OMAHA, Neb. (AP) - Billionaire investor Warren Buffett said Saturday that he wanted to resign as CEO of Berkshire Hathaway by the end of this year. The revelation is surprising because the 94-year-old has previously stated that he does not plan to retire.
Buffett is one of the richest people and the most accomplished investor in the world, controlling Berkshire Hathaway when he was a textile manufacturer in 1965. He turned the company into a conglomerate by looking for other businesses and stocks purchased at prices below its value.
His success made him an icon of Wall Street. It also earned him the nickname "Omaha's Oracle," a reference to the Nebraska city where Buffett was born and chose to live and work.
This is his best and worst investment over the years:
Buffett's best
- State Indemnity and National Fire and Ocean: The company purchased in 1967 and was one of Buffett's earliest insurance investments. Insurance Float - Senior currency insurers can invest when purchasing policies and making claims - funding many of Berkshire's investments over the years and helping drive the company's growth. Berkshire's insurance division has grown to include GEICO, general reinsurance and several other insurance companies. At the end of the first quarter, the float totaled $173 billion.
- Buy stocks at American Express, Coca-Cola and Bank of America when the company is not satisfied due to scandal or poor market conditions. Overall, the stocks are worth $100 billion more than what Buffett paid, which doesn't count all the dividends he has collected over the years.
- Apple: Buffett Long said he didn't know enough about tech companies to value them and choose long-term winners, but he started buying Apple stock in 2016. He later explained that he bought more than $31 billion worth of value because he understood the iPhone Maker with extremely loyal customers. Before Buffett began selling Berkshire Hathaway shares, his investment value rose to more than $174 billion.
- Beard: At the advice of his late investment partner Charlie Munger, Buffett made a $232 million investment in Chinese electric vehicle maker in 2008, Bet Big, the genius of Byd founder Wang Chanfu. The value of the shares soared to more than $9 billion before Buffett began selling it. The remaining shares of Berkshire are still worth about $1.8 billion.
- Candy Seen: Buffett repeatedly pointed out that his 1972 purchase was a turning point in his career. Buffett said Munger convinced him that it makes sense to buy a great business at a good price as long as they have a lasting competitive advantage. Previously, Buffett invested primarily in any company of quality, as long as they sold at a value lower than he thought. Berkshire paid $25 million and earned $1.65 billion before tax from Candy Company to 2011. The amount continues to grow, but Buffett doesn't emphasize it often.
- Berkshire Hathaway Energy: Utilities provide Berkshire with a lot of profits. The conglomerate paid $2.1 billion, or $35.05 per share, for the city of Des Moines, in 2000. The utility unit was subsequently renamed and several acquisitions were made, including Pacificcorp and NV Energy. Utilities added $3.7 billion to Berkshire's profits in 2024, although Buffett said they are less valuable now than before because they face responsibilities related to wildfires.
Buffett's Worst
- Berkshire Hathaway: Buffett once said that his investment in Berkshire Hathaway textile mill was probably the worst investment he has ever made. The textile company he took over in 1965 took many years before Buffett finally closed in 1985, although Berkshire did provide cash for some of Buffett's early acquisitions. Of course, Berkshire's stock price Buffett started buying for $7, with a value of $8 per share in 1962 at $809,350 per share, so even Buffett's worst investment would be OK.
- Dexter Shoe Co.: Buffett said he made a terrible mistake in 1993 for $433 million, which made him even worse because he traded with Berkshire's shares. Buffett said he essentially gave Berkshire 1.6% of worthless business.
- Missed opportunity. Buffett said his worst mistake over the years was the investments and deals he did not make. If Buffett had invested early on in Amazon, Google or Microsoft, Berkshire could easily make billions of dollars. But it's not just the tech company he missed. Buffett told shareholders that he was caught “sucking his thumb” when he failed to follow a plan to buy 100 million Walmart stock, which is worth nearly $10 billion today.
- Too early to sell the bank. Soon after, Buffett seems to be on most of his bank stocks. Repeated scandals involving Wells Fargo gave him reason to start unloading 500 million shares, many of which are about $30 a share. But he also sold JP Morgan shares for less than $100. Since then, these two stocks have more than doubled.
- Blue Chip Stamps: Former Berkshire vice-chairman Buffett and Munger controlled Blue Chip in 1970, when sales of customer rewards programs were $126 million. But sales have steadily declined as trade stamps are favored by retailers and consumers. In 2006, they totaled only $25,920. But Buffett and Munger used Blue Chip-generated buoys to get See’s candy, Wesco’s Wesco Financial and Precision Castparts, both of which are stable contributors to Berkshire.