Berkshire Hathaway’s Mind-Blowing Performance: A 20% Annualized Return Since 1965
Imagine being able to turn every $100 into $1,343,420 over the past six decades. That’s the kind of magic Berkshire Hathaway (BRK.A) has been working since 1965. Yes, you read that right: a 20% annualized rate of return!
A Long-Term Investment Success Story
Now, I know what you’re thinking. “20%? That’s not even possible!” Well, buckle up, buttercup, because it’s not only possible, but it’s also a reality for those who’ve had the foresight and patience to invest in this legendary company.
For context, the average annual return of the S&P 500 over the same period was a mere 10.2%. That’s a difference of over 10 percentage points!
How It Affects You
If you had invested a mere $1,000 in Berkshire Hathaway back in 1965, your investment would now be worth a whopping $1,343,420. That’s enough to buy a nice house, a handful of cars, and maybe even a small island, depending on your location.
But it’s not just about the money. The mind-boggling returns from Berkshire Hathaway serve as a powerful reminder of the importance of long-term investing. It’s a testament to the fact that, when it comes to building wealth, patience and discipline often pay off in spades.
How It Affects the World
Berkshire Hathaway’s success story doesn’t just impact its shareholders. It has a ripple effect on the economy as a whole. The company’s vast portfolio of businesses, from insurance to railroads to consumer goods, generates jobs and drives innovation.
Moreover, Warren Buffett, Berkshire Hathaway’s legendary CEO, is a known philanthropist. He’s pledged to give away 99% of his fortune to charitable causes, inspiring others to follow suit.
In Closing: A Lesson in Patience and Persistence
Berkshire Hathaway’s phenomenal performance since 1965 is a testament to the power of long-term investing and the importance of staying the course. It’s a reminder that, while short-term gains are nice, it’s the long game that truly pays off.
So, whether you’re just starting out on your investment journey or have been at it for years, take a page from Berkshire Hathaway’s book. Be patient, be persistent, and trust the process. The rewards might just surprise you.
- Berkshire Hathaway has delivered a staggering 20% annualized return since 1965.
- This far exceeds the average gain of the S&P 500.
- The impact of this performance goes beyond just its shareholders.
- It creates jobs, drives innovation, and inspires philanthropy.
