Warren Buffett: Difference between revisions

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| occupation  = Investor, businessman, philanthropist
| occupation  = Investor, businessman, philanthropist
| known_for    = Chairman of [[Berkshire Hathaway]], value investing, philanthropy
| known_for    = Chairman of [[Berkshire Hathaway]], value investing, philanthropy
| education    = M.S. Economics, [[Columbia Business School]]
| education    = [[Columbia Business School]] (M.S.)
| title        = Chairman, Berkshire Hathaway
| awards      = [[Presidential Medal of Freedom]] (2011)
| employer    = [[Berkshire Hathaway]]
| awards      = Presidential Medal of Freedom (2011)
| website      = {{URL|berkshirehathaway.com}}
| website      = {{URL|berkshirehathaway.com}}
}}
}}


'''Warren Edward Buffett''' (born August 30, 1930) is an American investor, businessman, and philanthropist who serves as the chairman of [[Berkshire Hathaway]], one of the largest and most diversified holding companies in the world. Often referred to in media as the "Oracle of Omaha" or the "Sage of Omaha," Buffett built his fortune over more than six decades through a disciplined approach to [[value investing]], a philosophy he adopted from his mentor [[Benjamin Graham]] at [[Columbia Business School]].<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref> Born and raised in Omaha, Nebraska, to a family with deep roots in business and politics — his father, [[Howard Buffett]], served as a [[United States Congress|U.S. congressman]] — Buffett displayed entrepreneurial instincts from an early age and made his first stock purchase as a child. He went on to form his own investment partnership in the 1950s, eventually acquiring a controlling stake in a struggling textile manufacturer named Berkshire Hathaway and transforming it into a sprawling conglomerate encompassing insurance, energy, railroads, consumer goods, and dozens of other industries. For more than half a century, Buffett guided Berkshire Hathaway's growth as its chairman and chief executive officer, stepping down from the CEO role in 2025 while remaining chairman. He is also one of history's most prominent philanthropists, having pledged to donate 99 percent of his wealth to charitable causes and co-founding [[The Giving Pledge]] in 2010 alongside [[Bill Gates]] and [[Melinda French Gates]].<ref>{{cite news |last= |first= |date=2025-05-03 |title=Buffett Announces CEO Succession at Berkshire Hathaway Annual Meeting |url=https://finance.yahoo.com/news/warren-buffett-says-wouldnt-owe-170106978.html |work=Yahoo Finance |access-date=2026-02-23}}</ref>
Warren Edward Buffett (born August 30, 1930) is an American investor, businessman, and philanthropist who serves as chairman of the conglomerate [[Berkshire Hathaway]]. Often referred to in media as the "Oracle of Omaha," Buffett built one of the largest personal fortunes in history through decades of disciplined [[value investing]], a philosophy he adopted under the tutelage of economist and investor [[Benjamin Graham]] at Columbia Business School. The son of a Nebraska congressman and businessman, Buffett displayed an early aptitude for business and numbers, launching his first investment partnerships in the 1950s before acquiring a controlling stake in a struggling textile manufacturer that he would transform into one of the world's largest and most diversified holding companies. Under his leadership, Berkshire Hathaway grew from a declining New England mill into a multinational conglomerate with interests spanning insurance, energy, railroads, retail, and manufacturing, while its stock price became one of the most expensive per share on any American exchange. At Berkshire Hathaway's annual investor conference on May 3, 2025, Buffett requested that the board appoint [[Greg Abel]] to succeed him as chief executive officer by year's end, while he would remain as chairman of the board.<ref>{{cite web |title=Berkshire Hathaway Annual Meeting 2025 |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-24}}</ref> Buffett has pledged to donate 99 percent of his wealth to philanthropic causes and co-founded [[The Giving Pledge]] in 2010 alongside [[Bill Gates]] and [[Melinda French Gates]], encouraging other billionaires to commit at least half of their fortunes to charity.


== Early Life ==
== Early Life ==


Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref> He was the second of three children and the only son of Howard Buffett, a businessman and stockbroker who later served four terms as a Republican member of the [[United States House of Representatives]], and Leila (née Stahl) Buffett. Growing up during the [[Great Depression]] and its aftermath, the young Buffett was exposed to the world of finance and commerce from an early age through his father's work in the securities industry.
Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, to Howard Homan Buffett and Leila (née Stahl) Buffett. His father, [[Howard Buffett]], was a businessman and stockbroker who later served four terms as a [[United States House of Representatives|United States congressman]] representing Nebraska's second congressional district. The family's roots in Omaha were deep, and Warren grew up in a household where business and public affairs were frequent topics of conversation.


Buffett demonstrated an aptitude for numbers and business as a child. He showed an early fascination with making and saving money, reportedly going door-to-door in his Omaha neighborhood selling chewing gum, Coca-Cola bottles, and weekly magazines. As a teenager, he took on paper routes and developed various small entrepreneurial ventures. He purchased his first stock at age eleven, buying three shares of [[Cities Service]] preferred stock at $38 per share — an experience that, despite modest returns, cemented his lifelong interest in the stock market.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref>
From an early age, Buffett exhibited a pronounced interest in business and money-making. As a boy, he sold chewing gum, Coca-Cola bottles, and weekly magazines door to door in his Omaha neighborhood. He purchased his first stock at the age of eleven and filed his first tax return at thirteen, claiming a $35 deduction for the use of his bicycle in his paper delivery route.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-24}}</ref> By the time he finished high school, Buffett had accumulated savings from various entrepreneurial endeavors, including owning pinball machines placed in local barbershops.


By the time he was a teenager, Buffett had already filed his first tax return, claiming a deduction for his bicycle as a business expense related to his paper route. He also partnered with a friend to purchase a used pinball machine, which they placed in a local barbershop — an enterprise that grew to include several machines across different locations in Omaha. By the age of sixteen, Buffett had accumulated savings of several thousand dollars, a substantial sum for a teenager in the mid-1940s. His early experiences in business instilled in him both the mechanics of earning money and the principle of reinvesting profits — concepts that would form the foundation of his investment career.
Buffett's childhood was also shaped by his father's political career and the family's periods of residence in Washington, D.C., where Howard Buffett served in Congress. Despite these relocations, Warren maintained a strong connection to Omaha, a city that would remain his home for the rest of his life. His early fascination with numbers, compound interest, and the mechanics of business laid the groundwork for an investment career that would span more than seven decades.


== Education ==
== Education ==


In 1947, at the age of seventeen, Buffett enrolled at the [[Wharton School]] of the [[University of Pennsylvania]], where he studied business. He spent two years at Wharton before transferring to the [[University of Nebraska–Lincoln]], where he completed his bachelor's degree in business administration at the age of twenty.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref>
Buffett entered the [[Wharton School of the University of Pennsylvania]] in 1947, where he studied business for two years. Finding the curriculum insufficiently practical for his interests, he transferred to the [[University of Nebraska–Lincoln]], from which he graduated at the age of twenty with a [[Bachelor of Science]] in business administration.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-24}}</ref>


After graduating from Nebraska, Buffett applied to [[Harvard Business School]] but was rejected. He then discovered that Benjamin Graham, the author of ''[[The Intelligent Investor]]'' and a pioneer of [[value investing]] and [[security analysis]], was teaching at [[Columbia Business School]]. Buffett enrolled at Columbia and studied under Graham, whose philosophy of buying securities trading below their intrinsic value profoundly shaped Buffett's approach to investing. He graduated from Columbia in 1951 with a Master of Science in economics. He also attended the [[New York Institute of Finance]] to deepen his background in economics and financial analysis before embarking on his professional career.
After completing his undergraduate degree, Buffett applied to [[Harvard Business School]] but was rejected. He subsequently enrolled at [[Columbia Business School]] after learning that Benjamin Graham and [[David Dodd]], both noted securities analysts and authors of the influential text ''Security Analysis'', were members of the faculty. At Columbia, Buffett studied under Graham, whose concept of value investing—purchasing securities at prices below their intrinsic value—became the intellectual foundation of Buffett's entire investment approach. Buffett earned a Master of Science in economics from Columbia in 1951. He also attended the [[New York Institute of Finance]] to further develop his economics background. Graham was the only professor to give Buffett an A+ grade at Columbia, a distinction that reflected the depth of the student's engagement with the material.


== Career ==
== Career ==


=== Early Career and Partnership with Benjamin Graham ===
=== Early Partnerships and Benjamin Graham ===


After completing his studies at Columbia, Buffett returned to Omaha and worked as a stockbroker. In 1954, he accepted a position at Graham-Newman Corp., the investment firm run by his mentor Benjamin Graham, in New York City. Working directly under Graham gave Buffett practical experience applying the principles of value investing — seeking stocks that were undervalued relative to their intrinsic worth based on fundamental analysis. When Graham retired and dissolved the partnership in 1956, Buffett returned to Omaha to strike out on his own.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref>
After graduating from Columbia, Buffett returned to Omaha and worked as a stockbroker at his father's firm, Buffett-Falk & Co. In 1954, Benjamin Graham offered Buffett a position at his investment firm, Graham-Newman Corp., in New York City. Buffett accepted and spent two years working directly under Graham, deepening his understanding of value investing through hands-on practice. When Graham retired and dissolved the partnership in 1956, Buffett returned to Omaha.


=== Buffett Partnership Ltd. ===
That same year, at the age of twenty-five, Buffett established Buffett Partnership Ltd., a private investment partnership. Starting with $105,100 in combined capital from seven limited partners—including family members and friends—Buffett began applying Graham's principles to identify undervalued stocks. Over the next thirteen years, the partnership achieved compound annual returns that far exceeded the performance of the [[Dow Jones Industrial Average]]. By 1965, the partnership's assets had grown substantially, and Buffett's reputation as a skilled stock picker was firmly established among a small circle of investors.


In 1956, at the age of twenty-five, Buffett established Buffett Partnership Ltd. with $105,100 in capital pooled from seven limited partners, including family members and friends. Over the following years, the partnership delivered consistently strong returns that substantially outperformed the broader market. Buffett's approach during this period involved identifying deeply undervalued stocks — sometimes referred to as "cigar butt" investments — and taking concentrated positions. The partnership's track record attracted additional investors and capital, and by the early 1960s, Buffett was managing several million dollars.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref>
=== Acquisition of Berkshire Hathaway ===


During the 1960s, through the partnership, Buffett began accumulating shares of Berkshire Hathaway, a New England-based textile manufacturing company that was trading at a price below the value of its net working capital. By 1965, Buffett had acquired a controlling interest in the company. He dissolved the Buffett Partnership in 1969, distributing assets to partners and retaining his own shares in Berkshire Hathaway as the primary vehicle for his future investment activities.
In 1962, Buffett Partnership Ltd. began purchasing shares of Berkshire Hathaway, then a struggling textile manufacturing company based in New Bedford, Massachusetts. By 1965, Buffett had accumulated enough shares to take control of the company. Although the textile operations continued to decline, Buffett used Berkshire Hathaway as a vehicle for deploying capital into more profitable enterprises, particularly insurance companies, which generated float—premiums collected before claims were paid—that could be invested elsewhere.
 
Buffett dissolved his investment partnerships in 1969 and 1970, distributing assets to partners. He emerged as the chairman and largest shareholder of Berkshire Hathaway in 1970, a position he would hold for more than five decades. The transformation of Berkshire from a failing textile operation into a diversified holding company is central to Buffett's career narrative. He later described the original textile investment as one of his worst decisions, noting that the capital trapped in the declining business could have been deployed more profitably elsewhere. Nevertheless, the Berkshire Hathaway corporate shell proved an effective platform for his investment activities.


=== Building Berkshire Hathaway ===
=== Building Berkshire Hathaway ===


Buffett emerged as chairman and majority shareholder of Berkshire Hathaway in 1970.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref> Although the textile operations that originally defined the company continued for some years, Buffett recognized early on that the textile business faced structural headwinds and began redirecting Berkshire's capital into more profitable enterprises — most notably the insurance industry. The acquisition of [[National Indemnity Company]] in 1967 provided Berkshire with a steady stream of insurance "float" — premiums collected before claims were paid — which Buffett deployed as a low-cost source of investment capital.
Under Buffett's stewardship, Berkshire Hathaway expanded through a combination of whole-company acquisitions and strategic stock investments. In the insurance sector, Berkshire acquired [[GEICO]], [[General Re]], and numerous smaller insurers, creating a massive pool of investable float. Beyond insurance, Buffett directed acquisitions in diverse industries including candy ([[See's Candies]]), newspapers (the ''Buffalo News'' and later the ''Omaha World-Herald''), furniture retail ([[Nebraska Furniture Mart]]), and jewelry ([[Borsheims]]).
 
In 1978, Charlie Munger, a fellow investor and long-time business associate, joined Buffett as vice-chairman of Berkshire Hathaway. Munger's influence on Buffett's thinking was substantial; he encouraged Buffett to move beyond Graham's strict focus on statistically cheap stocks toward purchasing high-quality businesses at reasonable prices, an evolution Buffett later acknowledged publicly. The Buffett-Munger partnership became one of the most celebrated collaborations in American business history, lasting until Munger's death in November 2023 at the age of ninety-nine.
 
Berkshire Hathaway's stock portfolio included long-term positions in major American corporations. Buffett's investment in Coca-Cola, initiated in 1988, became one of his most iconic holdings. He also maintained significant positions in companies such as [[American Express]], [[Wells Fargo]], and [[Apple Inc.]], the latter becoming Berkshire's single largest equity holding by market value in the 2020s.


In 1978, fellow investor and long-time associate [[Charlie Munger]] joined Berkshire Hathaway as vice chairman.<ref>{{cite web |title=Warren Buffett Timeline |url=http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm |publisher=About.com |access-date=2026-02-23}}</ref> Munger's influence on Buffett's thinking was substantial; he encouraged Buffett to move beyond Graham's strict emphasis on statistically cheap stocks and toward investing in high-quality businesses with durable competitive advantages — what Buffett would come to call "wonderful companies at fair prices." The Buffett-Munger partnership became one of the most celebrated in American business history, lasting until Munger's death in November 2023.
=== The Salomon Brothers Crisis ===


Over the decades, Berkshire Hathaway grew from a struggling textile company into one of the world's largest conglomerates. The company acquired a vast portfolio of wholly owned subsidiaries across industries including insurance ([[GEICO]], [[General Re]]), energy ([[Berkshire Hathaway Energy]]), railroads ([[BNSF Railway]]), consumer products, manufacturing, and retail. Simultaneously, Berkshire maintained an enormous public equity portfolio with substantial stakes in companies such as [[Apple Inc.]], [[Coca-Cola]], [[American Express]], and [[Bank of America]].
In 1991, Buffett was thrust into one of the most consequential episodes of his career when a scandal erupted at [[Salomon Brothers]], the Wall Street investment bank in which Berkshire Hathaway held a significant stake. Salomon traders had submitted false bids in U.S. Treasury bond auctions, and the firm faced potential criminal prosecution and the loss of its license to trade government securities. Buffett stepped in as interim chairman of Salomon Brothers to manage the crisis, testifying before Congress and working to restore the firm's credibility with regulators. His appearance before the House Subcommittee on Telecommunications and Finance included the oft-quoted admonition to Salomon employees: "Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless."<ref>{{cite web |title=John Gutfreund |url=http://mbaa.fuqua.duke.edu/ldi/press_johngutfreund.html |publisher=Duke University Fuqua School of Business |access-date=2026-02-24}}</ref> His intervention helped save the firm from collapse and reinforced his reputation for personal integrity.


=== Investment Philosophy ===
=== Investment Philosophy ===


Buffett's investment philosophy is rooted in the value investing framework taught to him by Benjamin Graham at Columbia, though it evolved significantly over time under the influence of Munger and through Buffett's own experience. Central tenets of his approach include: investing within one's "circle of competence," seeking businesses with strong and sustainable competitive advantages (which Buffett often describes as "economic moats"), favoring companies with capable and honest management, and insisting on purchasing at prices that offer a "margin of safety" relative to intrinsic value.<ref>{{cite web |title=Berkshire Hathaway 2002 Annual Letter to Shareholders |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-23}}</ref>
Buffett's investment approach, rooted in the value investing framework of Benjamin Graham, emphasizes purchasing shares of companies at prices below their calculated intrinsic value. Over time, influenced by Charlie Munger, Buffett refined this approach to focus on companies with durable competitive advantages—what he termed "economic moats"—strong management, and consistent earnings power, even when such businesses were not available at the deep discounts Graham typically sought.
 
Buffett has consistently advocated for long-term holding periods, famously stating that his "favorite holding period is forever." He has expressed skepticism toward complex financial instruments, describing derivatives in his 2002 letter to Berkshire shareholders as "financial weapons of mass destruction."<ref>{{cite web |title=Berkshire Hathaway 2002 Annual Report — Chairman's Letter |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-24}}</ref> This warning gained renewed attention during the 2007–2008 financial crisis when derivatives played a central role in the near-collapse of several major financial institutions.


Buffett has long emphasized the power of compound interest as a driver of long-term wealth creation.<ref>{{cite news |date=2026-02-21 |title=Discover Warren Buffett's 2 Wealth-Building Habits and How Compound Interest Amplified His Success |url=https://www.investopedia.com/discover-warren-buffett-s-2-wealth-building-habits-and-how-compound-interest-amplified-his-success-11910745 |work=Investopedia |access-date=2026-02-23}}</ref> His annual letters to Berkshire Hathaway shareholders, published since the 1970s, have become required reading in the investment community for their plain-spoken analysis of business fundamentals, markets, and capital allocation. In these letters, Buffett has repeatedly warned against speculation, excessive leverage, and the use of complex financial derivatives — which he famously described as "financial weapons of mass destruction" in his 2002 letter to shareholders.<ref>{{cite web |title=Berkshire Hathaway 2002 Annual Letter to Shareholders |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-23}}</ref>
Buffett has also been a vocal critic of gold as an investment, arguing that it is a non-productive asset. In his view, investments in productive businesses and farmland generate returns over time, while gold merely sits inertly. This perspective has remained consistent even during periods of surging gold prices.<ref>{{cite news |title=Buffett's unpopular view on the gold boom |url=https://www.thestreet.com/investing/buffetts-unpopular-view-on-the-gold-boom |work=TheStreet |date=2026-02-24 |access-date=2026-02-24}}</ref>


The "Buffett Indicator," a metric comparing total U.S. stock market capitalization to gross domestic product, has been widely tracked by investors as a valuation gauge. As of early 2026, the indicator suggested elevated equity valuations, prompting renewed discussion among market analysts.<ref>{{cite news |date=2026-02-21 |title=Could the US stock market collapse? Here's what the Warren Buffett indicator says |url=https://www.fool.co.uk/2026/02/21/could-the-us-stock-market-collapse-heres-what-the-warren-buffett-indicator-says/ |work=The Motley Fool UK |access-date=2026-02-23}}</ref>
A market indicator bearing his name—the "Buffett indicator"—compares the total market capitalization of publicly traded stocks to the country's gross domestic product. Analysts and financial commentators have used this metric as a gauge of whether the overall stock market is overvalued or undervalued.<ref>{{cite news |title=Could the US stock market collapse? Here's what the Warren Buffett indicator says |url=https://www.fool.co.uk/2026/02/21/could-the-us-stock-market-collapse-heres-what-the-warren-buffett-indicator-says/ |work=The Motley Fool UK |date=2026-02-21 |access-date=2026-02-24}}</ref>


=== Key Transactions and Crisis-Era Investments ===
=== The 2008 Financial Crisis ===


Throughout his career, Buffett demonstrated a willingness to deploy large amounts of capital during periods of financial distress when others were reluctant to invest. During the [[financial crisis of 2007–2008]], Buffett made a $5 billion investment in [[Goldman Sachs]] in September 2008, purchasing perpetual preferred shares carrying a 10 percent annual dividend along with warrants to buy common stock at a favorable price.<ref>{{cite web |title=Berkshire Hathaway Invests $5 Billion in Goldman Sachs |url=https://web.archive.org/web/20081220053032/http://www2.goldmansachs.com/our-firm/press/press-releases/current/berkshire-hathaway-invest.html |publisher=Goldman Sachs |date=2008-09-23 |access-date=2026-02-23}}</ref> Goldman Sachs later redeemed Buffett's preferred shares in March 2011 for approximately $5.65 billion, which included a 10 percent premium.<ref>{{cite news |date=2011-03-18 |title=Goldman Sachs to Pay $5.65 Billion to Redeem Buffett's Stake |url=http://www.businessweek.com/news/2011-03-18/goldman-sachs-to-pay-5-65-billion-to-redeem-buffett-s-stake.html |work=Bloomberg Businessweek |access-date=2026-02-23}}</ref>
During the global financial crisis of 2007–2008, Buffett emerged as a stabilizing force in American financial markets. In September 2008, as confidence in major financial institutions wavered, Berkshire Hathaway invested $5 billion in [[Goldman Sachs]] through the purchase of preferred stock carrying a 10 percent annual dividend, along with warrants to purchase additional common shares.<ref>{{cite web |title=Berkshire Hathaway to Invest $5 Billion in Goldman Sachs |url=https://web.archive.org/web/20081220053032/http://www2.goldmansachs.com/our-firm/press/press-releases/current/berkshire-hathaway-invest.html |publisher=Goldman Sachs |date=2008-09-23 |access-date=2026-02-24}}</ref> Goldman Sachs later redeemed Buffett's preferred stake in March 2011 at a premium, paying $5.65 billion.<ref>{{cite news |title=Goldman Sachs to Pay $5.65 Billion to Redeem Buffett's Stake |url=http://www.businessweek.com/news/2011-03-18/goldman-sachs-to-pay-5-65-billion-to-redeem-buffett-s-stake.html |work=Bloomberg Businessweek |date=2011-03-18 |access-date=2026-02-24}}</ref> Berkshire also made significant investments in [[General Electric]] and other companies during the downturn, capitalizing on distressed valuations while simultaneously providing a vote of confidence in the American financial system.


Also during the financial crisis, Buffett helped facilitate the [[Dow Chemical Company]]'s $19 billion acquisition of Rohm and Haas by providing financing.<ref>{{cite news |title=Buffett helps Dow pay $19bn for R&H |url=http://ftalphaville.ft.com/blog/2008/07/11/14430/buffett-helps-dow-pay-19bn-for-rh/ |work=FT Alphaville |access-date=2026-02-23}}</ref> In a September 2008 interview, Buffett characterized the economic situation as an "economic Pearl Harbor," underscoring the severity of the crisis while simultaneously expressing confidence in the long-term resilience of the American economy.<ref>{{cite news |title=Buffett: Economy in 'economic Pearl Harbor' |url=http://seattletimes.nwsource.com/html/businesstechnology/2008830635_apbuffetteconomy.html |work=The Seattle Times |access-date=2026-02-23}}</ref>
Buffett published an op-ed in ''The New York Times'' in October 2008 titled "Buy American. I Am," urging investors to purchase American equities despite the prevailing fear in markets. His willingness to deploy capital during periods of extreme pessimism exemplified the contrarian element of his investment philosophy.


Berkshire's portfolio management remained active into the 2020s. In the fourth quarter of the most recent reporting period, Berkshire Hathaway continued to adjust its equity holdings, with notable purchases in several dividend-paying stocks.<ref>{{cite news |date=2026-02-23 |title=3 Stocks Warren Buffett and Berkshire Were Gobbling Up in Q4 |url=https://www.barchart.com/story/news/360791/3-stocks-warren-buffett-and-berkshire-were-gobbling-up-in-q4 |work=Barchart |access-date=2026-02-23}}</ref> During Buffett's final quarter as CEO, the company continued selling more stocks than it purchased, reflecting a cautious stance amid elevated market valuations.<ref>{{cite news |date=2026-02-22 |title=14 Best Warren Buffett Dividend Stocks to Buy |url=https://www.insidermonkey.com/blog/14-best-warren-buffett-dividend-stocks-to-buy-1700425/ |work=Insider Monkey |access-date=2026-02-23}}</ref>
=== Major Acquisitions and Later Career ===


=== CEO Succession ===
Berkshire Hathaway continued to grow through major acquisitions in the 2000s and 2010s. In 2008, Berkshire participated in financing the Dow Chemical Company's $19 billion acquisition of Rohm and Haas.<ref>{{cite news |title=Buffett helps Dow pay $19bn for R&H |url=http://ftalphaville.ft.com/blog/2008/07/11/14430/buffett-helps-dow-pay-19bn-for-rh/ |work=FT Alphaville |date=2008-07-11 |access-date=2026-02-24}}</ref> In 2010, Berkshire completed its acquisition of [[Burlington Northern Santa Fe|Burlington Northern Santa Fe Corporation (BNSF)]], one of North America's largest railroad companies, in a deal valued at approximately $44 billion. Buffett described railroads as essential to the American economy and the BNSF purchase as an "all-in wager on the economic future of the United States."


At Berkshire Hathaway's annual shareholder meeting on May 3, 2025, Buffett announced that he had requested the board of directors to appoint [[Greg Abel]], who had been serving as vice chairman of Berkshire's non-insurance operations, to succeed him as chief executive officer by the end of 2025. Buffett stated he would remain as chairman of the board. The transition marked the end of more than five decades of Buffett's leadership as CEO.<ref>{{cite news |date=2026-02-23 |title=Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching. |url=https://www.barrons.com/articles/berkshire-ceo-abel-warren-buffett-055d5469 |work=Barron's |access-date=2026-02-23}}</ref> As of early 2026, Abel was preparing to publish his first annual shareholder letter, an event closely watched by Wall Street and the broader investment community given the decades-long tradition of Buffett's own shareholder communications.<ref>{{cite news |date=2026-02-23 |title=Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching. |url=https://www.barrons.com/articles/berkshire-ceo-abel-warren-buffett-055d5469 |work=Barron's |access-date=2026-02-23}}</ref>
Berkshire's portfolio continued to evolve in subsequent years. The company reduced holdings in some consumer staples companies, including selling portions of its positions in Johnson & Johnson and Procter & Gamble.<ref>{{cite news |title=Berkshire sells Johnson & Johnson, Procter & Gamble |url=http://www.financialexpress.com/news/berkshire-sells-johnson-&-johnson-procter-&-gamble/425035/ |work=Financial Express |date=2009-02-17 |access-date=2026-02-24}}</ref> In the fourth quarter of 2025, Berkshire Hathaway's stock purchases continued to attract attention from value-focused investors tracking the firm's regulatory filings.<ref>{{cite news |title=3 Stocks Warren Buffett and Berkshire Were Gobbling Up in Q4 |url=https://www.barchart.com/story/news/360791/3-stocks-warren-buffett-and-berkshire-were-gobbling-up-in-q4 |work=Barchart.com |date=2026-02-23 |access-date=2026-02-24}}</ref>


=== Tax Contributions and Public Statements ===
=== CEO Succession ===


Buffett has been outspoken about corporate and individual tax responsibilities. In public statements, he noted that if approximately 800 companies paid the [[Internal Revenue Service]] at rates comparable to Berkshire Hathaway, no American would owe "a dime" in federal taxes, including [[Social Security]] taxes.<ref>{{cite news |date=2026-02-21 |title=Warren Buffett Says You Wouldn't Owe A 'Dime' In Federal Taxes If 800 Companies Paid The IRS Like Berkshire |url=https://finance.yahoo.com/news/warren-buffett-says-wouldnt-owe-170106978.html |work=Yahoo Finance |access-date=2026-02-23}}</ref> This stance attracted attention in light of broader debates over tax policy affecting corporations and high-net-worth individuals. Buffett has previously advocated for higher taxes on the wealthy, famously noting that his effective tax rate was lower than that of his secretary — a position that contributed to discussions around what became informally known as the "Buffett Rule."
At Berkshire Hathaway's annual shareholder meeting on May 3, 2025, Buffett announced that he would step down as chief executive officer by year's end, recommending that the board appoint Greg Abel, who had been serving as vice-chairman of non-insurance operations, as his successor. Buffett stated that he would remain as chairman of the board. The announcement marked the culmination of years of succession planning at Berkshire, a topic that had been the subject of extensive speculation among investors and analysts given Buffett's advanced age and his central role in the company's operations and culture.


== Personal Life ==
== Personal Life ==


Warren Buffett has lived in Omaha, Nebraska, for nearly his entire life. He is known for a lifestyle that emphasizes frugality relative to his wealth. He has resided in the same house in the Dundee neighborhood of Omaha that he purchased in 1958, and he is known for his preference for simple meals and everyday consumer products.
Warren Buffett has resided in Omaha, Nebraska, for the majority of his adult life. He purchased his home in the Dundee neighborhood of Omaha in 1958, and as of the mid-2020s continues to live there—a fact frequently cited as emblematic of his well-documented frugality. Despite accumulating one of the largest personal fortunes in history, Buffett has maintained relatively modest personal spending habits compared to peers of similar wealth.
 
Buffett married Susan Thompson in 1952. The couple had three children: Susie, Howard, and Peter. Susan Buffett moved to San Francisco in 1977 to pursue a singing career, though the couple remained married and maintained a close relationship. Before her departure, Susan introduced Warren to Astrid Menks, who became his companion and later his second wife. Susan Buffett died in 2004, and Warren married Astrid Menks in 2006.


Buffett was married to Susan Thompson Buffett from 1952 until her death in 2004. The couple had three children. Though Warren and Susan Buffett lived separately beginning in 1977 — with Susan relocating to San Francisco — they remained married and close until her death. With Susan's encouragement, Buffett began a relationship with Astrid Menks, who had been a companion since the late 1970s. Buffett and Menks married in 2006.
Buffett has spoken publicly about the relationship between wealth and happiness, stating: "If you aren't happy having $50,000 or $100,000, you are not going to be happy if you have $50 million or $100 million."<ref>{{cite news |title=Quote of the day by Warren Buffett |url=https://m.economictimes.com/magazines/panache/quote-of-the-day-by-warren-buffett-if-you-arent-happy-having-50000-10000-you-are-not-going-to-be-happy-if-you-have-50-million-or-100-million/articleshow/128677545.cms |work=The Economic Times |date=2026-02-24 |access-date=2026-02-24}}</ref>


Buffett's frugal habits have been a consistent theme in media coverage throughout his career. Despite managing one of the largest pools of capital in American history, he has publicly adhered to modest personal spending and has described his approach to life as shaped by the values of his upbringing in Omaha.
Buffett is a member of the [[Democratic Party (United States)|Democratic Party]].


== Philanthropy ==
== Philanthropy ==


Buffett has pledged to give away 99 percent of his wealth to philanthropic causes, with the bulk of his charitable giving directed through the [[Bill & Melinda Gates Foundation]]. Beginning in 2006, Buffett initiated annual donations of Berkshire Hathaway shares to the Gates Foundation and to foundations run by his three children, in what became one of the largest philanthropic commitments in history.
Buffett has committed to donating the vast majority of his wealth to charitable causes. In 2006, he announced that he would gradually give approximately 85 percent of his Berkshire Hathaway shares to five foundations, with the largest portion directed to the [[Bill & Melinda Gates Foundation]]. Over subsequent years, he increased his pledge to 99 percent of his fortune.


In 2010, Buffett, along with Bill Gates and Melinda French Gates, launched [[The Giving Pledge]], an initiative encouraging the world's wealthiest individuals and families to commit the majority of their wealth to philanthropy either during their lifetimes or in their wills. As of the mid-2020s, more than 200 individuals and couples from over two dozen countries had signed the pledge.
In 2010, Buffett, along with Bill Gates and Melinda French Gates, launched [[The Giving Pledge]], a campaign to encourage the wealthiest individuals in the world to commit at least half of their wealth to philanthropy. By the mid-2020s, more than 200 individuals and couples from across the globe had signed the pledge.
 
Buffett's annual charity lunch auction, in which the winning bidder received a private meal with Buffett, became a notable philanthropic tradition. Proceeds from the auction benefited the [[Glide Foundation]] in San Francisco. The auction ran for more than two decades before being discontinued following the 2022 event.


== Recognition ==
== Recognition ==


Buffett has received numerous accolades and honors over the course of his career. In 2011, he was awarded the [[Presidential Medal of Freedom]], the highest civilian honor in the United States, by President [[Barack Obama]].
Buffett has received numerous honors and accolades over his career. In 2011, President [[Barack Obama]] awarded him the [[Presidential Medal of Freedom]], the highest civilian honor in the United States, in recognition of his contributions to business and philanthropy.


Global media outlets have long referred to Buffett as the "Oracle of Omaha" and the "Sage of Omaha," epithets reflecting his track record as an investor and the influence of his public commentary on financial markets.<ref>{{cite news |date=2026-02-23 |title=Warren Buffett Warns Against 5 Money Moves That Are Keeping You Poor |url=https://www.aol.com/articles/warren-buffett-warns-against-5-190009257.html |work=AOL |access-date=2026-02-23}}</ref> [[Forbes]] has consistently ranked Buffett among the wealthiest people in the world for decades; as of January 2026, Forbes estimated his net worth at approximately $148.9 billion, placing him among the ten wealthiest individuals globally.
Global media organizations have consistently included Buffett in rankings of the world's wealthiest and most influential individuals. ''Forbes'' magazine has listed him among the top ten richest people in the world for multiple consecutive decades. The BBC reported in 2008 that Buffett had briefly surpassed Bill Gates as the world's wealthiest individual, based on the performance of Berkshire Hathaway's stock price.<ref>{{cite news |title=Buffett tops rich list |url=http://news.bbc.co.uk/2/hi/business/7280569.stm |work=BBC News |date=2008-03-06 |access-date=2026-02-24}}</ref>


Berkshire Hathaway's annual shareholder meeting in Omaha, often described as the "Woodstock of Capitalism," draws tens of thousands of attendees each year and has become a fixture on the calendar of American business and investing. Buffett's annual shareholder letters are archived and studied by investors, business students, and executives around the world.
Buffett's annual letters to Berkshire Hathaway shareholders are studied by investors, business students, and financial professionals worldwide. Written in accessible, often humorous prose, the letters explain Berkshire's operations and Buffett's investment rationale while offering broader commentary on economics, corporate governance, and market behavior. They are considered among the most important documents in the literature of modern investing.


His investment principles — including the emphasis on buying quality businesses at reasonable prices, the importance of long-term thinking, and the dangers of speculation and leverage — have influenced generations of investors and shaped discourse in the field of finance.<ref>{{cite web |title=Warren Buffett's Florida Speech |url=http://www.intelligentinvestorclub.com/downloads/Warren-Buffett-Florida-Speech.pdf |publisher=Intelligent Investor Club |access-date=2026-02-23}}</ref> Financial publications and advisors regularly cite Buffett's principles in guidance aimed at individual investors, including advice on retirement savings and wealth preservation.<ref>{{cite news |date=2026-02-20 |title=Warren Buffett's 3 Rules for Protecting Your Retirement Savings After 50 |url=https://money.com/warren-buffett-retirement-savings-rules-after-50/ |work=Money |access-date=2026-02-23}}</ref>
The Berkshire Hathaway annual shareholder meeting, held each year in Omaha, draws tens of thousands of attendees and has been described as a "Woodstock for capitalists." The event features hours of questions directed to Buffett and, until his death, Munger, covering topics ranging from individual stock picks to macroeconomic trends.


== Legacy ==
== Legacy ==


From 1970 through 2025, Buffett presided over Berkshire Hathaway's transformation from a declining textile manufacturer into one of the world's most valuable companies and a diversified conglomerate encompassing dozens of industries. The company's performance under his leadership — with Berkshire Hathaway's Class A shares rising from approximately $15 per share in 1965 to prices exceeding $600,000 per share by the mid-2020s — represents one of the longest and most successful track records of capital allocation in the history of public markets.
Warren Buffett's influence on investing, corporate management, and philanthropy extends across multiple generations of practitioners. His articulation and practice of value investing brought the ideas of Benjamin Graham to a global audience, while his partnership with Charlie Munger demonstrated the effectiveness of combining quantitative analysis with qualitative assessment of business quality. The compounding of Berkshire Hathaway's book value over more than half a century under Buffett's stewardship serves as a case study in patient capital allocation.


Buffett's influence extends beyond financial returns. His annual shareholder letters, his public commentary on markets and business, and his personal example of frugality and philanthropy have established him as a central figure in American business culture. The concept of value investing, while originated by Graham and others, gained its broadest popular audience through Buffett's career and public profile.
Buffett's insistence on transparency in shareholder communications set a standard for corporate disclosure. His warnings about the risks of derivatives, issued years before the 2008 financial crisis validated his concerns, underscored his reputation for independent thinking.<ref name="2002letter">{{cite web |title=Berkshire Hathaway 2002 Annual Report — Chairman's Letter |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-24}}</ref> His willingness to invest aggressively during periods of market panic—such as his Goldman Sachs investment in September 2008—illustrated the practical application of the contrarian principles he espoused.


His decision to step down as CEO of Berkshire Hathaway in 2025 while remaining as chairman marked the beginning of a new chapter for the company he built. The appointment of Greg Abel as his successor was closely watched by markets, shareholders, and the financial press, representing one of the most significant leadership transitions in modern corporate history.<ref>{{cite news |date=2026-02-23 |title=Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching. |url=https://www.barrons.com/articles/berkshire-ceo-abel-warren-buffett-055d5469 |work=Barron's |access-date=2026-02-23}}</ref>
The Giving Pledge, co-founded by Buffett, represents an effort to reshape the culture of wealth and charitable giving among the world's richest individuals. If his pledge to donate 99 percent of his fortune is fully realized, Buffett's philanthropic contributions will rank among the largest in history.


Buffett's philanthropic commitments, including the pledge to donate virtually all of his wealth and the founding of The Giving Pledge, have reshaped expectations about the social responsibilities of extreme wealth. The Giving Pledge has attracted participation from hundreds of billionaires worldwide and has contributed to a broader cultural shift in attitudes toward large-scale philanthropy.
As of early 2026, analysts and investors continued to study Berkshire Hathaway's portfolio moves for signals about market conditions and sector valuations,<ref>{{cite news |title=Warren Buffett's Berkshire Hathaway Bought These Stocks. Should You? |url=https://www.morningstar.com/stocks/warren-buffetts-berkshire-hathaway-bought-these-stocks-should-you |work=Morningstar |date=2026-02-24 |access-date=2026-02-24}}</ref> a testament to the enduring influence of Buffett's investment decisions on financial markets and the broader investing public.


== References ==
== References ==
<references />
<references />


[[Category:Investors]]
[[Category:Business executives]]
[[Category:American people]]
[[Category:1930 births]]
[[Category:1930 births]]
[[Category:Living people]]
[[Category:Living people]]
[[Category:People from Omaha, Nebraska]]
[[Category:People from Omaha, Nebraska]]
[[Category:University of Nebraska–Lincoln alumni]]
[[Category:American investors]]
[[Category:Columbia Business School alumni]]
[[Category:American billionaires]]
[[Category:American philanthropists]]
[[Category:American philanthropists]]
[[Category:American businesspeople]]
[[Category:Berkshire Hathaway]]
[[Category:Berkshire Hathaway]]
[[Category:Columbia Business School alumni]]
[[Category:University of Nebraska–Lincoln alumni]]
[[Category:Wharton School of the University of Pennsylvania alumni]]
[[Category:Value investors]]
[[Category:Presidential Medal of Freedom recipients]]
[[Category:Presidential Medal of Freedom recipients]]
[[Category:Value investors]]
[[Category:The Giving Pledge signatories]]
 
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Latest revision as of 18:21, 24 February 2026



Warren Buffett
BornWarren Edward Buffett
30 8, 1930
BirthplaceOmaha, Nebraska, U.S.
NationalityAmerican
OccupationInvestor, businessman, philanthropist
Known forChairman of Berkshire Hathaway, value investing, philanthropy
EducationColumbia Business School (M.S.)
AwardsPresidential Medal of Freedom (2011)
Website[[berkshirehathaway.com berkshirehathaway.com] Official site]

Warren Edward Buffett (born August 30, 1930) is an American investor, businessman, and philanthropist who serves as chairman of the conglomerate Berkshire Hathaway. Often referred to in media as the "Oracle of Omaha," Buffett built one of the largest personal fortunes in history through decades of disciplined value investing, a philosophy he adopted under the tutelage of economist and investor Benjamin Graham at Columbia Business School. The son of a Nebraska congressman and businessman, Buffett displayed an early aptitude for business and numbers, launching his first investment partnerships in the 1950s before acquiring a controlling stake in a struggling textile manufacturer that he would transform into one of the world's largest and most diversified holding companies. Under his leadership, Berkshire Hathaway grew from a declining New England mill into a multinational conglomerate with interests spanning insurance, energy, railroads, retail, and manufacturing, while its stock price became one of the most expensive per share on any American exchange. At Berkshire Hathaway's annual investor conference on May 3, 2025, Buffett requested that the board appoint Greg Abel to succeed him as chief executive officer by year's end, while he would remain as chairman of the board.[1] Buffett has pledged to donate 99 percent of his wealth to philanthropic causes and co-founded The Giving Pledge in 2010 alongside Bill Gates and Melinda French Gates, encouraging other billionaires to commit at least half of their fortunes to charity.

Early Life

Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, to Howard Homan Buffett and Leila (née Stahl) Buffett. His father, Howard Buffett, was a businessman and stockbroker who later served four terms as a United States congressman representing Nebraska's second congressional district. The family's roots in Omaha were deep, and Warren grew up in a household where business and public affairs were frequent topics of conversation.

From an early age, Buffett exhibited a pronounced interest in business and money-making. As a boy, he sold chewing gum, Coca-Cola bottles, and weekly magazines door to door in his Omaha neighborhood. He purchased his first stock at the age of eleven and filed his first tax return at thirteen, claiming a $35 deduction for the use of his bicycle in his paper delivery route.[2] By the time he finished high school, Buffett had accumulated savings from various entrepreneurial endeavors, including owning pinball machines placed in local barbershops.

Buffett's childhood was also shaped by his father's political career and the family's periods of residence in Washington, D.C., where Howard Buffett served in Congress. Despite these relocations, Warren maintained a strong connection to Omaha, a city that would remain his home for the rest of his life. His early fascination with numbers, compound interest, and the mechanics of business laid the groundwork for an investment career that would span more than seven decades.

Education

Buffett entered the Wharton School of the University of Pennsylvania in 1947, where he studied business for two years. Finding the curriculum insufficiently practical for his interests, he transferred to the University of Nebraska–Lincoln, from which he graduated at the age of twenty with a Bachelor of Science in business administration.[3]

After completing his undergraduate degree, Buffett applied to Harvard Business School but was rejected. He subsequently enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, both noted securities analysts and authors of the influential text Security Analysis, were members of the faculty. At Columbia, Buffett studied under Graham, whose concept of value investing—purchasing securities at prices below their intrinsic value—became the intellectual foundation of Buffett's entire investment approach. Buffett earned a Master of Science in economics from Columbia in 1951. He also attended the New York Institute of Finance to further develop his economics background. Graham was the only professor to give Buffett an A+ grade at Columbia, a distinction that reflected the depth of the student's engagement with the material.

Career

Early Partnerships and Benjamin Graham

After graduating from Columbia, Buffett returned to Omaha and worked as a stockbroker at his father's firm, Buffett-Falk & Co. In 1954, Benjamin Graham offered Buffett a position at his investment firm, Graham-Newman Corp., in New York City. Buffett accepted and spent two years working directly under Graham, deepening his understanding of value investing through hands-on practice. When Graham retired and dissolved the partnership in 1956, Buffett returned to Omaha.

That same year, at the age of twenty-five, Buffett established Buffett Partnership Ltd., a private investment partnership. Starting with $105,100 in combined capital from seven limited partners—including family members and friends—Buffett began applying Graham's principles to identify undervalued stocks. Over the next thirteen years, the partnership achieved compound annual returns that far exceeded the performance of the Dow Jones Industrial Average. By 1965, the partnership's assets had grown substantially, and Buffett's reputation as a skilled stock picker was firmly established among a small circle of investors.

Acquisition of Berkshire Hathaway

In 1962, Buffett Partnership Ltd. began purchasing shares of Berkshire Hathaway, then a struggling textile manufacturing company based in New Bedford, Massachusetts. By 1965, Buffett had accumulated enough shares to take control of the company. Although the textile operations continued to decline, Buffett used Berkshire Hathaway as a vehicle for deploying capital into more profitable enterprises, particularly insurance companies, which generated float—premiums collected before claims were paid—that could be invested elsewhere.

Buffett dissolved his investment partnerships in 1969 and 1970, distributing assets to partners. He emerged as the chairman and largest shareholder of Berkshire Hathaway in 1970, a position he would hold for more than five decades. The transformation of Berkshire from a failing textile operation into a diversified holding company is central to Buffett's career narrative. He later described the original textile investment as one of his worst decisions, noting that the capital trapped in the declining business could have been deployed more profitably elsewhere. Nevertheless, the Berkshire Hathaway corporate shell proved an effective platform for his investment activities.

Building Berkshire Hathaway

Under Buffett's stewardship, Berkshire Hathaway expanded through a combination of whole-company acquisitions and strategic stock investments. In the insurance sector, Berkshire acquired GEICO, General Re, and numerous smaller insurers, creating a massive pool of investable float. Beyond insurance, Buffett directed acquisitions in diverse industries including candy (See's Candies), newspapers (the Buffalo News and later the Omaha World-Herald), furniture retail (Nebraska Furniture Mart), and jewelry (Borsheims).

In 1978, Charlie Munger, a fellow investor and long-time business associate, joined Buffett as vice-chairman of Berkshire Hathaway. Munger's influence on Buffett's thinking was substantial; he encouraged Buffett to move beyond Graham's strict focus on statistically cheap stocks toward purchasing high-quality businesses at reasonable prices, an evolution Buffett later acknowledged publicly. The Buffett-Munger partnership became one of the most celebrated collaborations in American business history, lasting until Munger's death in November 2023 at the age of ninety-nine.

Berkshire Hathaway's stock portfolio included long-term positions in major American corporations. Buffett's investment in Coca-Cola, initiated in 1988, became one of his most iconic holdings. He also maintained significant positions in companies such as American Express, Wells Fargo, and Apple Inc., the latter becoming Berkshire's single largest equity holding by market value in the 2020s.

The Salomon Brothers Crisis

In 1991, Buffett was thrust into one of the most consequential episodes of his career when a scandal erupted at Salomon Brothers, the Wall Street investment bank in which Berkshire Hathaway held a significant stake. Salomon traders had submitted false bids in U.S. Treasury bond auctions, and the firm faced potential criminal prosecution and the loss of its license to trade government securities. Buffett stepped in as interim chairman of Salomon Brothers to manage the crisis, testifying before Congress and working to restore the firm's credibility with regulators. His appearance before the House Subcommittee on Telecommunications and Finance included the oft-quoted admonition to Salomon employees: "Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless."[4] His intervention helped save the firm from collapse and reinforced his reputation for personal integrity.

Investment Philosophy

Buffett's investment approach, rooted in the value investing framework of Benjamin Graham, emphasizes purchasing shares of companies at prices below their calculated intrinsic value. Over time, influenced by Charlie Munger, Buffett refined this approach to focus on companies with durable competitive advantages—what he termed "economic moats"—strong management, and consistent earnings power, even when such businesses were not available at the deep discounts Graham typically sought.

Buffett has consistently advocated for long-term holding periods, famously stating that his "favorite holding period is forever." He has expressed skepticism toward complex financial instruments, describing derivatives in his 2002 letter to Berkshire shareholders as "financial weapons of mass destruction."[5] This warning gained renewed attention during the 2007–2008 financial crisis when derivatives played a central role in the near-collapse of several major financial institutions.

Buffett has also been a vocal critic of gold as an investment, arguing that it is a non-productive asset. In his view, investments in productive businesses and farmland generate returns over time, while gold merely sits inertly. This perspective has remained consistent even during periods of surging gold prices.[6]

A market indicator bearing his name—the "Buffett indicator"—compares the total market capitalization of publicly traded stocks to the country's gross domestic product. Analysts and financial commentators have used this metric as a gauge of whether the overall stock market is overvalued or undervalued.[7]

The 2008 Financial Crisis

During the global financial crisis of 2007–2008, Buffett emerged as a stabilizing force in American financial markets. In September 2008, as confidence in major financial institutions wavered, Berkshire Hathaway invested $5 billion in Goldman Sachs through the purchase of preferred stock carrying a 10 percent annual dividend, along with warrants to purchase additional common shares.[8] Goldman Sachs later redeemed Buffett's preferred stake in March 2011 at a premium, paying $5.65 billion.[9] Berkshire also made significant investments in General Electric and other companies during the downturn, capitalizing on distressed valuations while simultaneously providing a vote of confidence in the American financial system.

Buffett published an op-ed in The New York Times in October 2008 titled "Buy American. I Am," urging investors to purchase American equities despite the prevailing fear in markets. His willingness to deploy capital during periods of extreme pessimism exemplified the contrarian element of his investment philosophy.

Major Acquisitions and Later Career

Berkshire Hathaway continued to grow through major acquisitions in the 2000s and 2010s. In 2008, Berkshire participated in financing the Dow Chemical Company's $19 billion acquisition of Rohm and Haas.[10] In 2010, Berkshire completed its acquisition of Burlington Northern Santa Fe Corporation (BNSF), one of North America's largest railroad companies, in a deal valued at approximately $44 billion. Buffett described railroads as essential to the American economy and the BNSF purchase as an "all-in wager on the economic future of the United States."

Berkshire's portfolio continued to evolve in subsequent years. The company reduced holdings in some consumer staples companies, including selling portions of its positions in Johnson & Johnson and Procter & Gamble.[11] In the fourth quarter of 2025, Berkshire Hathaway's stock purchases continued to attract attention from value-focused investors tracking the firm's regulatory filings.[12]

CEO Succession

At Berkshire Hathaway's annual shareholder meeting on May 3, 2025, Buffett announced that he would step down as chief executive officer by year's end, recommending that the board appoint Greg Abel, who had been serving as vice-chairman of non-insurance operations, as his successor. Buffett stated that he would remain as chairman of the board. The announcement marked the culmination of years of succession planning at Berkshire, a topic that had been the subject of extensive speculation among investors and analysts given Buffett's advanced age and his central role in the company's operations and culture.

Personal Life

Warren Buffett has resided in Omaha, Nebraska, for the majority of his adult life. He purchased his home in the Dundee neighborhood of Omaha in 1958, and as of the mid-2020s continues to live there—a fact frequently cited as emblematic of his well-documented frugality. Despite accumulating one of the largest personal fortunes in history, Buffett has maintained relatively modest personal spending habits compared to peers of similar wealth.

Buffett married Susan Thompson in 1952. The couple had three children: Susie, Howard, and Peter. Susan Buffett moved to San Francisco in 1977 to pursue a singing career, though the couple remained married and maintained a close relationship. Before her departure, Susan introduced Warren to Astrid Menks, who became his companion and later his second wife. Susan Buffett died in 2004, and Warren married Astrid Menks in 2006.

Buffett has spoken publicly about the relationship between wealth and happiness, stating: "If you aren't happy having $50,000 or $100,000, you are not going to be happy if you have $50 million or $100 million."[13]

Buffett is a member of the Democratic Party.

Philanthropy

Buffett has committed to donating the vast majority of his wealth to charitable causes. In 2006, he announced that he would gradually give approximately 85 percent of his Berkshire Hathaway shares to five foundations, with the largest portion directed to the Bill & Melinda Gates Foundation. Over subsequent years, he increased his pledge to 99 percent of his fortune.

In 2010, Buffett, along with Bill Gates and Melinda French Gates, launched The Giving Pledge, a campaign to encourage the wealthiest individuals in the world to commit at least half of their wealth to philanthropy. By the mid-2020s, more than 200 individuals and couples from across the globe had signed the pledge.

Buffett's annual charity lunch auction, in which the winning bidder received a private meal with Buffett, became a notable philanthropic tradition. Proceeds from the auction benefited the Glide Foundation in San Francisco. The auction ran for more than two decades before being discontinued following the 2022 event.

Recognition

Buffett has received numerous honors and accolades over his career. In 2011, President Barack Obama awarded him the Presidential Medal of Freedom, the highest civilian honor in the United States, in recognition of his contributions to business and philanthropy.

Global media organizations have consistently included Buffett in rankings of the world's wealthiest and most influential individuals. Forbes magazine has listed him among the top ten richest people in the world for multiple consecutive decades. The BBC reported in 2008 that Buffett had briefly surpassed Bill Gates as the world's wealthiest individual, based on the performance of Berkshire Hathaway's stock price.[14]

Buffett's annual letters to Berkshire Hathaway shareholders are studied by investors, business students, and financial professionals worldwide. Written in accessible, often humorous prose, the letters explain Berkshire's operations and Buffett's investment rationale while offering broader commentary on economics, corporate governance, and market behavior. They are considered among the most important documents in the literature of modern investing.

The Berkshire Hathaway annual shareholder meeting, held each year in Omaha, draws tens of thousands of attendees and has been described as a "Woodstock for capitalists." The event features hours of questions directed to Buffett and, until his death, Munger, covering topics ranging from individual stock picks to macroeconomic trends.

Legacy

Warren Buffett's influence on investing, corporate management, and philanthropy extends across multiple generations of practitioners. His articulation and practice of value investing brought the ideas of Benjamin Graham to a global audience, while his partnership with Charlie Munger demonstrated the effectiveness of combining quantitative analysis with qualitative assessment of business quality. The compounding of Berkshire Hathaway's book value over more than half a century under Buffett's stewardship serves as a case study in patient capital allocation.

Buffett's insistence on transparency in shareholder communications set a standard for corporate disclosure. His warnings about the risks of derivatives, issued years before the 2008 financial crisis validated his concerns, underscored his reputation for independent thinking.[15] His willingness to invest aggressively during periods of market panic—such as his Goldman Sachs investment in September 2008—illustrated the practical application of the contrarian principles he espoused.

The Giving Pledge, co-founded by Buffett, represents an effort to reshape the culture of wealth and charitable giving among the world's richest individuals. If his pledge to donate 99 percent of his fortune is fully realized, Buffett's philanthropic contributions will rank among the largest in history.

As of early 2026, analysts and investors continued to study Berkshire Hathaway's portfolio moves for signals about market conditions and sector valuations,[16] a testament to the enduring influence of Buffett's investment decisions on financial markets and the broader investing public.

References

  1. ↑ "Berkshire Hathaway Annual Meeting 2025".Berkshire Hathaway.http://www.berkshirehathaway.com/letters/2002pdf.pdf.Retrieved 2026-02-24.
  2. ↑ "Warren Buffett Timeline".About.com.http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm.Retrieved 2026-02-24.
  3. ↑ "Warren Buffett Timeline".About.com.http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm.Retrieved 2026-02-24.
  4. ↑ "John Gutfreund".Duke University Fuqua School of Business.http://mbaa.fuqua.duke.edu/ldi/press_johngutfreund.html.Retrieved 2026-02-24.
  5. ↑ "Berkshire Hathaway 2002 Annual Report — Chairman's Letter".Berkshire Hathaway.http://www.berkshirehathaway.com/letters/2002pdf.pdf.Retrieved 2026-02-24.
  6. ↑ "Buffett's unpopular view on the gold boom".TheStreet.2026-02-24.https://www.thestreet.com/investing/buffetts-unpopular-view-on-the-gold-boom.Retrieved 2026-02-24.
  7. ↑ "Could the US stock market collapse? Here's what the Warren Buffett indicator says".The Motley Fool UK.2026-02-21.https://www.fool.co.uk/2026/02/21/could-the-us-stock-market-collapse-heres-what-the-warren-buffett-indicator-says/.Retrieved 2026-02-24.
  8. ↑ "Berkshire Hathaway to Invest $5 Billion in Goldman Sachs".Goldman Sachs.2008-09-23.https://web.archive.org/web/20081220053032/http://www2.goldmansachs.com/our-firm/press/press-releases/current/berkshire-hathaway-invest.html.Retrieved 2026-02-24.
  9. ↑ "Goldman Sachs to Pay $5.65 Billion to Redeem Buffett's Stake".Bloomberg Businessweek.2011-03-18.http://www.businessweek.com/news/2011-03-18/goldman-sachs-to-pay-5-65-billion-to-redeem-buffett-s-stake.html.Retrieved 2026-02-24.
  10. ↑ "Buffett helps Dow pay $19bn for R&H".FT Alphaville.2008-07-11.http://ftalphaville.ft.com/blog/2008/07/11/14430/buffett-helps-dow-pay-19bn-for-rh/.Retrieved 2026-02-24.
  11. ↑ "Berkshire sells Johnson & Johnson, Procter & Gamble".Financial Express.2009-02-17.http://www.financialexpress.com/news/berkshire-sells-johnson-&-johnson-procter-&-gamble/425035/.Retrieved 2026-02-24.
  12. ↑ "3 Stocks Warren Buffett and Berkshire Were Gobbling Up in Q4".Barchart.com.2026-02-23.https://www.barchart.com/story/news/360791/3-stocks-warren-buffett-and-berkshire-were-gobbling-up-in-q4.Retrieved 2026-02-24.
  13. ↑ "Quote of the day by Warren Buffett".The Economic Times.2026-02-24.https://m.economictimes.com/magazines/panache/quote-of-the-day-by-warren-buffett-if-you-arent-happy-having-50000-10000-you-are-not-going-to-be-happy-if-you-have-50-million-or-100-million/articleshow/128677545.cms.Retrieved 2026-02-24.
  14. ↑ "Buffett tops rich list".BBC News.2008-03-06.http://news.bbc.co.uk/2/hi/business/7280569.stm.Retrieved 2026-02-24.
  15. ↑ "Berkshire Hathaway 2002 Annual Report — Chairman's Letter".Berkshire Hathaway.http://www.berkshirehathaway.com/letters/2002pdf.pdf.Retrieved 2026-02-24.
  16. ↑ "Warren Buffett's Berkshire Hathaway Bought These Stocks. Should You?".Morningstar.2026-02-24.https://www.morningstar.com/stocks/warren-buffetts-berkshire-hathaway-bought-these-stocks-should-you.Retrieved 2026-02-24.

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