Led by Warren Buffett, one of the most famous investors of all time (and one of the most successful), Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has delivered incredible returns to shareholders over his long career. Buffett knows how to “pick shareholders,” as they say.
Berkshire’s success is based on the investment philosophy of Buffett and his late partner, Charlie Munger, which revolves around finding “wonderful” companies and holding on to them for the long term, similar to our philosophy at Motley Fool. Among these wonderful companies are some of the biggest names in the world: Coca-cola, American Expressand Appleto name just a few.
Their approach turned both men into billionaires and made the company the only non-tech firm in the U.S. to surpass $1 trillion in market capitalization.
Berkshire Hathaway’s $1,000 Stock Growth
If you had invested $1,000 in Berkshire five years ago, your investment would be worth more than $2,300 today. That’s a gain of 132% or 18% annualized – not a bad return! S&P 500 Index is up just 85% over the same period. Berkshire’s performance outperformed even that of tech companies. Nasdaq Composite Indexwhich rose by 111%.
The best time to invest in Berkshire would have been a long time ago, but better late than never. Berkshire is a phenomenal company to this day. It may not enjoy the growth rate it has experienced in previous years (and yes, Buffett is reaching adulthood), but Berkshire continues to make sound investment decisions and increase the wealth of its shareholders.
Investors can expect the company to be guided by the same philosophy and values for many years to come. The future continues to look bright for Berkshire.
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American Express is an advertising partner of The Ascent, a Motley Fool Company. Johnny Rice has no positions in the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
If You Had Invested $1,000 in Berkshire Hathaway Stock 5 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool