Warren Buffett is consistently one of the wealthiest people in the world, coming in with a net worth of approximately $88.5 billion, as of January 13, 2021. Buffett keeps his net worth predominantly in Berkshire Hathaway and Berkshire Hathaway stock, the investment company he founded. Berkshire Hathaway acts as his investment vehicle and invests in such things as equities, real estate, and renewable energy.
However, Buffett came from modest beginnings, which has shaped the way he views money management. He was born in Omaha, Nebraska, in 1930, and the town has been his home ever since. Working as an investment salesman, he had a knack for investing and eventually built Berkshire Hathaway into the company it is today. He still lives in the home he purchased in 1958 for $31,500.
- Billionaire Warren Buffett's wealth is held almost entirely in his Berkshire Hathaway investment portfolio.
- Berkshire Hathaway is a holding company comprised of a multitude of companies and subsidiaries, including GEICO Insurance, Duracell Batteries, and See's Candies.
- Berkshire Hathaway's investment portfolio includes such well-known companies as Apple Inc., Bank of America, and Coca-Cola Company.
- Buffett's value approach to investing has enabled him to grow Berkshire Hathaway's share price exponentially over the decades.
- In 2006, Buffett pledged to give away over 99% of his wealth to charitable causes.
The majority of Warren Buffett’s wealth is tied up in Berkshire Hathaway’s investment portfolio. In recent years Buffett has been gifting a considerable amount of his shares to charity. His most recent 13-D filings show his stake in class A shares at 259,394 shares and his class B shares at 65,129. As of January 13, 2021, Berkshire Hathaway Class A stock (BRK-A) traded at $353,194, and Berkshire Hathaway Class B (BRK-B) stock traded at $234.51.
Buffett's net worth was a mere $1 million when he was in his 30s, consisting largely of Berkshire Hathaway stock. Through smart institutional investments, he increased the company's stock from $7.60 in the 1960s to today's level. This exponential increase in share price is the main driver of Buffett's increase in net worth over the past decades.
Warren Buffett purchased his first stock at age 11—six shares at $38 each in a company called Cities Service Preferred—which he sold a few years later for $40 per share.
In addition to acting as chairman and chief executive officer (CEO) of Berkshire Hathaway and being one of its largest shareholders, Buffett uses the company as his main investment vehicle, conducting many of his equity sales and purchases as business transactions. This portfolio makes up the lion's share of his equity investments.
The investor is well-known for his income and value approaches to investing, and his portfolio reflects his ideology. As of January 13, 2021, the Berkshire Hathaway portfolio had a value of approximately $270 billion. The portfolio’s greatest weights were in DaVita (DVA), Kraft Heinz (KHC), and the American Express Company (AXP). Combined, these three companies totaled approximately 77% of the equity holdings.
As a percentage of equity investments, Berkshire Hathaway is most heavily invested in the financial sector, in the technology sector, and in the consumer defensive sector. Other sectors in the portfolio include industrials, consumer cyclical, health care, energy, communication services, basic materials, and real estate.
As of Jan. 13, 2021, Berkshire Hathaway’s portfolio is substantially in the financial sector. Berkshire has 13 financial holdings at the following portfolio weights:
|Berkshire Hathaway Financial Sector Holdings|
|Bank of America Corp||11.9%|
|American Express Company||18.8%|
|Wells Fargo & Co||3.1%|
|Bank of New York Mellon Corp||8.4%|
|PNC Financial Services Group||0.5%|
|M&T Bank Corporation||2.3%|
In addition to equities, Berkshire Hathaway is also well known as a holding company. The company has 63 subsidiaries, with a focus on insurance and real estate. Some of its subsidiaries include GEICO Auto Insurance, Clayton Homes, and See's Candies.
Forbes. "The World's Real-Time Billionaires." Accessed Aug. 13, 2020.
Giving Pledge. "Warren Buffett." Accessed Aug. 13, 2020.
Securities and Exchange Commission. "Schedule 13-D/A: Berkshire Hathaway Inc." Accessed Jan. 13, 2021.
Yahoo Finance. "Berkshire Hathaway Inc. (BRK-A)." Accessed Jan. 13, 2021.
Yahoo Finance. "Berkshire Hathaway Inc. (BRK-B)." Accessed Jan. 13, 2021.
Securities and Exchange Commission. "Form 13F: Berkshire Hathaway Inc." Accessed Jan. 13, 2021.