Warren Buffett took control of Berkshire Hathaway in 1965.
Buffett began buying Berkshire Hathaway shares in 1962 through Buffett Partnership Ltd., his investment partnership. Berkshire was then a struggling textile manufacturer, and Buffett initially expected to profit from the company’s plan to close mills and repurchase shares.
A dispute with Berkshire manager Seabury Stanton changed that strategy. Stanton offered to repurchase Buffett’s shares at a price below what had been verbally agreed. Buffett responded by buying more stock instead of selling. In 1965, his partnerships acquired enough shares to take control, and Buffett installed Ken Chace as president.
The takeover gave Buffett control of a declining textile business, which he later called one of his worst investments. He gradually redirected Berkshire toward insurance and other operating businesses. The company’s transformation accelerated after Berkshire acquired National Indemnity in 1967 and began building a diversified group of subsidiaries and investments.