Warren Buffett began acquiring shares of Berkshire Hathaway in 1962. He bought the stock through Buffett Partnership Ltd., initially viewing Berkshire as a cheap textile company whose liquidation might produce a profit.
Buffett started buying at about $7.50 per share, building the position after noticing that the company’s working capital exceeded its market price. By 1963, his partnerships owned roughly 7% of Berkshire. Buffett expected the company to sell its mills and make a tender offer for shareholders, allowing him to exit at a gain.
The strategy changed after Berkshire’s manager, Seabury Stanton, offered Buffett a buyback price that differed from the figure previously discussed. Buffett responded by buying more stock and eventually taking control. In 1965, he became Berkshire’s controlling shareholder and installed Ken Chace as president. The textile operations later proved disappointing, but Buffett retained the corporate shell and redirected it toward insurance and investments. The 1962 date is therefore the beginning of his share accumulation, not the year he formally took control.