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Buffett Deputy's IRA Soared to $264M
11 Oct
Summary
- Retirement account grew from over $70,000 to $264 million.
- Success attributed to careful stock selection and luck.
- A Roth IRA conversion incurred a $28 million tax bill.
Ted Weschler, a key figure at Berkshire Hathaway, impressively grew his individual retirement account (IRA) from over $70,000 in 1989 to $264 million by the end of 2018. His investment strategy primarily involved publicly traded securities, emphasizing careful stock selection and benefiting from exceptional luck over a multi-decade period.
Weschler began his IRA in 1984 at age 22, maximizing contributions and employer matches. By 1989, he had accumulated more than $70,000 and then transferred his savings into a self-directed IRA to gain full control over his investments.
In 2012, Weschler converted his IRA to a Roth IRA when the account held $131 million, incurring a federal tax liability exceeding $28 million. The account's value reached $264 million by the end of 2018.
Weschler joined Berkshire Hathaway in 2012 and assists Warren Buffett in managing the company's vast stock portfolio, valued at $270 billion. He continues to make personal investments, including a disclosed 6% stake in Dillard's, which had seen significant stock price appreciation.
