Berkshire Hathaway Outperformed the S&P 500 Over a 60-Year Period Under Warren Buffett. Here's the Stock That Could Help Continue the Streak Under Greg Abel.

Berkshire Hathaway, under the leadership of Warren Buffett, has significantly outperformed the S&P 500 over a six-decade period, with a 19.7% annualized return compared to the S&P 500's 10.5%. Even if Berkshire's shares lost 99% of their value, they would still outperform the benchmark in the 60-year span. Despite this success, the company's new CEO, Greg Abel, faces the challenge of maintaining this performance.

Apple, a significant holding in Berkshire's portfolio, could be the key to continuing the streak. With a 1,140% increase since 2016, Apple represents about 20% of Berkshire's current $73.8 billion portfolio. Apple's strong brand, pricing power, and loyal customer base contribute to its success, but concerns about its high valuation remain.

Apple's recent financial growth, with a 16.2% YoY revenue increase in the first nine months of fiscal 2026, and a new CEO, John Ternus, present potential for continued outperformance. However, the company's size and vast cash reserves may limit future growth. The Motley Fool's Stock Advisor recommends 10 top stocks for long-term growth, but Apple was not included.