Oracle of Omaha: How Warren Buffett Built His Fortune

Warren Buffett, nicknamed the “Oracle of Omaha,” is one of the world’s most successful and influential investors. As chairman and CEO of Berkshire Hathaway, he built a multibillion-dollar fortune through disciplined value investing, long-term holdings, and acquisition of businesses with durable competitive advantages.

Key takeaways

• Buffett is known for value investing: buying high-quality companies at attractive prices and holding them for the long term.
• He leads Berkshire Hathaway, a conglomerate owning dozens of businesses and large equity stakes in public companies.
• Notable investments include Coca-Cola and Apple; Buffett also pledges the vast majority of his wealth to philanthropy.

Early life and beginnings

Born in Omaha, Nebraska, in 1930, Buffett developed an interest in business and investing early. His father was a stockbroker, and Buffett bought his first shares at age 11. As a teenager he ran small businesses (newspaper delivery, pinball machines) and prepared his own taxes. He later graduated from the University of Nebraska and studied value investing under Benjamin Graham.

Wealth and holdings

• Buffett amassed his wealth by buying and building businesses through Berkshire Hathaway. The company owns or controls dozens of subsidiaries (for example, GEICO, Duracell, and See’s Candies) and holds large public equity positions.
• He has pledged to give away the majority of his wealth; in 2006 he announced plans to donate more than 99% of his fortune to charitable causes.
• As of 2025, his net worth is estimated in the hundreds of billions.

Succession

Berkshire Hathaway has planned leadership succession: Greg Abel (CEO of Berkshire Hathaway Energy) has been identified to succeed Buffett as CEO of Berkshire when he steps down.

Investment philosophy

Buffett follows the Benjamin Graham school of value investing with some distinctive emphases:
* Buy businesses with durable competitive advantages (“economic moats”) and predictable, strong cash flows.
* Focus on fundamentals: return on equity, consistent profitability, and low reliance on debt.
* Prefer strong management and clear business models.
* Hold investments long term rather than trading frequently.
* Famous guiding principle: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Notable investments

Investing in Coca‑Cola
* Buffett began buying Coca‑Cola shares in 1988, following the 1987 market downturn. Over several years he invested about $1.3 billion to acquire roughly 400 million shares (about 6–7% at the time).
* He valued Coca‑Cola for its global brand, pricing power, and steady cash generation. The position has produced substantial capital appreciation and recurring dividend income for Berkshire.

Investing in Apple
* Berkshire began buying Apple in 2016, marking a broader openness to large-cap tech-related consumer franchises.
* Buffett views Apple more as a consumer products company with a strong brand and ecosystem than as a pure technology play. The stake has become one of Berkshire’s largest holdings.

Common questions

Who is the Oracle of Omaha?
Warren Buffett — an American investor, business leader, and philanthropist, best known for leading Berkshire Hathaway.

How did Buffett make his money?
Primarily through value investing, acquiring businesses, and building a diversified portfolio of long-term holdings under Berkshire Hathaway.

What is his investment strategy?
Buy high-quality companies with sustainable advantages at attractive prices, focus on fundamentals and management, minimize debt exposure, and hold for the long term.

The bottom line

Warren Buffett’s reputation rests on a simple, disciplined approach: identify quality businesses selling at reasonable prices, emphasize fundamentals and management quality, and compound returns over time through long-term ownership. His practices — conservative financial analysis, focus on durable competitive advantages, and patience — remain central lessons for investors.