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Warren Buffett announced on Saturday that he will step down as CEO of Berkshire Hathaway at the end of 2025. The announcement came as a shock to many, especially as the Oracle of Omaha had previously announced that he had no intention of retiring.
Shortly after Buffet’s retirement announcement, Perplexity AI broke down the top investments that helped the 94-year-old become one of the most respected investors of all time.
Most profitable investments by Warren Buffet:
1) GEICO:
Buffett began investing in GEICO at the age of 21 after visiting the company’s headquarters and being impressed by its direct-to-consumer model, which cut out the middleman. In 1976, Buffett made a second round of investment, buying around 1 million shares at a price of just $2. Buffett continued to increase his stake in the company until Berkshire Hathaway finally acquired the company in 1996.
2) See’s Candies (1972):
Buffet was initially reluctant to invest in See’s because of the price, but eventually agreed to buy the company at the insistence of Charlie Munger. Berkshire Hathaway acquired See’s for $25 and the company has since generated over $1 billion in profits without requiring significant investment.
3) Coca-Cola (1988):
Buffet invested $1.3 billion in Coca-Cola shares in 1988, believing in the company’s ‘economic moats’ – its indispensable brand and global distribution network. That investment had grown about 20-fold by 2023, while paying out billions in dividends over the years.
“I should have been buying it along… It was in 1936 I started drinking the stuff.” Buffet once said about his Coke investment.
4) American Express (1964):
Buffet had first invested in American Express in 1964 after the company was defrauded and it stock had plunged during the ‘Salad Oil Scandal’. He later went back to investing in AmEx in 1990s and the company is currently among the ‘Big Four’ investments by Berkshire Hathaway with a total worth of over $30 billion.
5) Bank of America (2011):
After the 2008 financial crisis, Buffet spotted an opportunity while critics questioned the future of Bank of America. The Oracle of Omaha invested $5 billion in the bank and Berkshire Hathaway received preferred stock with an annual dividend of 6%. This investment had generated over $10 billion in returns for Berkshire by 2023.
6) BNSF Railway (2009):
Buffett acquired Burlington Northern Santa Fe Railway for $34 billion in 2009, which has since since went on to generate consistent profits for Berkshire and contributed billions in annual earnings.
7) Apple (2016):
After years of shying away from investing in tech companies, Buffett began investing in Apple in 2016. Berkshire initially bought around $1 billion of the stock, later increasing its position to $40 billion and eventually to $150 billion.
The investment in the iPhone maker turned out to be Buffet’s most profitable to date, in dollar terms.
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