Berkshire Hathaway has delivered far higher long-term compounding than the S&P 500, turning a dollar into about 39,000 times over roughly 60 years versus about 405 times for the S&P 500 with dividends reinvested. Buffett’s 1996 shareholder letter promoted owning common stocks through low-fee index funds, arguing that most investors would beat the results of most professionals by following that approach. Despite that guidance, Berkshire’s performance stands as an exceptional case. Berkshire is described as operating like a low-cost private equity structure because shareholders pay no management fee and no carry. Current metrics include a trailing P/E around 14 and a lower beta than the broader market, while insider activity points to succession planning.
"“the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results delivered by the great majority of investment professionals.”"
"From 1965 to 2025, the S&P 500 delivered roughly a 10% compound annual growth rate, turning a dollar into about 405 dollars with dividends reinvested. Berkshire compounded at roughly 19% over the same 60 years, a 39,000x return. That gap compounds into the difference between comfortable retirement and dynastic wealth."
"Rosenthal called Berkshire “the Vanguard of private equity funds” because shareholders pay no management fee and no carry. The compounding engine runs unburdened by the layers of cost that erode most actively managed vehicles."
"Berkshire Hathaway today trades at $479.98, a 5.33% decline over the past year while the broader market climbed. The conglomerate carries a trailing P/E of 14, a beta of 0.622, and $375.4 billion in trailing revenue. Insider activity has tilted toward succession, with Gregory Abel acquiring 18 Class A shares on March 4, 2026 at prices ranging from $725,210 to $733,300."
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