Here's How Warren Buffett's Berkshire Hathaway Stock Did in Every S&P 500 Down Year Since 2000
The company's shares beat the index all six times. Can investors count on a seventh?
Berkshire Hathaway's stock has outperformed the S&P 500 in every down year since 2000, according to Warren Buffett's annual letters. In 2000, Berkshire's stock rose 26.6% while the index declined 9.1%. In 2001, Berkshire gained 6.5% against an 11.9% decline for the index. 2002 saw Berkshire drop just 3.8% compared to a 22.1% decline in the S&P 500.
The stock fell 31.8% in 2008 compared to a 37% drop in the index, and rose 2.8% and 4% in 2018 and 2022 while the index fell 4.4% and 18.1%, respectively. Over these six years, Berkshire gained less than 1% a year on average, while the index lost about 17%. Two more years would make the list if dividends are not considered, as the index declined in 2011 and 2015, and Berkshire's stock fell both years by 4.7% and 12.5%.
Berkshire's edge in these down years has varied from about 5 percentage points in 2008 to 36 points in 2000. With over $365 billion in cash and Treasury bills, Berkshire's balance sheet remains strong. While the stock's performance in future down years is uncertain, the record suggests it could hold up better than the index.
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