A $100 Investment From 1965 in Berkshire Hathaway Would Be Worth $2.42 Million Today—Here's Why

When Warren Buffett assumed control of Berkshire Hathaway in 1965, few could have predicted the transformation that would unfold. What began as a struggling textile manufacturer in the United States would eventually become a global powerhouse and one of the most valuable companies on Earth. For investors who seized the opportunity early, the numbers tell an extraordinary story of compound wealth creation.

The Staggering Returns: Numbers That Defy Belief

The mathematics of long-term investing become almost surreal when examining Berkshire’s performance. In 1965, when Buffett took the helm, Class A shares traded at roughly $19 per share. Fast forward to today, and those same shares command approximately $459,800—a return exceeding 2,419,900%.

To put this in concrete terms: a $100 investment in Berkshire Hathaway stock during 1965 would be valued at approximately $2.42 million in today’s dollars. This dwarfs comparable returns from the S&P 500, which would have turned that same $100 investment into merely $22,400. While the broader US market index certainly delivered respectable gains, Berkshire’s outperformance remains nothing short of remarkable.

How Buffett Built an Empire

The journey from textile manufacturer to conglomerate titan followed a deliberate strategic path. Beginning in 1962, Buffett and his investment vehicle accumulated shares in the struggling company. By 1965, he had acquired complete control and began immediately steering the business toward higher-return industries.

The insurance sector became Buffett’s gateway to sustained growth. Unlike typical manufacturers, insurance operations generate premium cash flows that can be strategically deployed into stocks and bonds—a perfect vehicle for someone with Buffett’s stock-picking acumen. The company’s investment in GEICO during the 1970s exemplified this approach, eventually leading to a complete acquisition in 1996.

From there, Berkshire’s portfolio diversified dramatically. The company moved into publishing, banking, mortgage services, and energy. In 2009, during the depths of the Great Recession when confidence in the US economy had evaporated, Buffett made a bold $34 billion commitment to acquire Burlington Northern Santa Fe, North America’s largest freight railroad. Assuming an additional $10 billion in debt, this became Berkshire’s largest purchase ever—and a masterclass in contrarian investing.

A Portfolio Transformed Across Decades

Today’s Berkshire Hathaway operates across multiple sectors with a portfolio exceeding $313 billion in invested assets, supplemented by $109 billion in cash reserves. The company maintains substantial positions in traditional sectors like insurance and banking while modernizing through tech exposure.

The most striking example of this evolution involves Apple. Beginning in 2016, Berkshire initiated a significant stake in the consumer technology giant. This investment has appreciated so substantially that Apple now comprises 37% of Berkshire’s entire invested asset base—an enormous concentration that reflects both the strength of tech valuations and Buffett’s confidence in the company’s durability.

The Performance Gap: Berkshire Versus the Market

The historical performance differential speaks volumes about active management when executed at the highest levels. Between 1965 and 2021, Berkshire delivered compound annual returns exceeding 20%. Over that identical period, the S&P 500 managed only 10.5% average annual gains including dividends. This persistent gap of nearly 10 percentage points annually, compounded over nearly six decades, explains the vast wealth disparity between the two investment paths.

Even through volatile periods, Berkshire’s structural advantages proved durable. The company navigated the 2022 downturn more effectively than the broader US equity market, maintaining investor confidence through a challenging year for equities.

Structural Advantages That Compound Over Time

Several factors contributed to Berkshire’s exceptional trajectory. The company’s evolution from a single textile operation into a diversified holding company reduced risk while expanding opportunities. The 1996 creation of Class B shares democratized access for smaller US investors without diluting the original Class A structure, which Buffett has explicitly stated will never undergo a stock split—preserving the exclusive nature of the Class A vehicle.

Berkshire’s scale advantages accelerated as the company grew. The $313 billion investment portfolio, managed with discipline and patience, generates returns that smaller competitors cannot match. The $109 billion cash position provides both dry powder for major acquisitions during market dislocations and evidence of financial fortress strength.

The Lasting Lesson

The gap between a $2.42 million outcome versus $22,400 from an identical $100 investment in 1965 is not primarily a story about luck. Instead, it reflects the compounding power of superior capital allocation decisions made consistently over nearly six decades. Buffett’s strategic shifts into insurance, his boldness during crises, and his evolution into technology during the company’s later chapters all contributed to sustained outperformance.

For investors studying the US equity markets, Berkshire’s trajectory offers both inspiration and caution—inspiration about what disciplined, patient capital deployment can achieve, and caution that replicating such results requires sustained excellence over timeframes that exceed most investment careers.