Investing with Warren Buffett is a smart move, given his impressive track record of nearly 60 years with an average annual gain of around 20%.
Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A) (BRK.B 0.24%), has been a legendary investor for decades. The company’s growth and performance have been outstanding, with an overall gain of 4,384,748% from 1965 to 2023, averaging 19.8% per year. While most of us didn’t invest in Berkshire back in 1965, it’s still fascinating to see the remarkable success Buffett has achieved.
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If you had invested $10,000 in Berkshire Hathaway just 10 years ago, you would now have $31,797, representing an average annual return of 12.26%. While this may seem lower compared to past performance, it still outperforms the S&P 500, which averaged 11.61% over the same period.
Berkshire’s growth has slowed down recently due to its immense size, with a market value of $950 billion. Despite holding significant cash reserves of $277 billion, Buffett is selective in his investments, prioritizing quality and reasonable valuations.
While Berkshire may not deliver 20% annual gains consistently in the future, it remains a solid investment option for long-term growth. The conglomerate operates diverse businesses, ranging from insurance and energy to jewelry and transportation. Additionally, it holds substantial stakes in companies like American Express, Coca-Cola, Apple, and Bank of America.
Considering Berkshire Hathaway’s stable growth potential, it could be a valuable addition to your investment portfolio. However, future returns may vary, so it’s essential to have realistic expectations when investing in the stock.
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Selena Maranjian has positions in American Express, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
