No. of Recommendations: 18
"This is where the legend of Buffett’s genius rightly springs. What is less well known, however, and even less discussed, is that these first five decades account for more than 100% of Buffett’s career outperformance. While he beat the S&P by a factor of almost 500 in his first fifty years, he has underperformed it in the eighteen years since. As the chart below shows, a million dollars invested in the S&P from the end of 2007 through mid-December 2025 would today be worth $6.6 million, almost 25% more than the $5.3 million you would have earned in Berkshire’s stock."We know you don't put much stock in what Buffett has said over the years, but he did warn us. He said outperformance was going to be difficult as Berkshire grew. He was right.
I'm happy Berkshire has done so well. It has more or less kept up with a US stock market that has gotten more and more highly valued, while staying quite reasonably valued itself. Berkshire stock has actually *beaten* SPY over the last 5 years, all the while holding a ton of cash.
https://testfol.io/?s=2LTXX1F4Fwu16% CAGR. I'll take that.*
* Start/end point matter a great deal with these things...
