Berkshire Hathaway CEO History: Warren Buffet to Greg Abel

BERKSHIRE HATHAWAY CEO HISTORY: WARREN BUFFET TO GREG ABEL

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  • 1962: Warren Buffett begins buying Berkshire Hathaway shares at $7.50 each
  • 1965: Buffett gains control of Berkshire Hathaway, removes chairman Seabury Stanton
  • 1967: Company issues its only dividend (10 cents per share) & purchases National Indemnity insurance for $8.6M,
  • 1973: Invests in Washington Post Company, entering the media sector
  • 1976: Makes initial $4M investment in GEICO
  • 1983: Acquires Nebraska Furniture Mart for $60M
  • 1988: Purchases 7% stake in Coca-Cola for $1.2B
  • 1996: Completes full acquisition of GEICO
  • 1998: Merges with General Re & purchases Executive Jet (later NetJets)
  • 2010: Executes largest acquisition to date: Burlington Northern Santa Fe Railroad for $44B
  • 2013: Partners with 3G Capital to acquire H.J. Heinz for $28B
  • 2016: Buys Precision Castparts for $37B
  • 2020: Invests $10B in Dominion Energy's natural gas assets
  • 2021: Class A shares reach $415,000 & Greg Abel confirmed as future CEO

WARREN BUFFETT TAKEOVER

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In 1962, Warren Buffett began purchasing Berkshire Hathaway shares, then trading at $7.50 per share.

At this point, the company operated textile mills in New Bedford, Massachusetts.

They were struggling against cheaper foreign imports.

Through the steady accumulation of shares, Buffett gained a controlling interest in Berkshire Hathaway in 1965.

He fired then-chairman Seabury Stanton over a price dispute, marking his first and later-regretted hostile takeover.

Buffett continued the textile operations despite their declining prospects.

EARLY EXPANSION OF BERKSHIRE HATHAWAY

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In 1967, Berkshire Hathaway issued a 10-cent dividend.

Warren Buffett later calls this his only dividend declaration, preferring to reinvest profits into new businesses.

That same year, he expanded beyond textiles by acquiring National Indemnity insurance company for $8.6 million—shifting into insurance for the first time.

He later buys National Fire and Marine Insurance as well.

GEICO & WASHINGTON POST

Source: Geico

Buffet decided to expand into media in 1973 through a calculated investment in the Washington Post Company, forming a partnership.

This move would prove instrumental to Berkshire's diversification strategy.

Three years later, Berkshire initiated its involvement with GEICO through a $4 million investment; twenty years later, it would have full ownership in 1996.

NEBRASKA FURNITURE MART

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In 1983, the company purchased Nebraska Furniture Mart for $60 million, adding retail operations to its portfolio.

Coca-Cola

Source: The Coca-Cola Company

Five years later, Buffett made one of its most renowned investments, acquiring a 7% stake in Coca-Cola for $1.2 billion.

GENERAL RE & EXECUTIVE JET

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By 1998, Berkshire Hathaway had made two huge acquisitions.

The merger with General Re doubled Berkshire's insurance capacity, while the purchase of Executive Jet (later renamed NetJets) established the company's presence in private aviation services.

These purchases helped position Berkshire Hathaway as a diverse holding company, far removed from its textile-manufacturing origins.

BURLINGTON NORTHERN SANTA FE RAILROAD

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In 2010, Warren Buffett executed his largest-ever purchase by acquiring Burlington Northern Santa Fe Railroad.

This $44 billion investment secured Berkshire's position in America's rail transport infrastructure.

HEINZ

Source: Heinz

Berkshire partnered with 3G Capital to acquire H.J. Heinz Company for $28 billion in 2013.

PRECISION CASTPARTS

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The 2016 purchase of Precision Castparts for $37 billion strengthened Berkshire's industrial manufacturing portfolio, specifically in aerospace components and industrial power generation.

DOMINION ENERGY

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During the COVID-19 pandemic in 2020, Berkshire made a strategic $10 billion investment in Dominion Energy's natural gas transmission assets, expanding its energy infrastructure holdings.

$415,000

Warren Buffet Berkshire Hathaway CEO
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By 2021, Berkshire's Class A shares reached $415,000—it was proof of Buffett's investment philosophy delivering returns exceeding 620% over two decades.

GREG ABEL

portrait of Greg Abel
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Berkshire Hathaway's succession plan centers on Greg Abel, who will become CEO after Warren Buffett steps down.

The company confirmed this decision in 2021.

Abel's connection to Berkshire began in 1999 when the company acquired MidAmerican Energy, where he served as a key executive.

He now oversees all non-insurance operations as vice chairman, managing businesses that range from railroads to retail chains.

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