Wednesday, September 10, 2025

Wanna 'follow the money'? Follow these guys...

 
Over the last ten years, Berkshire Hathaway's Class B shares (BRK.B) have had mixed performance, with some sources indicating returns around 277-281% between September 2015 and September 2025, while others show a higher 10-year return of around 277.3%. 
There are varying figures for Berkshire Hathaway's 10-year performance, but they consistently fall in a range of hundreds of percent. For example, some reports cite a 10-year return of over 277%. 
In the most recent 10-year period ending in 2023, Berkshire Hathaway's compounded annual growth rate (CAGR) was 11.8%. 
 

The company's ability to generate high returns has diminished as its size has increased. The sheer scale of Berkshire Hathaway makes it harder to achieve significant growth, requiring huge value additions to move the stock price.
Even still, that's fairly stellar returns yaer-over-year as compared what most of us are capable of acheiving on our own.

The investment strategies made famous by Warren Buffett.


1 comment:

  1. 11.7% CAGR = 3.02x in 10 years. These numbers are very sensitive to time period picked, however: Brk's 3 year CAGR is around 20%. Effectively, Brk is a large cap, value mutual fund with a single huge advantage over any other mutual fund: it does not distribute dividends or capital gains, and thus creates no tax liability even in a regular investment account. Brk thus acts as if it were a Roth IRA, without the constraints of that structure. It also has another unusual characteristic; BRK does not move in step with any other mutual fund I have looked at. That is, it's correlation coefficient (R-sq) with other funds is always very low, <0.2. This makes Brk an excellent component of a portfolio of good mutual funds as it tends to move in the opposite direction of other funds and thus stabilizing the portfolio.

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