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Here’s how a $100 investment in Berkshire Hathaway has grown since Buffett became CEO

Here’s the return for $100 invested in Berkshire Hathaway when Warren Buffett became CEO
Paul L.
Stocks

Summary

⚈ Warren Buffett is retiring after 50+ years as Berkshire Hathaway’s CEO.

⚈ A $100 investment in 1970 is now worth over $300,000.

⚈ Greg Abel will take over as CEO, inheriting a $347.7B cash reserve.

With Warren Buffett set to step down as CEO of Berkshire Hathaway (NYSE: BRK.A), his tenure, spanning more than five decades, has been defined by massive returns for shareholders.

Buffett assumed control of Berkshire Hathaway in 1970 and has since become the longest-serving CEO among all S&P 500 companies.  Remarkably, he has led the company for as long as the average current S&P 500 CEO has been alive.

Under Buffett’s leadership, an initial $100 investment in Berkshire in 1970 would now be worth over $330,000, thanks to a staggering gain of more than 330,000%.

BRK stock performance since Buffett became CEO. Source: TradingView/The Kobeissi Letter

The company’s stock continues to trade at record highs, closing the last trading session at $539.80, up nearly 2%. The stock has gained almost 20% year-to-date, outperforming many peers despite recent market volatility triggered by renewed trade tensions.

BRK YTD stock price chart. Source: Finbold

Berkshire Hathaway Q1 earnings

However, for the first three months of 2025, the company did report a 14.1% decline in first-quarter operating earnings, falling to $9.64 billion from $11.22 billion a year earlier. 

The drop was primarily due to weaker insurance underwriting results. Nevertheless, Berkshire ended the quarter with a record $347.7 billion in cash, up from $334.2 billion in the previous quarter, as it continued to scale back equity purchases.

Notably, the investment giant did not repurchase any shares during the quarter, with Buffett citing the challenge of finding investments that meet Berkshire’s strict valuation standards.

The growing cash reserve has fueled speculation among investors about potential acquisitions or strategic moves under new leadership. 

At the same time, some market watchers believe the cash buildup may be a defensive measure amid fears of a possible economic downturn. Indeed, amid the speculation, Buffett has weighed in on the current market status, especially with the trade tariffs, terming it a ‘big mistake’. 

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” he said.

Overall, as Buffett prepares to pass the baton to Vice Chairman Greg Abel, his designated successor since 2021, attention now shifts to how Berkshire Hathaway will perform under new leadership.

When Abel takes over as CEO, analysts expect him to preserve the company’s culture, even if he lacks Buffett’s iconic presence.

Featured image via Shutterstock

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