What is Berkshire Hathaway?

Berkshire Hathaway was founded in 1839 as a textile mill in Massachusetts. However, it wasn’t until Warren Buffett took the reins in 1965 that the company began its transformation into the conglomerate we know today. Buffett’s value investing approach, which focuses on buying undervalued companies with strong fundamentals, has led to impressive returns for Berkshire Hathaway shareholders.

Warren Buffett’s Investment Strategies

So, what makes Warren Buffett’s investment approach so successful? Here are some key takeaways:

• Value Investing: Buffett looks for companies with strong fundamentals that are undervalued by the market. He believes in buying quality companies at a discount and holding them for the long term.
• Long-Term Focus: Buffett has a famously long-term perspective, often holding onto companies for decades. This approach allows him to ride out market fluctuations and capture the full potential of his investments.
• Diversification: Berkshire Hathaway’s portfolio is incredibly diverse, with investments in industries ranging from insurance and retail to manufacturing and technology.
• Mr. Market: Buffett has often spoken about the importance of treating the market like a business partner, rather than an adversary. He believes in taking advantage of market volatility to buy quality companies at discounted prices.

Berkshire Hathaway’s Portfolio

Berkshire Hathaway’s portfolio is a veritable who’s who of American business. Some of the company’s most notable holdings include:

• Coca-Cola: Berkshire Hathaway owns a staggering 9.3% stake in the iconic beverage company.
• Wells Fargo: Berkshire was once a major shareholder but sold its remaining stake in early 2022, ending a three-decade relationship.
• American Express: Berkshire Hathaway owns a significant stake in the credit card company, which has been a longtime favorite of Buffett’s.
• Geico: Berkshire Hathaway acquired the insurance company in 1996 and has since grown it into one of the largest auto insurers in the United States.

The 2026 Succession: Greg Abel Becomes CEO

The biggest event in Berkshire’s history since Buffett took over happened on January 1, 2026, when Greg Abel became chief executive. Buffett announced the handoff at the May 2025 annual meeting, and the board approved it unanimously. Buffett remains chairman of the board and the company’s largest shareholder, and he told shareholders he will keep writing to them in his annual letters. Abel, a Berkshire executive for more than 25 years, kicked off his tenure with an 18-page shareholder letter in March 2026 laying out the plan: the decentralized model stays, business heads keep their autonomy, and Abel takes charge of allocating capital, consulting with Buffett along the way. Insurance remains under longtime Berkshire veteran Ajit Jain, and Ted Weschler continues managing about 6 percent of the stock portfolio.

The early numbers under Abel are striking. He inherited a cash pile of about $373 billion, built up over 14 straight quarters of selling more stock than Berkshire bought. In the second quarter of 2026 Berkshire became a net buyer of stocks for the first time in more than three years, alongside $4.5 billion of share buybacks, bringing cash to about $365 billion by the end of June 2026. As of mid-2026 the largest stock positions were Apple at about $66 billion, American Express at about $51 billion, and Alphabet at about $38 billion, a position Berkshire enlarged by 83 percent in the second quarter. Buffett himself told CNBC the Alphabet investment was his idea. Coca-Cola and Bank of America round out the top five.

What Can Investors Learn from Berkshire Hathaway?

While we can’t all be Warren Buffett, there are certainly lessons to be learned from his approach to investing. Here are a few takeaways:

• Be Patient: Investing is a long-term game. Avoid getting caught up in short-term market fluctuations and focus on building wealth over the long haul.
• Do Your Research: Buffett is famous for his meticulous research and due diligence. Take the time to understand the companies you’re investing in and make informed decisions.
• Diversify: Spread your investments across different asset classes and industries to minimize risk and maximize returns.
• Think Like a Business Owner: Treat your investments like businesses, rather than just stocks. Focus on the underlying fundamentals and competitive advantages that will drive long-term success.

Key Members of Berkshire Hathaway

• Warren Buffett: chairman of the board and largest shareholder since stepping down as CEO.
• Charlie Munger (1924 to 2023): Buffett’s partner and vice chairman for more than four decades, and the architect of much of Berkshire’s philosophy.
• Ajit Jain
• Greg Abel: chief executive since January 1, 2026, after more than 25 years at Berkshire.

How to Invest Like Berkshire Without Buying BRK

Most investors will never buy a share of Berkshire, and they do not need to. The replicable part of the strategy is behavioral, not financial. Hold a low-cost stock index fund through the decades, add money on a schedule, and let compounding do what it did for Buffett: his fortune is overwhelmingly the product of returns compounding over 60 years, not of one brilliant trade. The concentrated part of Berkshire’s stock portfolio is a professional operation with research staff, insurance float, and tax advantages you do not have, so do not copy the 13F line by line. Copy the patience instead. Buffett’s own rule for the lay investor has long been that most people should simply buy an S&P 500 index fund and get on with their lives. That advice survived the succession intact.

Berkshire Hathaway is a testament to the power of value investing and long-term thinking. By following Warren Buffett’s investment strategies and adopting a patient, informed approach to investing, individuals can build wealth and achieve financial independence.

Whether you’re a seasoned investor or just starting out, there’s much to be learned from the Oracle of Omaha and his incredible track record of success.