OMAHA, Neb. — Sixty-one years after Warren Buffett assumed control of Berkshire Hathaway, a small textile company on the brink of irrelevance, the investment world is still marveling at the transformation he wrought. On May 10, 1965, Buffett began acquiring shares in the struggling firm, eventually turning it into a conglomerate powerhouse with a market value exceeding $900 billion. Today, as the anniversary passes, investor Prakash Boloor has calculated that a modest $10,000 investment made on that date, when shares traded at roughly $15 each, would now be worth an estimated $485 million.
This staggering figure, highlighted in a recent analysis by Benzinga, illustrates the profound impact of compounding returns over decades of patient, value-driven investing. Boloor, a seasoned investor, emphasized the lesson in long-term commitment, noting how Buffett's strategy of holding quality businesses indefinitely has outpaced even the most aggressive market benchmarks. Berkshire Hathaway's Class A shares, which have never split, now command prices well over $600,000 apiece, a testament to the Oracle of Omaha's unyielding philosophy.
Buffett's journey with Berkshire began inauspiciously. In the early 1960s, the company was a fading New England textile manufacturer facing stiff competition from cheaper imports. Buffett, then a 34-year-old investor running his own partnership in Omaha, saw undervalued assets and started buying shares in 1962. By May 1965, his stake had grown significant enough to influence operations, marking the start of his stewardship. Over the next six decades, he pivoted the firm away from textiles toward insurance, railroads, energy, and a diverse portfolio of stocks, including major holdings in Apple, Coca-Cola, and American Express.
The anniversary comes at a pivotal moment for Berkshire. At the end of 2025, Buffett, now 95, stepped down as CEO after 60 years at the helm, handing the reins to long-time vice chairman Greg Abel. Abel, 63, officially took over in 2026, inheriting a company that Buffett has described as an "extraordinary business ecosystem built over decades, one that cannot easily be replicated." During Berkshire's annual shareholder meeting in Omaha last year, Buffett praised Abel's understated style, saying his successor's true value "lies not in flashy leadership traits but in his ability to preserve the company’s unique culture of trust, disciplined capital allocation, and long-term thinking."
Abel's ascension was no surprise to those familiar with Berkshire's succession planning. Named Buffett's heir apparent in 2021, Abel has been instrumental in overseeing non-insurance operations, including Berkshire Hathaway Energy and the company's vast array of subsidiaries. Buffett, in his folksy manner at the 2025 meeting, quipped that Abel knows the businesses "like the back of his hand" and would continue the firm's aversion to unnecessary debt and short-term Wall Street pressures. Shareholders, gathered in the packed CHI Health Center arena, applauded the smooth transition, though some expressed quiet concerns about maintaining the magic without Buffett's personal touch.
Yet, the numbers tell a more sobering story in the short term. Berkshire Hathaway shares have declined 7.1% over the past year, lagging far behind the S&P 500's robust 26.6% gain. Analysts attribute this underperformance to the company's massive size, which makes rapid growth challenging, as well as its heavy exposure to cyclical industries like railroads and utilities. Benzinga Edge rankings place Berkshire's Class A stock in the 17th percentile for momentum but a strong 83rd percentile for value, suggesting it's seen as a steady but not speedy bet.
Buffett's legacy extends beyond balance sheets. He built Berkshire into a model of decentralized management, where subsidiary CEOs operate with autonomy as long as they adhere to principles of integrity and rational decision-making. This approach, Buffett often said, fosters innovation without the bureaucracy that plagues larger corporations. In his final annual letter as CEO, released in February 2025, he reflected on the company's evolution, writing that "Berkshire has been a wonderful place to work for many, and a fine place for all who have been associated with it."
Critics, however, have long pointed to Berkshire's opacity. Unlike many public companies, it provides scant details on individual investments or future plans, relying instead on Buffett's narrative style to communicate with investors. Some on Wall Street argue this has contributed to recent stock weakness, as institutional investors favor transparency in an era of algorithmic trading and ESG scrutiny. Still, Buffett maintained that Berkshire's edge lies in its contrarian bets, like the timely purchases during the 2008 financial crisis or the pandemic downturn.
Looking back, the 1965 investment milestone underscores Buffett's early genius. At the time, he was winding down his Buffett Partnership Ltd., which had delivered annualized returns of nearly 30% since 1957. Pouring those proceeds into Berkshire allowed him to leverage the company's insurance float—premiums collected upfront but paid out later—as low-cost capital for investments. This "float," now exceeding $160 billion, has been the secret sauce behind many of Berkshire's deals, from the acquisition of GEICO in the 1990s to BNSF Railway in 2010.
Abel's first year as CEO has been marked by continuity. In his initial public remarks at the 2026 shareholder meeting, held virtually due to lingering post-pandemic protocols, Abel vowed to "honor what Warren built" while exploring opportunities in renewable energy and technology. He echoed Buffett's aversion to buybacks at inflated prices, noting that Berkshire repurchased $2.5 billion in shares during 2025 but paused amid high valuations. Investors like Boloor see this discipline as key to sustaining the long-term compounding that turned that $10,000 into $485 million.
The broader implications of Buffett's era ripple through American finance. His annual letters, akin to philosophical treatises, have educated generations on topics from corporate governance to economic inequality. Philanthropically, Buffett has pledged 99% of his wealth to causes via the Giving Pledge, co-founded with Bill Gates in 2010. As Abel steers the ship, questions linger about whether Berkshire can innovate without its founder's charisma—perhaps through bolder moves in AI or climate tech, areas Buffett approached cautiously.
For now, the anniversary serves as a reminder of enduring principles. As Boloor put it in his analysis, the $485 million figure "underscores the power of compounding returns and long-term investing." In an age of meme stocks and day trading, Berkshire stands as a beacon of steadiness. Officials at the company declined further comment on the milestone, but the market's verdict is clear: the Buffett blueprint remains influential, even in transition.
With shares trading around $620,000 as of late May 2026, Berkshire continues to draw retail and institutional investors alike. Events like the annual meeting, dubbed Woodstock for Capitalists, persist under Abel, ensuring the company's cultural heartbeat endures. As the firm navigates global uncertainties—from inflation to geopolitical tensions—its next chapter will test whether the ecosystem Buffett cultivated can thrive without its architect at the forefront.
In Omaha, where it all began, locals still spot Buffett at Dairy Queen or the local bridge club, a symbol of grounded success. His departure from the CEO role hasn't dimmed that aura, but it has shifted focus to Abel's ability to allocate the $277 billion cash pile wisely. Economists and investors will watch closely, knowing that the lessons from 1965 remain relevant: patience pays, and true value compounds over time.