Warren Buffett ends legendary run at Berkshire Hathaway (Img: X)
New delhi: Legendary investor Warren Buffet is finally decided to hang up his boots. Berkshire Hathway, the company that he founded in 1965 and is today worth more than Rs 95 lakh crore( One trillion dollars) informed shareholders on Thursady that he is stepping as Chairman.
Buffet epitomised long term value investing.Some of his famous investments were in Apple, where his 36 billion dollars invested over two years turned into 185 billion dollars. Likewise, in 1987, after a stock market crash, Buffet acquired nearly 7 per cent of stock in the Coca-Cola company for about 1.3 billion dollars. That is worth more than 30 billion dollars today, but that is not all-- Buffet has recovered his original investment dozens of times over in dividend payouts in the 40 years that he has held the stock.
Ironically, Buffet only drank Pepsi for 50 years, till Cherry Coke converted him. Buffent believed in long term investment, in companies he considered core to America. Like American Express, in which his 300 million dollars original bet has appreciated to over 50 billion dollars, though he has not cashed in a single share.Investors in Berkshire Hathway followed the same ploy-- and have been rewarded handsomely.
Buffet delivered nearly double the return of the S&P 500 index over more than a half a century-- a record unmatched in investing history. That is why people--including millionaires and even dillionaires-- paid millions of dollars for a chance to have a meal with him. Buffet auctioned this every year to raise funds for charity.
