When Warren Buffett took the helm of Berkshire Hathaway in 1965, few could have predicted the magnitude of the transformation he would bring. A once-floundering textile company evolved under Buffett into a behemoth conglomerate valued in the hundreds of billions. The numbers speak volumes: an investment of just $1,000 made in Berkshire Hathaway in 1965 would today be worth over $55 million.
That remarkable performance amounts to a total return of 5,502,284% as of 2024, according to a detailed report by NBC Connecticut.
A Historic Run: 1965 to 2024
Buffett’s 60-year tenure delivered a compound annual growth rate (CAGR) of 19.9%, nearly doubling the S&P 500’s average annual return of 10.4% over the same period. To put that in perspective, the S&P 500 delivered a return of about 39,054%, while Berkshire outpaced it by an enormous margin.
Such figures aren’t just historical trivia; they are a lesson in long-term investing and the power of compounding returns.
The Power of Buy-and-Hold
What makes Berkshire Hathaway particularly unique is its commitment to retaining earnings. Unlike many companies that pay regular dividends, Berkshire reinvests profits to fuel long-term growth. Buffett’s philosophy is simple: if the company can reinvest capital at high rates of return, shareholders benefit more over time than if the money were distributed.
Thus, the $55 million hypothetical figure assumes no dividends were issued—and none were needed. The growth came entirely through appreciation in value.
You can read more about compound interest and long-term investment strategies from the U.S. Securities and Exchange Commission (SEC).
A Look at Berkshire’s Holdings
Berkshire Hathaway now owns or holds stakes in dozens of well-known companies and industries, including:
- Insurance: GEICO, General Re
- Railroads: BNSF Railway
- Utilities & Energy: Berkshire Hathaway Energy
- Consumer Brands: Dairy Queen, See’s Candies, Duracell
- Public Equity Holdings: Large stakes in Apple, Coca-Cola, Bank of America, and American Express
This diversification helped Berkshire weather market downturns and economic shocks better than most. Buffett’s preference for buying “wonderful businesses at fair prices” rather than “fair businesses at wonderful prices” paid off, especially during times of economic uncertainty.
For updated information on the U.S. economy and industries in which Berkshire invests, you can refer to BEA.gov and BLS.gov.
The Buffett Premium
Even today, the price of one Class A share (BRK.A) of Berkshire Hathaway is more than $768,000. The Class B shares (BRK.B), designed for more accessible ownership, are currently priced at around $512.33 per share (as of May 7, 2025).
This sky-high valuation is not just a result of asset value but a reflection of what is often referred to as the “Buffett premium”—the trust investors place in Buffett’s leadership and investment philosophy.
A Changing of the Guard
In May 2025, Buffett officially announced his retirement as CEO, marking the end of an era. While he will remain Chairman of the Board, Greg Abel, Berkshire’s Vice Chairman of Non-Insurance Operations, is set to take over the CEO role at year-end.
This transition had been anticipated for years and is expected to maintain stability within the company. Abel is known to have a management style and investment philosophy that closely mirrors Buffett’s.
What Investors Can Learn
Buffett’s legacy offers several timeless lessons:
- Invest with a long-term mindset
- Buy businesses you understand
- Avoid debt and unnecessary risk
- Reinvest earnings wisely
- Stay rational amid market euphoria and panic
As Buffett himself famously said, “Our favorite holding period is forever.”
Berkshire Hathaway under Warren Buffett was not just a story of wealth—it was a case study in how discipline, patience, and strategic thinking can outperform the market for decades.
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