Stewart Horejsi’s ascent from a small Kansas welding business owner to a multibillionaire stands as one of the most striking examples of buy-and-hold investing in American finance. Over the course of four decades, his steadfast commitment to Berkshire Hathaway (BRK.A) shares—bought at the turn of the 1980s—catapulted his net worth to over $2.5 billion, proving that consistency and conviction can rival even the most complex strategies in wealth creation.
From Welding to Warren Buffett
Horejsi’s story began not on Wall Street, but in Salina, Kansas, where he ran his family’s welding supply company, Brown Welding Supply LLC. He first bought Berkshire Hathaway shares in 1980, acquiring 40 Class A shares at $265 each, then adding 60 shares at $295, and later 200 shares at $330—totaling an initial outlay of $94,300. Rather than sell during the ensuing bull markets, he continued reinvesting the profits from his business, eventually amassing 5,800 shares. By the late 1990s, when he sold 25% of his position at roughly $78,000 per share, he had already set the foundation for an extraordinary fortune.
Berkshire Hathaway’s Exponential Growth
Berkshire Hathaway’s trajectory over the past 40 years has been nothing short of remarkable. The company’s Class A shares, which Horejsi purchased for less than $330 apiece in 1980, now trade at over $430,000. Over that period, Berkshire delivered an average annualized return of about 19%, with compounding accounting for the vast majority of that growth. Horejsi’s remaining 4,800 shares—never sold—today represent more than $2 billion in equity value alone. His overall wealth, which also includes investments in Wells Fargo, IBM, and Walmart, is estimated at $2.5 billion according to Forbes.
Behavioral Consistency and Wealth Creation
The lesson from Horejsi’s experience is less about market timing and more about temperament. Over decades, he never capitulated to panic during bear markets, nor was he tempted by euphoria during booms. His investment philosophy mirrored that of Warren Buffett: buy excellent businesses and hold indefinitely. His willingness to reinvest earnings and avoid unnecessary diversification was not the product of financial genius, but of discipline and a profound understanding of compounding.
Berkshire Hathaway: The Discipline of Patient Ownership
Stewart Horejsi’s fortune was built not on chasing income or yield, but on the simple, powerful principle of buying and holding. Berkshire Hathaway has never paid a dividend, instead choosing to reinvest every dollar of profit into acquisitions, share buybacks, and the expansion of its core businesses. This approach has allowed the company’s value to compound over decades, with Class A shares rising from less than $330 in 1980 to over $430,000 today.
Conclusion: Time and Conviction as Ultimate Advantages
Horejsi’s success demonstrates that the most effective investment strategy is not about chasing short-term gains or frequent trading, but about patience, conviction, and the willingness to let time work in your favor. By holding Berkshire Hathaway shares for over 40 years, he allowed the company’s relentless reinvestment to drive exponential growth in his portfolio. The lesson is clear: true wealth creation comes from the discipline of buying quality assets and holding them through market cycles, regardless of the specific path to returns.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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