Warren Buffett’s Net Worth Jumped $26 Billion This Year

As Warren Buffett said he would step down as the CEO of Berkshire Hathaway (NYSE: BRK-B), which he took over six decades ago, he is the only person among the 50 wealthiest people in the world who has had a net worth that has risen more than $10 billion this year, according to the Bloomberg Billionaire Index. He sits at No. 6 on the list with a net worth of $169 billion, up $26 billion this year. Buffett is just ahead of his friend Bill Gates, co-founder of Microsoft, with a net worth of $168 billion. Buffett owns 15% of Berkshire Hathaway and has additional shares, giving him 38% of the voting stock.

Buffet’s belief in stocks has been shaken a bit by recent major market movements. He is not alone. Worries about a global recession have driven people out of stocks. Some investors have even sold U.S. Treasury bonds, which are supposed to be among the safest investments in the world. The money from these sales has begun to move into cash.

Annual Meeting

At the Berkshire Hathaway annual meeting, he said his company had $345 billion of cash on hand. He said he was close to a “$10 billion deal” recently. For reasons he did not give, he dropped the plan. He also said he has been selling stocks recently. People cannot tell if this is due to a worry about the market or if he is waiting for lower-price entry points on stocks he already favors.

Buffett’s net worth is clearly due to the rise in Berkshire Hathaway shares this year. They are up 19%, while the S&P is off almost 7%. It is the 8th most valuable company in the world, with a market cap of $1.16 trillion.

Buffett has Berkshire holdings in about 30 stocks, some of which he has held for decades. Among them are stakes in Coca-Cola (NYSE: KO), American Express (ANP), Occidental Petroleum (NYSE: OXY), Visa (MYSE V), Chubb (NYSE CB), Chevron (NYSE: CVX), and other public companies. Berkshire also has substantial investments in private companies, including insurance company giant GEICO and BNSF Railway, the largest freight railroad in the United States.

Additionally, Buffett favors insurance companies. He owns Berkshire Hathaway Reinsurance Group, National Indemnity Company, and Berkshire Hathaway Specialty Insurance, which focuses on business and commercial insurance. Describing these investments, he said, “It’s so much fun because you get the money at the start, you know, and then find out whether you’ve done something stupid later on.”

Finally, Buffett bought companies that did not fit his usual pattern. In 1983, he purchased Nebraska Furniture Mart for $60 million, and in 2014, he bought the Miami-based TV station WPLG.

Investors also love Buffett’s long-term track record. A $10,000 investment in Berkshire 30 years ago would be worth $682,000 today.

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