Warren Buffett's Berkshire Compounded at 19.9% a Year Over 60 Years as CEO, Nearly Double the S&P 500's Return. Can Investors Still Expect That Playbook Today?
Berkshire Hathaway is already a $1 trillion company.
Warren Buffett, widely regarded as one of the most successful investors of this era, is set to hand over the reins of Berkshire Hathaway to new CEO Greg Abel upon his retirement. Under Buffett's leadership, Berkshire Hathaway's stock has delivered an impressive 19.9% annual compounded return over the past 60 years, nearly twice the 10.4% annual return of the S&P 500.
The company's vast portfolio of 200 businesses and $350 billion in equity positions has seen extraordinary growth, with Berkshire Hathaway stock up by an astounding 5,500,000% during this period. Despite the significant changes in leadership, Greg Abel has so far maintained the foundational strategies implemented by Buffett, with no major alterations to the established model.
However, Abel has initiated the removal of smaller equity positions, a pledge made prior to taking over the role. In July, Berkshire Hathaway also acquired homebuilder Taylor Morrison for $6.8 billion, marking a notable addition to its portfolio. The question remains: can investors anticipate replicating this successful playbook in the current market?
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