The Unprecedented Journey: How Long Has Warren Buffett Owned Berkshire Hathaway?
Hello there! Have you ever wondered about the incredible story of Warren Buffett and the company that became his investment vehicle, Berkshire Hathaway? It's a tale of patience, contrarian thinking, and a remarkable transformation. Let's embark on this journey together to understand the timeline and the key steps in this legendary ownership.
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| How Long Has Warren Buffett Own Berkshire Hathaway |
Step 1: The Initial Investment in a Failing Business
Did you know that Berkshire Hathaway was originally a struggling textile manufacturer? It's true! In 1962, Warren Buffett began buying shares in the troubled company. He saw it as a "cigar butt" investment—a stock that was so cheap it was like finding a discarded cigar with one final puff left. He thought he could buy the shares at a discount to the company's working capital and sell them back to the company for a profit when they liquidated their mills.
It was a textbook "value investing" move, but one that he would later call his "dumbest" stock purchase ever. He was a brilliant investor, but this was a business fighting against a declining industry.
Step 2: Taking Control and Shifting the Focus
In 1964, a disagreement over the price of a share repurchase led to a pivotal moment. The manager of Berkshire Hathaway, Seabury Stanton, offered Buffett a price lower than what they had agreed upon orally. Annoyed by this, Buffett decided to do something different. Instead of selling his shares, he started to aggressively buy more.
QuickTip: Pause when something feels important.
This was the turning point. On May 10, 1965, Warren Buffett took majority control of the textile manufacturer, Berkshire Hathaway Inc. From this point on, he had the power to make the decisions.
Step 3: The Transformation from Textiles to a Conglomerate
Once in control, Buffett began the slow and deliberate process of transforming the company. He realized that the textile business was a losing battle. Rather than letting the business sink, he made a crucial decision: to redirect the cash flow generated from the textile operations into other, more promising industries.
Sub-heading: The Birth of "Float"
A major step in this transformation came in 1967 when he acquired the National Indemnity Company, an insurance company. This was a brilliant move. Insurance companies collect premiums from customers (the "float") but don't have to pay them out immediately. This pool of money provided Berkshire Hathaway with a constant source of capital to invest in other businesses and stocks, without having to rely on outside funding. This "float" became a cornerstone of Berkshire Hathaway's strategy.
Tip: Each paragraph has one main idea — find it.
Sub-heading: Strategic Acquisitions
Over the following decades, Buffett used Berkshire Hathaway as a holding company to acquire a diverse portfolio of businesses. He favored businesses with strong brands, consistent profitability, and the ability to generate steady cash. Some of the most notable acquisitions include:
See's Candies (1972): This taught him the power of a strong brand and customer loyalty.
GEICO (1996): This acquisition solidified Berkshire's position as a leader in the insurance industry.
Burlington Northern Santa Fe (BNSF) Railway (2010): This was a bet on the future of American infrastructure.
Step 4: The Legacy of Long-Term Ownership
So, how long has Warren Buffett owned Berkshire Hathaway? He began investing in 1962 and took control in 1965. This means that as of mid-2025, he has had control of the company for 60 years.
This long-term perspective is a hallmark of his investment philosophy. He believes in buying quality businesses and holding them for the long term, often decades, and avoiding frequent trading. His success isn't built on short-term wins, but on compounding solid decisions over decades. The company's shareholder returns from 1965 to 2023 had a compound annual growth rate (CAGR) of 19.8%, compared to a 10.2% CAGR for the S&P 500.
Step 5: The Oracle of Omaha Today
Tip: Read once for gist, twice for details.
Today, Berkshire Hathaway is a global giant with interests spanning nearly every major industry. It holds significant stakes in blue-chip companies like Apple, Coca-Cola, and American Express. The company is often compared to an investment fund, but it is a diversified conglomerate that owns businesses outright.
Warren Buffett continues to serve as the chairman and CEO, leading one of the world's leading corporate conglomerates.
FAQs
Here are 10 related FAQ questions with quick answers:
How to describe Warren Buffett's initial interest in Berkshire Hathaway? Warren Buffett first started buying shares in Berkshire Hathaway in 1962 as a "cigar butt" investment, seeing value in the company's assets despite its failing textile business.
How to calculate how long Warren Buffett has owned Berkshire Hathaway? You can calculate the duration by counting the years from when he took majority control in 1965 to the current year.
How to find out when Warren Buffett became the chairman of Berkshire Hathaway? Warren Buffett became the chairman and majority shareholder in 1970.
QuickTip: Skim first, then reread for depth.
How to identify the key moment when Buffett took control? The key moment was in 1965, when he took majority control after a dispute over a share repurchase price.
How to explain Berkshire Hathaway's business before Buffett's ownership? Before Buffett's ownership, Berkshire Hathaway was a struggling textile manufacturing company.
How to describe the first major acquisition under Buffett? One of the first significant acquisitions was the National Indemnity Company in 1967, which provided the "float" for future investments.
How to understand Buffett's investment philosophy for Berkshire Hathaway? His philosophy is rooted in "value investing," which involves buying undervalued companies with strong fundamentals and a durable competitive advantage, and holding them for the long term.
How to explain the "float" in Berkshire Hathaway's business model? The "float" is the pool of money from insurance premiums that the company collects but doesn't have to pay out immediately, which Buffett then invests.
How to find information about Berkshire Hathaway's performance under Buffett? You can look at the company's shareholder returns, which have historically outperformed the S&P 500 since Buffett took control.
How to understand why Buffett calls his initial purchase of Berkshire Hathaway "dumbest"? He called it his "dumbest" stock purchase because he was buying into a dying industry (textiles) and had to fight the failing business for years before finally giving up on that part of the business.
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