“An investment of $10,000 in Berkshire Hathaway stock in 1965 would have grown to approximately $355 million by 2022.” ~ Nasdaq
In 2022, Berkshire Hathaway outperformed the market, gaining 4% versus the S&P 500’s 19% drop.
Since Buffett took over in 1965, Berkshire Hathaway has beaten the market 39 out of 58 years. It has underperformed the market the other 19 years.
Since 1964, Berkshire Hathaway stock returns has outperformed the S&P 500 by a significant margin.
According to a report by Nasdaq, an investment of $10,000 in Berkshire Hathaway stock in 1965 would have grown to approximately $355 million by 2022, a compounded annual gain of 19.8%.
In contrast, an investment of $10,000 in the S&P 500 over the same period would have grown to approximately $2.3 million, a compounded annual gain of 9.9%.
Since that time, Berkshire Hathaway stock has gained more than 153 times the S&P 500’s gains over the same time period — good enough to give you roughly $355 million based on a $10,000 investment. That translates to a compounded annual gain of 19.8%, or nearly double the S&P 500’s 9.9% compound annual gain.
It’s worth noting that the above figures are based on past performance and do not guarantee future results.
Additionally, investing in individual stocks can be risky and requires careful consideration of one’s financial goals and risk tolerance.
Warren Buffett, Berkshire-Hathaway’s Chairman and CEO, is an advocate of buying stock in businesses that will last.
References: