Since Warren Buffett’s acquisition of a controlling stake in Berkshire Hathaway in 1965, the company has delivered an average annual return of 19.7%, more than 800 basis points ahead of the S&P 500’s 10.5% annual gain over the same period. A $1,000 investment in Berkshire stock at the start of Buffett’s tenure would be worth $48.5 million today, compared with just $399,702 in the S&P 500. Even if Berkshire’s share price plunged by 99% at the close of trading today, investors who purchased in 1965 would still hold a portfolio worth $485,000—surpassing the S&P 500 outcome—underscoring the power of compounding returns and shareholder-friendly capital allocation decisions made under Buffett’s leadership.

Berkshire Hathaway operates a network of wholly owned subsidiaries spanning insurance (GEICO, General Re), logistics (BNSF Railway), energy (Berkshire Hathaway Energy) and manufacturing (Precision Castparts), using their steady cash flows to fund both outright acquisitions and public-market investments. Its $317 billion equity portfolio is anchored by five positions—Apple, American Express, Bank of America, Coca-Cola and Chevron—which together represent 63% of its market value. Between 2016 and 2023, Buffett allocated $38 billion to Apple, growing that stake to a peak value exceeding $170 billion before trimming approximately 73% of the position by year-end 2025 to manage concentration risk.

At the end of 2025, Buffett retired as CEO after 60 years, transitioning day-to-day leadership to Greg Abel, a vice chairman since 2018 with more than two decades at the company. Buffett remains chairman and will continue to influence strategic decisions. Berkshire ends 2025 with a record cash hoard of $381 billion—enough to acquire 477 S&P 500 companies outright—providing Abel and the board with unparalleled firepower to pursue new investments or acquisitions and to uphold the capital-allocation framework that has driven decades of market-beating performance.