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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
| title        = Chairman, Berkshire Hathaway
| employer    = [[Berkshire Hathaway]]
| awards      = Presidential Medal of Freedom
| 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 [[Berkshire Hathaway]], a multinational conglomerate holding company headquartered in [[Omaha, Nebraska]]. Over a career spanning more than seven decades, Buffett transformed a struggling textile manufacturer into one of the world's largest and most diversified corporations, building an extraordinary track record of investment returns that has made him one of the most closely followed figures in global finance. Often referred to in the media as the "Oracle of Omaha" or the "Sage of Omaha," Buffett developed his approach to investing around the principles of value investing first articulated by 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> He served as Berkshire Hathaway's chief executive officer from 1970 until 2025, when he requested the board appoint [[Greg Abel]] as his successor in the CEO role while retaining the chairmanship.<ref>{{cite news |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?gaa_at=eafs&gaa_n=AWEtsqdZRjPxwQs8DhOsiFJbcgwydvnohsGhshA3dzp3krv_aIHgcMrJjTwK&gaa_ts=699cf54b&gaa_sig=ztwxZqwZnePFGNvkiB7CVWZSIAySnLLLm4TwyUTlOrIsK-Ndx8s00DFYlru6YXRC5aNk742-IEiD0H3LSHoEYw%3D%3D |work=Barron's |date=2026-02-23 |access-date=2026-02-23}}</ref> Beyond his business accomplishments, Buffett is known for his commitment to philanthropy, having pledged to give away 99 percent of his fortune, and for co-founding [[The Giving Pledge]] in 2010 alongside [[Bill Gates]] and [[Melinda French Gates]].


== 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. He was the second of three children and the only son of Howard Buffett, a businessman and United States congressman, and Leila (née Stahl) Buffett. Growing up during the [[Great Depression]], Buffett developed an early interest in business and finance. His father's career as a stockbroker and later as a member of the U.S. House of Representatives exposed the young Buffett to the worlds of both commerce and public affairs from an early age.<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 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>
Buffett showed entrepreneurial inclinations from childhood. He reportedly bought his first stock at age 11 and filed his first tax return at age 13, claiming a deduction for his bicycle as a business expense used for his paper route. He engaged in various small business ventures throughout his youth, including selling chewing gum, Coca-Cola bottles, and weekly magazines door to door. As a teenager, he and a friend purchased a used pinball machine and placed it in a local barber shop, eventually expanding the venture to multiple machines in several shops before selling the business.


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.
By the time he graduated from high school, Buffett had already accumulated savings of approximately $5,000—a significant sum in the late 1940s—from his various business endeavors. Despite his early aptitude for business, his father initially encouraged him to pursue higher education, which would set the stage for the formal intellectual foundation of Buffett's investment philosophy.


== 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. He found the academic environment insufficiently practical and transferred to the [[University of Nebraska–Lincoln]], where he completed his bachelor's degree in business administration at the age of 20.


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 graduating from Nebraska, Buffett applied to [[Harvard Business School]] but was rejected. This proved to be a pivotal moment, as he subsequently discovered that Benjamin Graham, whose book ''The Intelligent Investor'' had made a deep impression on him, was teaching at [[Columbia Business School]]. Buffett enrolled at Columbia, where he studied under Graham and fellow professor [[David Dodd]], both pioneers of [[value investing]]—the discipline of purchasing securities trading below their intrinsic value. Graham's teachings would form the intellectual bedrock of Buffett's career. Buffett earned his Master of Science in Economics from Columbia in 1951.<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 also attended the [[New York Institute of Finance]] to further develop his economics background.


== Career ==
== Career ==


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


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 completing his education at Columbia, Buffett returned to Omaha and worked as a stockbroker. He maintained close contact with Benjamin Graham and in 1954 accepted an offer to work at Graham's investment firm, Graham-Newman Corp., in New York City. During his time at Graham-Newman, Buffett refined the analytical methods and value-oriented discipline that would characterize his investing style for decades to come. When Graham retired and closed the firm in 1956, Buffett returned to Omaha.


=== Buffett Partnership Ltd. ===
In 1956, Buffett established Buffett Partnership Ltd., an investment partnership modeled in some respects on the partnership structure Graham had employed. Starting with $105,100 in capital—$100 of which was his own—Buffett attracted investments from family members and acquaintances in Omaha. Over the next several years, the partnership achieved returns that consistently exceeded market benchmarks. Buffett charged no management fee, instead taking 25 percent of profits above a 6 percent threshold, aligning his interests with those of his partners. By the early 1960s, the partnership had grown into a multimillion-dollar enterprise and Buffett had become a millionaire.


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>
=== 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 began purchasing shares of Berkshire Hathaway, then a struggling New England textile manufacturing company. He initially acquired the stock because it was trading below its intrinsic value—a classic value-investing proposition. By 1965, Buffett's partnership had accumulated enough shares to take control of the company. Buffett dissolved his investment partnerships in 1969 and distributed the assets to his partners, many of whom received shares of Berkshire Hathaway.


=== Building Berkshire Hathaway ===
Buffett emerged as the company's chairman and majority shareholder in 1970, a position he would hold for more than five decades.<ref name="berkshire2002">{{cite web |title=Berkshire Hathaway 2002 Annual Report – Chairman's Letter |url=http://www.berkshirehathaway.com/letters/2002pdf.pdf |publisher=Berkshire Hathaway |access-date=2026-02-23}}</ref> Although the textile operations eventually proved unviable and were shut down in 1985, Buffett used Berkshire Hathaway as a vehicle for a vast array of investments and acquisitions. The company evolved into a diversified holding company with interests in insurance, energy, railroads, manufacturing, retail, and financial services.


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.
The insurance business, beginning with the 1967 acquisition of National Indemnity Company, became central to Berkshire's strategy. Insurance operations generated "float"—premiums collected before claims are paid—which Buffett deployed as a low-cost source of investment capital. Over time, Berkshire's insurance subsidiaries grew to include GEICO and General Re, among others.


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.
In 1978, [[Charlie Munger]], a fellow investor and long-time business associate, joined Buffett as vice chairman of Berkshire Hathaway. Munger became Buffett's most trusted intellectual partner, and the two developed a collaborative approach to capital allocation that blended Graham's quantitative value-investing framework with a greater emphasis on the qualitative characteristics of businesses—what Buffett described as buying "wonderful companies at fair prices" rather than "fair companies at wonderful prices."


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]].
=== Major Investments and Transactions ===


=== Investment Philosophy ===
Throughout the 1980s and 1990s, Buffett made a series of major investments that came to define Berkshire Hathaway's portfolio. His concentrated position in [[The Coca-Cola Company]], first acquired in 1988, became one of the most celebrated investments in financial history. Berkshire's portfolio also included substantial stakes in American Express, Wells Fargo, and The Washington Post Company, among others.
 
Buffett was an outspoken critic of financial derivatives, which he described in Berkshire's 2002 annual report as "financial weapons of mass destruction."<ref name="berkshire2002" /> He warned that the proliferation of complex derivative instruments posed systemic risks to the financial system, a position that gained considerable attention in the wake of the [[Financial crisis of 2007–2008|2007–2008 financial crisis]].


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>
During the financial crisis of 2008, Buffett made several high-profile investments that both provided capital to distressed firms and generated significant returns for Berkshire. In September 2008, Berkshire Hathaway invested $5 billion in [[Goldman Sachs]] in the form of perpetual preferred stock carrying a 10 percent dividend yield, along with warrants to purchase common stock.<ref>{{cite web |title=Berkshire Hathaway Invests 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 |access-date=2026-02-23}}</ref> Goldman Sachs subsequently redeemed Buffett's preferred stake in 2011, paying $5.65 billion—the original $5 billion investment plus a 10 percent premium.<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=2026-02-23}}</ref>


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 also participated in the financing of [[Dow Chemical Company]]'s $19 billion acquisition of Rohm and Haas in 2008.<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=2026-02-23}}</ref> These crisis-era investments underscored Buffett's long-standing approach of deploying capital when others were fearful—a principle he has often summarized as being "greedy when others are fearful and fearful when others are greedy."


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>
Berkshire's portfolio management has also included notable exits. The company sold positions in Johnson & Johnson and Procter & Gamble at various points as Buffett rebalanced the portfolio.<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 |access-date=2026-02-23}}</ref>


=== Key Transactions and Crisis-Era Investments ===
=== Berkshire Hathaway's Growth ===


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>
Under Buffett's leadership, Berkshire Hathaway grew from a failing textile company with a share price of approximately $19 in 1965 to one of the most valuable publicly traded companies in the world. The company's Class A shares became the highest-priced shares on the New York Stock Exchange, a distinction Buffett maintained deliberately by refusing to split the stock, arguing that a high share price attracted long-term investors. (Class B shares were eventually introduced in 1996 at a fraction of the Class A price to provide more accessible entry for smaller investors.)


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>
Berkshire recorded its most profitable single quarter in its history during one period, reflecting the cumulative strength of its diversified operations and investment portfolio.<ref>{{cite web |title=Warren Buffett's Firm Just Made the Most Money Ever in a Single Quarter |url=http://qz.com/244132/warren-buffetts-firm-just-made-the-most-money-ever-in-a-single-quarter/ |publisher=Quartz |access-date=2026-02-23}}</ref>


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>
Buffett's investment decisions continued to attract close attention from market participants. In the fourth quarter of 2025, during Buffett's final quarter as CEO, Berkshire Hathaway continued its pattern of selling more stocks than it bought, signaling a cautious posture amid elevated market valuations.<ref>{{cite news |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 |date=2026-02-22 |access-date=2026-02-23}}</ref> Value-focused investors have long tracked Berkshire's quarterly portfolio disclosures for insight into Buffett's assessment of market conditions.<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=2026-02-23}}</ref>


=== CEO Succession ===
=== CEO Succession ===


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>
At Berkshire Hathaway's annual shareholder meeting on May 3, 2025, Buffett requested that the board of directors appoint [[Greg Abel]], who had been serving as vice chairman of non-insurance operations, to succeed him as chief executive officer by the end of 2025. Buffett indicated he would remain as chairman of the board.<ref name="barrons">{{cite news |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?gaa_at=eafs&gaa_n=AWEtsqdZRjPxwQs8DhOsiFJbcgwydvnohsGhshA3dzp3krv_aIHgcMrJjTwK&gaa_ts=699cf54b&gaa_sig=ztwxZqwZnePFGNvkiB7CVWZSIAySnLLLm4TwyUTlOrIsK-Ndx8s00DFYlru6YXRC5aNk742-IEiD0H3LSHoEYw%3D%3D |work=Barron's |date=2026-02-23 |access-date=2026-02-23}}</ref> The transition marked the end of Buffett's 55-year tenure as CEO, one of the longest such tenures in American corporate history. As of February 2026, Abel was preparing to deliver his first shareholder letter, an event closely watched by Wall Street analysts and Berkshire investors.<ref name="barrons" />


=== Tax Contributions and Public Statements ===
=== Investment Philosophy ===


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."
Buffett's investment philosophy, rooted in the value-investing principles he learned from Benjamin Graham at Columbia, centers on several core tenets: purchasing securities at prices below their intrinsic value, focusing on businesses with durable competitive advantages (which Buffett has termed "economic moats"), maintaining a long-term holding period, and exercising discipline in capital allocation. In his letters to Berkshire shareholders—published annually and read by investors worldwide—Buffett has consistently emphasized the importance of compound interest and the virtue of patience in wealth building.<ref>{{cite news |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 |date=2026-02-21 |access-date=2026-02-23}}</ref>


== Personal Life ==
He has also articulated rules for managing risk, particularly for individuals approaching or in retirement, emphasizing the preservation of capital and the avoidance of speculation.<ref>{{cite news |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 |date=2026-02-20 |access-date=2026-02-23}}</ref>
 
The "Buffett Indicator," a ratio comparing total U.S. stock market capitalization to gross domestic product, has become a tool used by analysts to gauge whether the market is overvalued or undervalued. As of early 2026, the indicator was at elevated levels, prompting discussion among market commentators about potential risks to equity markets.<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=2026-02-23}}</ref>


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.
=== Salomon Brothers ===


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.
One notable chapter in Buffett's career involved his role at [[Salomon Brothers]], the Wall Street investment bank. Berkshire Hathaway had been a major shareholder of Salomon, and when a Treasury bond bidding scandal erupted in 1991, Buffett stepped in as interim chairman to restore the firm's credibility with regulators and clients. John Gutfreund, Salomon's CEO, resigned amid the scandal.<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=2026-02-23}}</ref> Buffett's willingness to intervene personally and his dealings with the U.S. Treasury Department were credited with preventing the firm's collapse and preserving confidence in the government bond market.


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.
== Personal Life ==


== Philanthropy ==
Buffett has been known for maintaining a lifestyle characterized by frugality relative to his wealth. He has lived in the same house in Omaha, Nebraska, that he purchased in 1958, and he is known for his preference for simple pleasures, including Cherry Coca-Cola and meals from local Omaha restaurants.


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 married Susan Thompson in 1952. The couple had three children. Susan Buffett moved to San Francisco in 1977 to pursue a career in music and public service, though the couple remained married. Before her departure, Susan introduced Buffett to Astrid Menks, who became his companion. Following Susan's death in 2004, Buffett married Astrid Menks in 2006.


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.
On the topic of taxation, Buffett has publicly stated that Berkshire Hathaway is among the largest corporate taxpayers in the United States. In early 2026, Buffett noted that if approximately 800 companies paid the Internal Revenue Service at the same rate as Berkshire, no individual American would owe a "dime" in federal taxes, including Social Security taxes.<ref>{{cite news |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 |date=2026-02-21 |access-date=2026-02-23}}</ref>


== 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 awards and honors over the course of his career. In 2011, he was awarded the [[Presidential Medal of Freedom]] by President [[Barack Obama]], the highest civilian honor in the United States.


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 outlets have long referred to Buffett as the "Oracle of Omaha" and the "Sage of Omaha," reflecting his reputation for prescient investment decisions and his willingness to share his thinking publicly through annual shareholder letters, interviews, and the Berkshire Hathaway annual meeting in Omaha—an event that regularly attracts tens of thousands of attendees and has been described as the "Woodstock of Capitalism."


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.
Forbes has consistently ranked Buffett among the wealthiest individuals in the world. He was ranked as the richest person in the world by Forbes in 2008.<ref>{{cite news |title=Buffett tops Forbes rich list |url=http://news.bbc.co.uk/2/hi/business/7280569.stm |work=BBC News |date=2008-03-06 |access-date=2026-02-23}}</ref> As of January 2026, Forbes estimated his net worth at approximately $148.9 billion, ranking him the ninth-richest individual globally.


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>
Buffett's annual letters to Berkshire Hathaway shareholders are considered essential reading in the investment community. The letters, which Buffett has written every year since taking control of the company, combine financial reporting with philosophical reflections on investing, business management, and economic conditions. They are archived and made freely available on the Berkshire Hathaway website.


== 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.
Buffett's influence on the field of investing extends well beyond his personal financial returns. His articulation and practice of value investing—buying undervalued securities in companies with strong fundamentals and holding them for the long term—helped popularize an approach that had been largely academic before Buffett demonstrated its practical power on a massive scale. His partnership with Charlie Munger broadened the value-investing framework to incorporate qualitative assessments of business quality, management integrity, and competitive positioning.


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.
Through his annual shareholder letters and public appearances, Buffett has served as an educator to generations of investors. His emphasis on rational thinking, intellectual honesty about mistakes, and the discipline of operating within one's "circle of competence" has influenced investment professionals and individual investors alike.


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>
Buffett's philanthropic commitments represent one of the largest charitable pledges in history. In 2006, he announced that he would gradually give away the bulk of his Berkshire Hathaway shares to philanthropic foundations, with the largest portion directed to the [[Bill & Melinda Gates Foundation]]. In 2010, Buffett co-founded [[The Giving Pledge]] with Bill Gates and Melinda French Gates, an initiative in which billionaires commit to donating the majority of their wealth to philanthropy during their lifetimes or in their wills. As of 2026, more than 200 individuals and couples from around the world had signed the pledge.


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.
The succession to Greg Abel as CEO of Berkshire Hathaway, announced in May 2025, marked the beginning of a new era for the company while Buffett retained the chairman's role. The transition was closely watched as a test of whether the corporate culture and investment discipline Buffett built over more than half a century could endure beyond his direct management.<ref name="barrons" />
 
Buffett's influence on corporate governance, capital allocation, and the role of long-term thinking in business has left a mark on American capitalism that extends far beyond the performance of any single investment portfolio.


== References ==
== References ==
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[[Category:University of Nebraska–Lincoln alumni]]
[[Category:Columbia Business School alumni]]
[[Category:Columbia Business School alumni]]
[[Category:Berkshire Hathaway]]
[[Category:American philanthropists]]
[[Category:American philanthropists]]
[[Category:Berkshire Hathaway]]
[[Category:Presidential Medal of Freedom recipients]]
[[Category:Presidential Medal of Freedom recipients]]
[[Category:Value investors]]
[[Category:American billionaires]]
 
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Revision as of 01:40, 24 February 2026


Warren Buffett
BornWarren Edward Buffett
30 8, 1930
BirthplaceOmaha, Nebraska, U.S.
NationalityAmerican
OccupationInvestor, businessman, philanthropist
TitleChairman, Berkshire Hathaway
Known forChairman of Berkshire Hathaway, value investing, philanthropy
EducationColumbia Business School (M.S.)
AwardsPresidential Medal of Freedom
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 Berkshire Hathaway, a multinational conglomerate holding company headquartered in Omaha, Nebraska. Over a career spanning more than seven decades, Buffett transformed a struggling textile manufacturer into one of the world's largest and most diversified corporations, building an extraordinary track record of investment returns that has made him one of the most closely followed figures in global finance. Often referred to in the media as the "Oracle of Omaha" or the "Sage of Omaha," Buffett developed his approach to investing around the principles of value investing first articulated by his mentor, Benjamin Graham, at Columbia Business School.[1] He served as Berkshire Hathaway's chief executive officer from 1970 until 2025, when he requested the board appoint Greg Abel as his successor in the CEO role while retaining the chairmanship.[2] Beyond his business accomplishments, Buffett is known for his commitment to philanthropy, having pledged to give away 99 percent of his fortune, and for co-founding The Giving Pledge in 2010 alongside Bill Gates and Melinda French Gates.

Early Life

Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska. He was the second of three children and the only son of Howard Buffett, a businessman and United States congressman, and Leila (née Stahl) Buffett. Growing up during the Great Depression, Buffett developed an early interest in business and finance. His father's career as a stockbroker and later as a member of the U.S. House of Representatives exposed the young Buffett to the worlds of both commerce and public affairs from an early age.[3]

Buffett showed entrepreneurial inclinations from childhood. He reportedly bought his first stock at age 11 and filed his first tax return at age 13, claiming a deduction for his bicycle as a business expense used for his paper route. He engaged in various small business ventures throughout his youth, including selling chewing gum, Coca-Cola bottles, and weekly magazines door to door. As a teenager, he and a friend purchased a used pinball machine and placed it in a local barber shop, eventually expanding the venture to multiple machines in several shops before selling the business.

By the time he graduated from high school, Buffett had already accumulated savings of approximately $5,000—a significant sum in the late 1940s—from his various business endeavors. Despite his early aptitude for business, his father initially encouraged him to pursue higher education, which would set the stage for the formal intellectual foundation of Buffett's investment philosophy.

Education

Buffett entered the Wharton School of the University of Pennsylvania in 1947, where he studied business for two years. He found the academic environment insufficiently practical and transferred to the University of Nebraska–Lincoln, where he completed his bachelor's degree in business administration at the age of 20.

After graduating from Nebraska, Buffett applied to Harvard Business School but was rejected. This proved to be a pivotal moment, as he subsequently discovered that Benjamin Graham, whose book The Intelligent Investor had made a deep impression on him, was teaching at Columbia Business School. Buffett enrolled at Columbia, where he studied under Graham and fellow professor David Dodd, both pioneers of value investing—the discipline of purchasing securities trading below their intrinsic value. Graham's teachings would form the intellectual bedrock of Buffett's career. Buffett earned his Master of Science in Economics from Columbia in 1951.[4] He also attended the New York Institute of Finance to further develop his economics background.

Career

Early Partnerships and Graham-Newman

After completing his education at Columbia, Buffett returned to Omaha and worked as a stockbroker. He maintained close contact with Benjamin Graham and in 1954 accepted an offer to work at Graham's investment firm, Graham-Newman Corp., in New York City. During his time at Graham-Newman, Buffett refined the analytical methods and value-oriented discipline that would characterize his investing style for decades to come. When Graham retired and closed the firm in 1956, Buffett returned to Omaha.

In 1956, Buffett established Buffett Partnership Ltd., an investment partnership modeled in some respects on the partnership structure Graham had employed. Starting with $105,100 in capital—$100 of which was his own—Buffett attracted investments from family members and acquaintances in Omaha. Over the next several years, the partnership achieved returns that consistently exceeded market benchmarks. Buffett charged no management fee, instead taking 25 percent of profits above a 6 percent threshold, aligning his interests with those of his partners. By the early 1960s, the partnership had grown into a multimillion-dollar enterprise and Buffett had become a millionaire.

Berkshire Hathaway

In 1962, Buffett began purchasing shares of Berkshire Hathaway, then a struggling New England textile manufacturing company. He initially acquired the stock because it was trading below its intrinsic value—a classic value-investing proposition. By 1965, Buffett's partnership had accumulated enough shares to take control of the company. Buffett dissolved his investment partnerships in 1969 and distributed the assets to his partners, many of whom received shares of Berkshire Hathaway.

Buffett emerged as the company's chairman and majority shareholder in 1970, a position he would hold for more than five decades.[5] Although the textile operations eventually proved unviable and were shut down in 1985, Buffett used Berkshire Hathaway as a vehicle for a vast array of investments and acquisitions. The company evolved into a diversified holding company with interests in insurance, energy, railroads, manufacturing, retail, and financial services.

The insurance business, beginning with the 1967 acquisition of National Indemnity Company, became central to Berkshire's strategy. Insurance operations generated "float"—premiums collected before claims are paid—which Buffett deployed as a low-cost source of investment capital. Over time, Berkshire's insurance subsidiaries grew to include GEICO and General Re, among others.

In 1978, Charlie Munger, a fellow investor and long-time business associate, joined Buffett as vice chairman of Berkshire Hathaway. Munger became Buffett's most trusted intellectual partner, and the two developed a collaborative approach to capital allocation that blended Graham's quantitative value-investing framework with a greater emphasis on the qualitative characteristics of businesses—what Buffett described as buying "wonderful companies at fair prices" rather than "fair companies at wonderful prices."

Major Investments and Transactions

Throughout the 1980s and 1990s, Buffett made a series of major investments that came to define Berkshire Hathaway's portfolio. His concentrated position in The Coca-Cola Company, first acquired in 1988, became one of the most celebrated investments in financial history. Berkshire's portfolio also included substantial stakes in American Express, Wells Fargo, and The Washington Post Company, among others.

Buffett was an outspoken critic of financial derivatives, which he described in Berkshire's 2002 annual report as "financial weapons of mass destruction."[5] He warned that the proliferation of complex derivative instruments posed systemic risks to the financial system, a position that gained considerable attention in the wake of the 2007–2008 financial crisis.

During the financial crisis of 2008, Buffett made several high-profile investments that both provided capital to distressed firms and generated significant returns for Berkshire. In September 2008, Berkshire Hathaway invested $5 billion in Goldman Sachs in the form of perpetual preferred stock carrying a 10 percent dividend yield, along with warrants to purchase common stock.[6] Goldman Sachs subsequently redeemed Buffett's preferred stake in 2011, paying $5.65 billion—the original $5 billion investment plus a 10 percent premium.[7]

Buffett also participated in the financing of Dow Chemical Company's $19 billion acquisition of Rohm and Haas in 2008.[8] These crisis-era investments underscored Buffett's long-standing approach of deploying capital when others were fearful—a principle he has often summarized as being "greedy when others are fearful and fearful when others are greedy."

Berkshire's portfolio management has also included notable exits. The company sold positions in Johnson & Johnson and Procter & Gamble at various points as Buffett rebalanced the portfolio.[9]

Berkshire Hathaway's Growth

Under Buffett's leadership, Berkshire Hathaway grew from a failing textile company with a share price of approximately $19 in 1965 to one of the most valuable publicly traded companies in the world. The company's Class A shares became the highest-priced shares on the New York Stock Exchange, a distinction Buffett maintained deliberately by refusing to split the stock, arguing that a high share price attracted long-term investors. (Class B shares were eventually introduced in 1996 at a fraction of the Class A price to provide more accessible entry for smaller investors.)

Berkshire recorded its most profitable single quarter in its history during one period, reflecting the cumulative strength of its diversified operations and investment portfolio.[10]

Buffett's investment decisions continued to attract close attention from market participants. In the fourth quarter of 2025, during Buffett's final quarter as CEO, Berkshire Hathaway continued its pattern of selling more stocks than it bought, signaling a cautious posture amid elevated market valuations.[11] Value-focused investors have long tracked Berkshire's quarterly portfolio disclosures for insight into Buffett's assessment of market conditions.[12]

CEO Succession

At Berkshire Hathaway's annual shareholder meeting on May 3, 2025, Buffett requested that the board of directors appoint Greg Abel, who had been serving as vice chairman of non-insurance operations, to succeed him as chief executive officer by the end of 2025. Buffett indicated he would remain as chairman of the board.[13] The transition marked the end of Buffett's 55-year tenure as CEO, one of the longest such tenures in American corporate history. As of February 2026, Abel was preparing to deliver his first shareholder letter, an event closely watched by Wall Street analysts and Berkshire investors.[13]

Investment Philosophy

Buffett's investment philosophy, rooted in the value-investing principles he learned from Benjamin Graham at Columbia, centers on several core tenets: purchasing securities at prices below their intrinsic value, focusing on businesses with durable competitive advantages (which Buffett has termed "economic moats"), maintaining a long-term holding period, and exercising discipline in capital allocation. In his letters to Berkshire shareholders—published annually and read by investors worldwide—Buffett has consistently emphasized the importance of compound interest and the virtue of patience in wealth building.[14]

He has also articulated rules for managing risk, particularly for individuals approaching or in retirement, emphasizing the preservation of capital and the avoidance of speculation.[15]

The "Buffett Indicator," a ratio comparing total U.S. stock market capitalization to gross domestic product, has become a tool used by analysts to gauge whether the market is overvalued or undervalued. As of early 2026, the indicator was at elevated levels, prompting discussion among market commentators about potential risks to equity markets.[16]

Salomon Brothers

One notable chapter in Buffett's career involved his role at Salomon Brothers, the Wall Street investment bank. Berkshire Hathaway had been a major shareholder of Salomon, and when a Treasury bond bidding scandal erupted in 1991, Buffett stepped in as interim chairman to restore the firm's credibility with regulators and clients. John Gutfreund, Salomon's CEO, resigned amid the scandal.[17] Buffett's willingness to intervene personally and his dealings with the U.S. Treasury Department were credited with preventing the firm's collapse and preserving confidence in the government bond market.

Personal Life

Buffett has been known for maintaining a lifestyle characterized by frugality relative to his wealth. He has lived in the same house in Omaha, Nebraska, that he purchased in 1958, and he is known for his preference for simple pleasures, including Cherry Coca-Cola and meals from local Omaha restaurants.

Buffett married Susan Thompson in 1952. The couple had three children. Susan Buffett moved to San Francisco in 1977 to pursue a career in music and public service, though the couple remained married. Before her departure, Susan introduced Buffett to Astrid Menks, who became his companion. Following Susan's death in 2004, Buffett married Astrid Menks in 2006.

On the topic of taxation, Buffett has publicly stated that Berkshire Hathaway is among the largest corporate taxpayers in the United States. In early 2026, Buffett noted that if approximately 800 companies paid the Internal Revenue Service at the same rate as Berkshire, no individual American would owe a "dime" in federal taxes, including Social Security taxes.[18]

Recognition

Buffett has received numerous awards and honors over the course of his career. In 2011, he was awarded the Presidential Medal of Freedom by President Barack Obama, the highest civilian honor in the United States.

Global media outlets have long referred to Buffett as the "Oracle of Omaha" and the "Sage of Omaha," reflecting his reputation for prescient investment decisions and his willingness to share his thinking publicly through annual shareholder letters, interviews, and the Berkshire Hathaway annual meeting in Omaha—an event that regularly attracts tens of thousands of attendees and has been described as the "Woodstock of Capitalism."

Forbes has consistently ranked Buffett among the wealthiest individuals in the world. He was ranked as the richest person in the world by Forbes in 2008.[19] As of January 2026, Forbes estimated his net worth at approximately $148.9 billion, ranking him the ninth-richest individual globally.

Buffett's annual letters to Berkshire Hathaway shareholders are considered essential reading in the investment community. The letters, which Buffett has written every year since taking control of the company, combine financial reporting with philosophical reflections on investing, business management, and economic conditions. They are archived and made freely available on the Berkshire Hathaway website.

Legacy

Buffett's influence on the field of investing extends well beyond his personal financial returns. His articulation and practice of value investing—buying undervalued securities in companies with strong fundamentals and holding them for the long term—helped popularize an approach that had been largely academic before Buffett demonstrated its practical power on a massive scale. His partnership with Charlie Munger broadened the value-investing framework to incorporate qualitative assessments of business quality, management integrity, and competitive positioning.

Through his annual shareholder letters and public appearances, Buffett has served as an educator to generations of investors. His emphasis on rational thinking, intellectual honesty about mistakes, and the discipline of operating within one's "circle of competence" has influenced investment professionals and individual investors alike.

Buffett's philanthropic commitments represent one of the largest charitable pledges in history. In 2006, he announced that he would gradually give away the bulk of his Berkshire Hathaway shares to philanthropic foundations, with the largest portion directed to the Bill & Melinda Gates Foundation. In 2010, Buffett co-founded The Giving Pledge with Bill Gates and Melinda French Gates, an initiative in which billionaires commit to donating the majority of their wealth to philanthropy during their lifetimes or in their wills. As of 2026, more than 200 individuals and couples from around the world had signed the pledge.

The succession to Greg Abel as CEO of Berkshire Hathaway, announced in May 2025, marked the beginning of a new era for the company while Buffett retained the chairman's role. The transition was closely watched as a test of whether the corporate culture and investment discipline Buffett built over more than half a century could endure beyond his direct management.[13]

Buffett's influence on corporate governance, capital allocation, and the role of long-term thinking in business has left a mark on American capitalism that extends far beyond the performance of any single investment portfolio.

References

  1. ↑ "Warren Buffett Timeline".About.com.http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm.Retrieved 2026-02-23.
  2. ↑ "Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching.".Barron's.2026-02-23.https://www.barrons.com/articles/berkshire-ceo-abel-warren-buffett-055d5469?gaa_at=eafs&gaa_n=AWEtsqdZRjPxwQs8DhOsiFJbcgwydvnohsGhshA3dzp3krv_aIHgcMrJjTwK&gaa_ts=699cf54b&gaa_sig=ztwxZqwZnePFGNvkiB7CVWZSIAySnLLLm4TwyUTlOrIsK-Ndx8s00DFYlru6YXRC5aNk742-IEiD0H3LSHoEYw%3D%3D.Retrieved 2026-02-23.
  3. ↑ "Warren Buffett Timeline".About.com.http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm.Retrieved 2026-02-23.
  4. ↑ "Warren Buffett Timeline".About.com.http://beginnersinvest.about.com/cs/warrenbuffett/a/aawarrentimeln.htm.Retrieved 2026-02-23.
  5. ↑ 5.0 5.1 "Berkshire Hathaway 2002 Annual Report – Chairman's Letter".Berkshire Hathaway.http://www.berkshirehathaway.com/letters/2002pdf.pdf.Retrieved 2026-02-23.
  6. ↑ "Berkshire Hathaway Invests in Goldman Sachs".Goldman Sachs.https://web.archive.org/web/20081220053032/http://www2.goldmansachs.com/our-firm/press/press-releases/current/berkshire-hathaway-invest.html.Retrieved 2026-02-23.
  7. ↑ "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 2026-02-23.
  8. ↑ "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 2026-02-23.
  9. ↑ "Berkshire Sells Johnson & Johnson, Procter & Gamble".Financial Express.http://www.financialexpress.com/news/berkshire-sells-johnson-&-johnson-procter-&-gamble/425035/.Retrieved 2026-02-23.
  10. ↑ "Warren Buffett's Firm Just Made the Most Money Ever in a Single Quarter".Quartz.http://qz.com/244132/warren-buffetts-firm-just-made-the-most-money-ever-in-a-single-quarter/.Retrieved 2026-02-23.
  11. ↑ "14 Best Warren Buffett Dividend Stocks to Buy".Insider Monkey.2026-02-22.https://www.insidermonkey.com/blog/14-best-warren-buffett-dividend-stocks-to-buy-1700425/.Retrieved 2026-02-23.
  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 2026-02-23.
  13. ↑ 13.0 13.1 13.2 "Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching.".Barron's.2026-02-23.https://www.barrons.com/articles/berkshire-ceo-abel-warren-buffett-055d5469?gaa_at=eafs&gaa_n=AWEtsqdZRjPxwQs8DhOsiFJbcgwydvnohsGhshA3dzp3krv_aIHgcMrJjTwK&gaa_ts=699cf54b&gaa_sig=ztwxZqwZnePFGNvkiB7CVWZSIAySnLLLm4TwyUTlOrIsK-Ndx8s00DFYlru6YXRC5aNk742-IEiD0H3LSHoEYw%3D%3D.Retrieved 2026-02-23.
  14. ↑ "Discover Warren Buffett's 2 Wealth-Building Habits and How Compound Interest Amplified His Success".Investopedia.2026-02-21.https://www.investopedia.com/discover-warren-buffett-s-2-wealth-building-habits-and-how-compound-interest-amplified-his-success-11910745.Retrieved 2026-02-23.
  15. ↑ "Warren Buffett's 3 Rules for Protecting Your Retirement Savings After 50".Money.2026-02-20.https://money.com/warren-buffett-retirement-savings-rules-after-50/.Retrieved 2026-02-23.
  16. ↑ "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 2026-02-23.
  17. ↑ "John Gutfreund".Duke University Fuqua School of Business.http://mbaa.fuqua.duke.edu/ldi/press_johngutfreund.html.Retrieved 2026-02-23.
  18. ↑ "Warren Buffett Says You Wouldn't Owe A 'Dime' In Federal Taxes If 800 Companies Paid The IRS Like Berkshire".Yahoo Finance.2026-02-21.https://finance.yahoo.com/news/warren-buffett-says-wouldnt-owe-170106978.html.Retrieved 2026-02-23.
  19. ↑ "Buffett tops Forbes rich list".BBC News.2008-03-06.http://news.bbc.co.uk/2/hi/business/7280569.stm.Retrieved 2026-02-23.

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