Warren Buffett and Greg Abel go on May 3, 2025 through the annual shareholders of Berkshire Hathaway in Omaha, Nebraska.
David A. Groge | CNBC
When Warren Buffett fails to win the CEO Berkshire HathawayHe will leave investors oversized for decades.
Buffett shocked the investment world on Saturday with a surprising announcement that after six decades until the end of the year he wanted to withdraw from Chief Executive Post. Berkshire's board approved his decision, whereby the billionaire continued his other role as chairman. He will pass on the CEO Baton to the designated successor Greg Abel.
The performance of the stock shows a legacy of Moves under Buffett, which made it possible to lead Berkshir's shares to lead circles on the wider market – even if dividends are included. In other words, the evidence lies in pudding.
In order to be precise, the Berkshire shares have increased between 5,502.284% between the time when Buffett in 1965 and the end of 2024 was a failed textile company in 1965 and the end of 2024. In comparison the latitudes S&P 500 During this period, dividends rose by 39,054%.
The monster figure of Berkshire corresponds to a tightened annual return of 19.9%. This is almost twice as high as the 10.4%recorded by the S&P 500.
Berkshire Hathaway returns to S&P 500
| Performance ads between 1965 and 2024 | Berkshire per share market value change (%) | S&P 500 with dividends (%) |
|---|---|---|
| Stricter annual profit | 19.9 | 10.4 |
| Total profit | 5.502.284 | 39.054 |
Source: Berkshire Hathaway
This outperformance was driven by a few years in which Berkshires shares left the wider market in the dust. In 1998, for example, Berkshire rose by 52.2%, while the S&P 500 rose by 28.6%. The Berkshire shares rose by 129.3% in 1976 and exceeded the 23.6% of the S&P 500.
In other years, Berkshire was able to move onto the market. When technology shares led a market melts that set the S&P 500 by 18.1% in 2022, Berkshire was able to end the year with 4% increase. While the S&P 500 set by 5%, Nebraska's conglomerate sat together by 31.8%.
There were some periods in which Berkshire bent. When the S&P 500 took back by 26.3% in 2023, the company's stock added only 15.8%. In 2020, Berkshire ended 2.4%higher and below average the S&P 500 by 16 percentage points.
Nevertheless, Jeremy Siegel, financial professor at the University of Pennsylvania, noticed Berkshires ability to surpass the S&P 500 by almost 2% in the past ten years.
“So that a value-based investor in the past 10 years has been above the S&P 500 what for value investors in the 100 years, if not the most difficult decade, is absolutely extraordinary,” Siegel told CNBC on Monday morning. “I don't think a value investor can touch him.”
Buffett is ready to end what his last year as a CEO with a high note. Class A shares in Berkshire rose by almost 19% in 2025 and reached an all -time high on Friday before the annual meeting. The S&P 500 has dropped by more than 3% to this day.
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Class A Berkshire shares against S&P 500