A 5 million percent return in 60 years leaves Warren Buffett’s legacy unmatched

The investing world's northbound prima is opening to dim.

Warren Buffett has handed implicit the CEO reins to Greg Abel aft a six-decade tally that turned an unremarkable textile institution into 1 of the astir almighty compounding engines successful marketplace history, leaving investors grappling with however singular that accomplishment truly was, adjacent arsenic helium remains president of Berkshire Hathaway.

When Buffett took power of Berkshire successful the mid-1960s, its shares traded astir $19. By the extremity of 2025, a azygous Class A stock was worthy implicit $750,000.

From 1964 — the twelvemonth earlier Buffett took power of Berkshire — to 2024, the one-of-a-kind conglomerate delivered a compounded yearly summation of 19.9%, astir treble the S&P 500's 10.4%, resulting successful an wide instrumentality of much than 5.5 cardinal percent, according to the company's latest yearly report. The shares added different 10% to that instrumentality successful 2025.

The grounds was built connected an unusually spare formula: usage security interval arsenic a root of low-cost capital, bargain businesses with durable currency flows and let clip to bash astir of the work. That attack produced long-held stakes successful companies specified arsenic Coca-Cola and American Express, portion Berkshire expanded into railroads, utilities and manufacturing done wholly owned subsidiaries.

"If it was that casual to bash again, idiosyncratic would beryllium doing it," Bill Stone, main concern serviceman astatine Glenview Trust Company and a Berkshire shareholder, said. "You deliberation astir the duo that having Charlie Munger arsenic your partner, it's conscionable hard to ideate that coming unneurotic again anytime soon."

As Buffett relinquishes the helm, investors are progressively focused connected what disappears with him. Seth Klarman, laminitis of the Baupost Group, called Buffett "an American relation model" and said his status represents much than a enactment transition.

"The satellite of investing volition beryllium antithetic without Warren Buffett astatine the helm of Berkshire," Klarman said successful a tribute.

'Going Quiet'

Buffett has said he's "going quiet" arsenic helium steps back, signaling a reduced nationalist beingness adjacent arsenic helium remains chairman. Abel volition assume work for Berkshire's yearly shareholder letters, a contented Buffett began successful 1965 that became indispensable speechmaking connected Wall Street for its plainspoken lessons connected markets, absorption and superior allocation. Buffett volition support penning a Thanksgiving message, however.

The yearly letters were 1 pillar of Buffett's influence. The different was Berkshire's yearly shareholder meeting. Often dubbed "Woodstock for Capitalists," the gathering drew tens of thousands of investors to Omaha, Nebraska, each twelvemonth for hours of unscripted Q&A. The lawsuit cemented Buffett's relation not conscionable arsenic a steward of capital, but arsenic a dependable nationalist dependable investors trusted to enactment marketplace upheaval into perspective.

Buffett besides rejected galore Wall Street conventions. Berkshire ne'er divided its stock, discouraging speculation and cultivating a shareholder basal oriented toward decades alternatively than quarters. The institution declined to contented net guidance and gave operating managers wide autonomy, portion superior allocation decisions remained centralized successful Omaha.

"Warren, arsenic chairman, volition beryllium an advisor to Greg, a taste anchor, and a existent agelong word thinker," said Ann Winblad, managing manager astatine Hummer Winblad Venture Partners and longtime Berkshire shareholder, connected CNBC's "The Exchange." "Will the institution fundamentally alteration successful its strategies? No. ..The civilization of Berkshire Hathaway, which is what I've invested in, which is patient, agelong term, cautious and decisive investing, volition astir apt inactive remain."

The institution held a grounds $381.6 cardinal successful currency astatine the extremity of September, underscoring some its fiscal firepower and Buffett's caution successful a richly valued market. Berkshire has besides been a nett seller of equities for 12 consecutive quarters, a uncommon and sustained retreat that reflects constricted opportunities astatine its scale.

Shareholder attraction is shifting to a little settled portion of the succession plan: the destiny of its $300 cardinal equity portfolio. With nary evident successor possessing a comparable grounds successful nationalist equities, immoderate analysts accidental Berkshire whitethorn yet standard backmost progressive banal selection, peculiarly fixed the size and attraction of the portfolio.

Buffett has besides repeatedly cautioned shareholders against mistaking volatility for failure.

"Our banal terms volition determination capriciously, occasionally falling 50% oregon truthful arsenic has happened 3 times successful 60 years nether contiguous management," helium wrote. "Don't despair; America volition travel backmost and truthful volition Berkshire shares."