Would You Have Bought Berkshire Hathaway in 1975? (2024)

FAQs

Would you have found Berkshire Hathaway in 1975? ›

Probably not, from the performance charts. If you had purchased US$1,000 worth of Berkshire Hathaway (BRK. A) stock in 1975, that position would be worth US$7.5 million today.

Berkshire Hathaway Stock: 1962 =$8 1972 =$80 1975=$38 (53%⬇️) S&P 500 ⬇️ only 14% b/w 1972-1975 Just in one year (1975 to 1976) ⬆️ $94 from $38 1982=$775 Today=$297060 (CAGR 20.26% for 57 years) Suppose someone who sold in 1975 coz of stock ⬇️ 53% or sold in 1972 coz of 10X.

Amid continuing plant closures and share repurchases, Buffett began aggressively acquiring Berkshire stock, allowing him to take control of the company in 1965.

When Buffett took control of Berkshire Hathaway in 1965, shares were valued at about $19. Today, Class A shares trade for around $459,800, which represents a mind-boggling return of 2,419,900%. That means $100 invested in 1965 would now be worth roughly $2.42 million.

I purchased BPL's first shares of Berkshire in December 1962, anticipating more closings and more repurchases. The stock was then selling for $7.50, a wide discount from per-share working capital of $10.25 and book value of $20.20.

Gold was the best-performing asset in the 1970s, spiking more than 22%. Other commodities, such as energy and raw materials, also outperformed, rising 15%. Will an investing strategy based on the '70s work again?

Berkshire Hathaway

Berkshire Hathaway (BRK. B, $195.20), of which he is chairman and CEO, tops the list of the best S&P 500 stocks of the past 50 years, and it is the only one that does not pay a dividend.

Berkshire Hathaway is a large, diversified holding company led by renowned investor Warren Buffett that invests in the insurance, private equity, real estate, food, apparel, and utilities sectors. Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors.

What year did Berkshire Hathaway split? ›

Second, in addition to Berkshire Hathaway issuing lower-priced Class B shares in 1996, it also split its B shares 50-for-1 in 2010 as part of its acquisition of Burlington Northern. Thus, Berkshire's Class B shares represent a 1,500:1 stock split relative to the Class A shares. College Park, Md.

There are lots of factors that can contribute to a high stock price. One of the biggest reasons why BRK. A is so expensive is because CEO Warren Buffett has decided against a stock split. A stock split is when a company splits its existing stock to create more shares, often resulting in a lower share price.

In 1962, Warren Buffett began buying stock in Berkshire Hathaway after noticing it was statistically undervalued. Buffett bought the stock with the idea that as Berkshire closed textile mills and freed capital, there would be a tender offer at some point and they could sell the stock for a profit.

Buffett isn't required to disclose his personal holdings. The one stock he definitely owns, of course, is Berkshire Hathaway. Buffett is Berkshire's largest shareholder. He currently owns 15.6% of the company and controls 31.5% of the voting interest.

The top three individual shareholders are Warren Buffett, Susan Buffett, and Ronald Olson. The company's top three institutional shareholders are Vanguard, BlackRock, and State Street.

The closing price for Berkshire Hathaway (BRK. A) in 1980 was $425, on December 30, 1980. It was up 46.6% for the year. The latest price is $610,500.

At yearend 1979, book value with equity holdings carried at market value was $335.85 per share.

Warren Buffett first took over the holding company Berkshire Hathaway in 1964. At the time, shares of Berkshire Hathaway were valued at just $19 a share.