How Warren Buffett, at 94, Continues to Propel Berkshire Hathaway to New Heights
By American billionaire Warren Buffett, who recently turned 94, still runs Berkshire Hathaway, and the company continues to perform well. Despite his age, Buffett has led the company to its highest value ever. This week, Berkshire Hathaway became the first large non-technology company to reach a market value of over $1 trillion. Each share of its Class A stock now costs over $700,000.
Howard Marks, a well-known investor and friend of Buffett, credits Buffett's success to his great skill in investing, ability to adapt, and strict management style. Marks, who founded Oaktree Capital Management, believes Buffett's achievements result from a well-planned strategy executed with discipline and consistency for more than seventy years. Marks emphasizes that while discipline and consistency are important, it’s Buffett’s special talent for spotting opportunities and understanding markets that makes him the greatest investor. Without this unique skill, Buffett’s huge successes would not have happened.
Marks also highlights Buffett’s long experience in investing, showing how this has helped him succeed. Buffett has always worked very hard, which has been key to his success over the long term. In the 1960s, Buffett used an investment group he led to buy Berkshire Hathaway, a failing textile company at that time. Over the years, Buffett turned Berkshire Hathaway into a group of different businesses like Geico insurance and BNSF Railway, moving the company far from its textile roots. Today, the company’s stock portfolio is worth over $300 billion, and it holds a large cash reserve of $277 billion, showing its financial strength and growth under Buffett’s leadership.
According to Forbes, Buffett’s wealth now exceeds $148 billion. For many years, investors have admired Buffett's smart investment choices. His investment in Coca-Cola in the late 1980s showed his method of patiently investing in companies with strong, lasting brands. During the 2008 financial crisis, Buffett showed his quick thinking by investing in Goldman Sachs, a smart move in a tough market. More recently, his large investment in Apple showed his ability to adapt, using his investment ideas in a modern tech company.
Earlier this month, Buffett sold half of his large stake in Apple, indicating a change in his investment strategy. Even though Apple is considered a growth stock, Buffett believes all investing is about value. He sees investing as putting out money expecting to get more back later, which reflects his belief that value principles apply to any kind of stock.
Buffett, who remains chairman and CEO of Berkshire Hathaway, has started to give more responsibilities to Greg Abel, the vice chairman of Berkshire’s non-insurance businesses and Buffett’s chosen successor. While Buffett retains the top positions, he has delegated many tasks to Abel, who now actively manages the company’s many businesses. Earlier this year, Buffett stated that Abel, who is 62, will make all investment decisions when Buffett is no longer able to lead. This ensures the company’s strategy and investment style will continue without disruption.