- Berkshire Hathaway has beaten the S&P 500 going back 20 years.
- The company is built to endure the most challenging market environments.
The “Oracle of Omaha” Warren Buffett is a legendary billionaire investor and one of the world’s wealthiest people. While his start at a very early age helped him build a fortune, Buffett hasn’t lost his investing touch.
Since becoming CEO in 1965, the Oracle of Omaha has overseen a greater than 4,400,000% return in his company’s Class A shares (BRK.A). This works out to a nearly 20% annualized return over 58 years.
Additionally, Berkshire Hathaway has outperformed the S&P 500 index over the past 20 years. Had you invested $10,000 in Berkshire Hathaway in 2003, you would have more than $71,000 today to the S&P 500’s $62,200.
Buffett, and his investing lieutenants, Ted Weschler and Todd Combs, are huge fans of businesses that regularly buy back their stock and increase Berkshire Hathaway’s ownership stake without him or his investment team having to lift a finger.
Stock buybacks can have a positive fundamental impact on a company. For a company with steady or growing net income, buybacks have the ability to increase earnings per share over time. This should help a company’s stock look even more attractive to fundamentally focused value seekers.
References:
- https://www.fool.com/premium/coverage/investing/2023/09/27/if-you-invested-10000-in-berkshire-hathaway-in-200/
- https://www.msn.com/en-us/money/topstocks/warren-buffett-is-selling-shares-of-this-high-yield-dividend-stock-and-likely-buying-shares-of-his-favorite-stock-no-not-apple/ar-AA1hkkk9