit for Berkshire since its acquisition of MidAmerican Energy for $2.1 billion (or $35.05 per share) in 2000. Renamed and expanded through acquisitions, including PacifiCorp and NV Energy, the utilities unit has contributed significantly to Berkshire's profits.
Skip AdUnfortunately, Buffett's investment journey has not been perfect. Some of his worst investments include Berkshire Hathaway itself, Dexter Shoe Co., and missed opportunities, such as failing to invest in Amazon, Google, or Microsoft early on.
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