1. The Early Years & Entrepreneurial Roots (1930-1950)
Buffett displayed a natural aptitude for business and numbers from a very young age.
- Childhood Ventures: He started small businesses selling chewing gum, Coca-Cola bottles, and magazines door-to-door. He also operated a successful pinball machine business as a teenager.
- First Investment: At age11, he bought his first stock (Cities Service Preferred).
- Early Wealth: By the time he graduated high school, he had saved over $5000 (equivalent to over $60000 today) through paper routes and various ventures.
2. Mentorship & The Partnership Era (1951-1969)
This stage defined his investment philosophy, moving from academic theory to professional practice.
- The Graham Influence: Buffett studied under Benjamin Graham (“The Father of Value Investing”) at Columbia University. He adopted the “Cigar Butt” strategy—buying mediocre companies at such a low price that there was still one “free puff” left.
- Buffett Partnerships: In1956, he returned to Omaha and started his own investment partnerships. He delivered spectacular results, consistently beating the market.
- Acquiring Berkshire: In1962, he began buying shares of Berkshire Hathaway, a declining textile mill. He took full control in1965 after a dispute with the management.
3. Transition to Quality & Insurance (1970-1990)
Guided by Charlie Munger, Buffett shifted from “cheap” companies to “great” companies at fair prices.
- The Float Strategy: Buffett realized that insurance companies (like National Indemnity and GEICO) provided “float”—money paid in premiums that Berkshire could invest before claims were paid out.
- Iconic Acquisitions: He purchased See’s Candies in1972, which taught him the value of brand power and “moats.” In1988, he made his famous massive investment in Coca-Cola.
- End of Textiles: In1985, he finally shut down the original textile operations, completing Berkshire’s transformation into a holding company.
4. Global Conglomerate & “Elephant” Hunting (1991-2015)
As Berkshire grew, Buffett needed larger targets to move the needle on his massive capital base.
- Full Ownership: Berkshire moved from being a stock-picker to a business owner, acquiring companies like Dairy Queen, NetJets, and Fruit of the Loom.
- Infrastructure & Energy: He made massive bets on “old economy” essentials, notably the acquisition of BNSF Railway in2010.
- Crisis Leadership: During the2008 financial crisis, Buffett acted as a “lender of last resort,” providing capital to firms like Goldman Sachs and General Electric.
5. Modern Era & The Tech Pivot (2016-Present)
In recent years, Berkshire has adapted to the digital economy while preparing for a post-Buffett future.
- The Apple Era: Breaking his long-standing avoidance of technology stocks, Buffett began buying Apple in2016. It became Berkshire’s largest and most profitable stock holding.
- Global Diversification: He expanded into Japanese trading houses and increased stakes in energy (Occidental Petroleum).
- Succession Planning: With the passing of Charlie Munger in2023, the focus has shifted to Greg Abel, who is designated to succeed Buffett as CEO to lead the next generation.
Below is the financial performance of Warren Buffett’s career and Berkshire Hathaway by stage, highlighting revenue levels and historical returns.
1. The Partnership Era (1956-1969)
This was the period of Buffett’s highest percentage returns, as he managed a smaller pool of capital.
- Revenue/Capital: Started with $105100 in1956; ended with over $100million in1969.
- Annualized Return: Approximately 31.6%.
- Context: During this time, the Dow Jones Industrial Average returned only about9% annually. Buffett never had a single “down” year during the partnership.
2. Transition & Aggressive Growth (1970-1990)
This stage marks the transformation of Berkshire Hathaway from a textile mill into an insurance-driven investment engine.
- Revenue/Net Worth: In1970, Berkshire’s net worth was about $43million. By1990, it grew to $5.4billion.
- Annualized Return: Approximately 28% to 30%.
- Key Growth: The stock price rose from around $40 per share in1970 to over $7000 per share by the end of1990.
3. Large-Cap & Conglomerate Expansion (1991-2010)
As the capital base grew into the hundreds of billions, the “law of large numbers” made 30% returns impossible, but total revenue soared through massive acquisitions.
- Revenue Level: Revenue surpassed $100billion for the first time following the BNSF acquisition.
- Annualized Return: Approximately 15% to 20%.
- Key Event: The acquisition of BNSF Railway (2010) shifted Berkshire from being a stock-heavy portfolio to a diversified industrial giant.
4. The Mega-Cap & Technology Era (2011-Present)
Berkshire has become a massive cash-generating machine, often holding over $150billion in cash.
- Revenue/Assets: 2023 annual revenue reached $364.5billion. Total assets crossed $1trillion.
- Annualized Return: Approximately 10% to 12% (closely tracking the S&P500).
- Market Cap: In2024, Berkshire Hathaway became the first non-tech U.S. company to reach a $1trillion market capitalization.
Comparative Performance Table (Compound Annual Gain)
| Period | Berkshire Performance (Book Value/Market) | S&P 500 (With Dividends) |
| 1965-1984 | ~22.1% | ~10.0% |
| 1985-2004 | ~19.5% | ~13.2% |
| 2005-2023 | ~10.5% | ~9.8% |
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