Notable successes
Had you invested $1,000 in Berkshire Hathaway in 1965, you'd have around $55 million today. Those mind-boggling returns aren't the result of any single investment. Much of Berkshire's success is the product of investing for the long term, allowing compounding to work its magic, and having the discipline not to react to short-term market noise.
However, some of Buffett's most noteworthy successes include:
- Buying insurance businesses, like what's now GEICO and General Re, then investing the float (premiums before claims have been paid out).
- Acquiring major stakes in companies like Coca-Cola and American Express when the shares were beaten down, believing they were undervalued by the market. Buffett has reaped huge returns from both capital gains and dividends through such investments.
- Attaining a substantial stake in Apple for Berkshire. This is perhaps Buffett's most profitable investment, though he's recently been trimming its position.
Reputation and influence
Berkshire Hathaway earned the No. 5 spot on Fortune and Korn Ferry's (KFY +1.84%) 2025 World's Most Admired Companies list.
Buffett has also long been a stickler for protecting the company's reputation. Berkshire Hathaway was a major shareholder in investment bank Salomon Brothers in the 1980s. When a bond trader was accused of illegally tampering with Treasury auctions, Buffett stepped in as the firm's interim chair.
He later said at a Senate hearing, "Lose money for the firm, and I will be understanding. Lose a shred of reputation, and I will be ruthless."
Buffett's focus on disciplined buy-and-hold investing has made Berkshire Hathaway one of the most influential investment companies in the world. Buffett's annual letter to Berkshire Hathaway shareholders has long been considered a must-read for investors. Berkshire's annual shareholder meeting is often called "Woodstock for Capitalists."
