(Part I) The Making of The Oracle: Warren Buffett’s Rise And Reinvention Of Berkshire Hathaway

Warren Edward Buffett, the “Oracle of Omaha,” is officially stepping down as CEO of Berkshire Hathaway – marking the close of one of the most extraordinary careers in business history.

From humble paper routes to Wall Street legend—discover how Warren Buffett transformed Berkshire Hathaway into one of the most successful companies in history. I Illustrator: ASK

At 94, Buffett announced at Berkshire’s 2025 annual meeting that he would hand the reins to his successor Greg Abel by the end of the year.

As the business world reflects on his retirement, we begin a three-part series that chronicles Buffett’s remarkable journey and his enduring impact on global finance and investing.

In this first installment, we trace Buffett’s early life, education, and the founding of the Berkshire Hathaway empire – a case study in how long-term vision and discipline can redefine industries.

Early Life and Entrepreneurial Roots

Buffett’s business acumen emerged early. Born in 1930 in Omaha, Nebraska, to Leila and Howard Buffett – a stockbroker and congressman – Warren was dealing with numbers and profits by age six.

He sold chewing gum and Coca-Cola door-to-door, ran a newspaper route, and launched a pinball machine business as a teen.

By age 13, he filed his first tax return, deducting his bicycle as a business expense. These early ventures revealed his deep fascination with earning, saving, and investing.

The Graham Influence and Investment Foundations

Buffett attended the Wharton School and later transferred to the University of Nebraska before completing his graduate studies at Columbia Business School. There, he studied under Benjamin Graham, the father of value investing.

Graham’s teachings on intrinsic value, margin of safety, and the importance of buying undervalued stocks laid the foundation for Buffett’s lifelong investing approach.

After a short stint at Graham-Newman Corp., Buffett returned to Omaha and formed his first investment partnership at age 26. Buffett Partnerships consistently delivered returns that far exceeded the market, using Graham's methods with his own intuitive refinements.

The Birth and Transformation of Berkshire Hathaway

In 1965, Buffett took control of Berkshire Hathaway, a struggling textile company. Initially a value play, the investment evolved into Buffett’s long-term corporate vehicle.

He redirected cash from its operations into other businesses, beginning with insurance.

The acquisition of National Indemnity Co. marked the start of a successful insurance empire, providing Berkshire with the investment "float" that powered future deals.

Buffett dissolved his investment partnerships in 1969 to focus exclusively on Berkshire, transforming it into a conglomerate that acquired iconic companies like GEICO, See’s Candies, and The Washington Post.

Over the next five decades, Buffett would use Berkshire to buy and invest in businesses he deemed fundamentally sound and undervalued.

Berkshire’s Unparalleled Performance

From 1965 to 2024, Berkshire Hathaway's stock grew over 5,500,000% — compared to the S&P 500’s 39,000% return. Buffett achieved this by identifying great businesses, investing for the long-term, and resisting the short-termism of Wall Street.

Today, Berkshire Hathaway stands as a trillion-dollar conglomerate with a portfolio that spans insurance, energy, railroads, consumer goods, finance, and technology.

Buffett’s ability to remain true to his principles while adapting to changing markets has made him one of the most successful investors of all time. 

In Part 2 of our series, we dive deeper into Buffett’s investment philosophy, the pivotal influence of Charlie Munger, and the hallmarks of Berkshire’s most iconic investments.