Warren Buffett turned 94 on Friday, and his investment masterpiece, Berkshire Hathaway, became the first non-technology company to top a $1 trillion market capitalization. This milestone underscores the enduring success of Buffett’s disciplined and insightful investment strategy.
Berkshire’s Incredible Growth
Buffett took Berkshire Hathaway from a failing New England textile company to a global conglomerate with businesses like Geico and BNSF Railway. The company’s Class A shares have now surpassed $700,000 each. Since Buffett took the helm in 1965, Berkshire shares have delivered a staggering 4,384,748% return, far outpacing the S&P 500’s 31,223% gain.
The Power of Patience
Howard Marks, co-founder of Oaktree Capital and a friend of Buffett, attributes Buffett’s success to “a well-thought-out strategy prosecuted for seven decades with discipline, consistency, and unusual insight.” Marks emphasizes that Buffett’s record is “a testament to the power of compounding at a very high rate for a very long period, uninterrupted.”
Buffett’s Enduring Influence
Even at 94, Buffett remains CEO of Berkshire, though Greg Abel, his designated successor, has taken on many responsibilities. Buffett’s approach to investing—marked by patience, value-seeking, and a focus on long-term growth—continues to inspire investors. Marks noted, “He says that he skips to work in the morning. He tackles investing with gusto and joy.”