BERKSHIRE HATHAWAY & WARREN BUFFETT’S MILLIONAIRES CLUB by Vintage Value Investing
In 1964, when Warren Buffett first took over Berkshire Hathaway, shares for the company cost only $19.
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Berkshire Hathaway stock trades for over $200,000!
There is a reason why Warren Buffett is regarded as the best investor of all time – he has grown Berkshire Hathaway’s book value by about 20% a year for the past 50 years!
$1,000 invested in Berkshire Hathaway in 1964 would be worth over $11.5 million today. This is, of course, remarkable. But what’s also remarkable is just how consistent Berkshire Hathaway’s rise has been throughout the years (if you had bought the stock and held on to it).
Here is a chart showing the value of $1,000 invested in Berkshire Hathaway today, depending on what year you could have invested in the company.
A $1,000 investment in 1965 would be worth about $11.5 million today.
A $1,000 investment in the 1970’s would be worth over $1 million today.
A $1,000 investment in the 1980’s would be worth $50,000 – $100,000 today.
A $1,000 investment in the 1990’s would be worth $5,000 – $10,000 today.
The result: Warren Buffett’s Millionaires Club, comprised of the investors who have bought Berkshire Hathaway stock over the years and have held it for long enough to have let Warren Buffett’s compounding magic take effect.
As the WSJ points out in its article Warren Buffett’s Millionaires Club: “Like Mr. Buffett, Berkshire shareholders are an unusual bunch.”
This is true. I saw it first-hand when I went to the Berkshire Hathaway Annual Shareholders Meeting in Omaha last May. Shareholders include everyone from finance professionals, lawyers, and doctors, to teachers, farmers, and truckers.
Members of Warren Buffett’s Millionaires Club should really thank Warren Buffett and Berkshire Hathaway every day.
Early Berkshire Hathaway stockholders have used shares to finance children’s educations, buy homes and put up collateral for loans. Hundreds of millions of dollars of stock already have gone to shareholders’ alma maters, cultural institutions and medical research.
One shareholder highlighted in the WSJ article drives a Hyundai that sports a sticker that reads: