Over six decades of steering the Berkshire Hathaway empire, 94-year-old billionaire Warren Buffett made several investments that earned the company hundreds of billions of dollars—most famously in Apple, BYD, and Coca-Cola.
On May 3rd, Buffett officially announced he would step down as CEO of Berkshire Hathaway by the end of this year, marking the end of his 60-year reign at the helm of the investment conglomerate.
Often hailed as one of the greatest investors in modern history, Buffett took control of Berkshire Hathaway in 1965, back when it was a struggling textile mill. Over time, he reshaped it into a multi-sector powerhouse through acquisitions and strategic investments. Today, he owns approximately $169 billion in assets—$160 billion of which is in Berkshire stock. The company’s market cap has surpassed $1.16 trillion.
Buffett's remarkable track record has earned him legendary status on Wall Street and the nickname "The Oracle of Omaha"—a tribute to his hometown, where he was born, raised, and spent decades working.
Here are some of Buffett’s most successful and regretful investments throughout his storied career:
Profitable Investments
1. National Indemnity and National Fire & Marine
Insurance has always been a key pillar for Berkshire. In 1967, Buffett acquired National Indemnity and National Fire & Marine for $8.6 million—among his earliest ventures into the insurance industry.
The float (premium money collected before claims are paid) became a vital funding source for Berkshire’s other investments and helped drive the company’s growth. By Q1 of this year, Berkshire’s total float reached $173 billion.
2. American Express, Coca-Cola, and Bank of America
Buffett bought large stakes in these companies during times of turmoil—market crashes or corporate scandals. These holdings have grown by over $100 billion since acquisition, excluding the substantial dividends Berkshire has collected.
3. Apple
Despite his longstanding reluctance to invest in tech, Buffett began buying Apple shares in 2016, saying he viewed it as a consumer brand with exceptional customer loyalty. At its peak, the investment was worth over $174 billion, before Berkshire gradually began reducing its stake.
4. BYD
Following advice from Charlie Munger, Buffett bet big on Chinese EV company BYD in 2008 with a $232 million investment. At one point, this stake grew to over $9 billion. Berkshire has since trimmed its position and now holds $1.8 billion in BYD stock.
5. See’s Candies
The 1972 See’s Candies acquisition was a turning point in Buffett’s investment philosophy. Munger convinced him to focus on quality businesses with competitive advantages, not just cheap ones. Berkshire bought the company for $25 million and, by 2011, had earned $1.65 billion in pre-tax profits from it.
6. Berkshire Hathaway Energy
The energy sector has been a stable cash generator. In 2000, Berkshire bought MidAmerican Energy for $2.1 billion. It was later renamed and expanded to include PacifiCorp and NV Energy. In 2024 alone, this division brought in over $3.7 billion in profit.
Costly Mistakes
1. Berkshire Hathaway (the textile company)
Buffett has called his original 1962 purchase of the Berkshire textile firm his “worst investment.” The business struggled and ultimately shut down in 1985. Ironically, the stock has since soared from around $7–8 to over $800,000, making it a “bad decision that turned out well.”
2. Dexter Shoe Co
In 1993, Buffett paid $433 million in Berkshire stock to acquire Dexter Shoe. He later admitted this was a huge blunder—he gave away 1.6% of Berkshire’s equity for a company that turned out to be worthless.
Buffett has also expressed regret over missed opportunities. He passed on early investments in Amazon, Google, and Microsoft—costing Berkshire billions. He also abandoned plans to buy 100 million shares of Walmart, now worth nearly $10 billion.
Before the pandemic, Buffett soured on bank stocks, dumping 500 million shares of Wells Fargo amid ongoing scandals—many sold at around $30 each. He also sold JP Morgan shares for under $100. Both have more than doubled since.
Đăng nhận xét