"Warren Buffett's statistically improbable returns provided from 1965 through 2024 are truly remarkable to consider. Over this time frame, Berkshire Hathaway compounded returns for investors at an incredible 19.9% clip. When compared to the S&P 500, a world-class index of the largest companies in the U.S. (which produced compounded annual returns of 10.4% over this time frame), that's a near-doubling of one's annual return each and every year."
"Thus, investors who held Berkshire as a bet on the U.S. economy (before their were ETFs) and held to today would have compounded their wealth at an astronomical rate. Investors who didn't sell a share from 1965 to today would have total returns of more than 5,000,000% (good for a 50,000x) over this time frame. Granted, those shares are now likely in the hands of these initial investors' children or grandchildren, but you get the point. Compounding works wonders over the very long-term."
"That's not to say there will be another investor that will come that will provide even greater returns over a similarly-long time horizon as Buffett has. But the Berkshire Hathaway ( NYSE:BRK-B) CEO is certainly special, and will be remembered as an institutional investor that beat the market in more years than not over his more than 50 year career as the CEO of one of the greatest conglomerates in history."
Warren Buffett led Berkshire Hathaway to a 19.9% compound annual return from 1965 through 2024, versus a 10.4% compounded return for the S&P 500. Berkshire shareholders who held since 1965 would have seen total returns exceeding 5,000,000% (about 50,000x), while the S&P produced roughly 40,000% over the same period. Buffett beat the market in more years than not across a more than fifty-year tenure as CEO. The results illustrate the extraordinary power of long-term compounding and position Berkshire as one of history's most successful conglomerates.
Read at 24/7 Wall St.
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