One chart shows how Warren Buffett trounced the S&P 500 over the past 60 years

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Mon, May 5, 2025, 12:11 PM 2 min read

Warren Buffett is stepping down arsenic CEO of Berkshire Hathaway (BRK-A, BRK-B) aft starring the institution to a mind-boggling tally of banal outperformance against the S&P 500 (^GSPC).

From 1965 to 2024, Berkshire Hathaway banal has returned 5,502,284%. In that aforesaid clip period, the S&P 500, with dividends included, has provided a instrumentality of 39,054%. Berkshire Hathaway's compound yearly summation implicit that play tallied 19.9%. The S&P 500's instrumentality was 10.4%.

Digging into the details of Buffett's outperformance, astir of Berkshire Hathaway's summation came successful the archetypal 20 years since Buffett took power of the company. Berkshire's accordant resilience compared to the broader marketplace besides stands out. In the 13 times the S&P 500 closed the twelvemonth little implicit the past 60 years, Berkshire fell much than the benchmark scale lone twice.

"The semipermanent inclination is up," Buffett said astatine Berkshire Hathaway's yearly shareholders gathering connected Saturday.

During the meeting, Buffett addressed Berkshire Hathaway's increasing heap of cash. At the extremity of the archetypal quarter, Berkshire had amassed a currency heap of $347.7 billion. Buffett noted that his assurance successful raising currency and not feeling the request to beryllium afloat invested astatine each times is 1 crushed he's been palmy implicit specified a agelong period.

"We would alternatively person conditions that person developed wherever we would have, like, $50 cardinal oregon thing similar that," helium said. "But that conscionable isn't the mode the concern works."

Buffett added that if helium made investments simply for the intent of getting Berkshire's currency holdings down to $50 billion, "That would beryllium the dumbest happening successful the satellite to put successful that manner."

On Saturday, Buffett announced helium planned to measurement down from his relation arsenic Berkshire Hathaway's CEO and walk his relation onto Greg Abel.

"I deliberation it's the clip has arrived wherever Greg [Abel] should go the main enforcement serviceman of the institution astatine year-end," said Buffett, who was chairing his 60th yearly meeting. "And I privation to outpouring that connected the directors, effectively, and springiness that arsenic my recommendation."

Berkshire Hathaway's committee unanimously approved the determination connected Sunday. Abel volition go CEO connected Jan. 1 2026, and Buffett volition stay president of the committee of directors.