Someone’s sitting in the shade today because someone planted a tree a long time ago. – Warren Buffett
I didn’t invent the language or mathematics I used. I make little of my own food, none of my own clothes. Everything I do depends on other members of our species and the shoulders that we stand on. And a lot of us want to contribute something back to our species and to add something to the flow. It’s about trying to express something in the only way that most of us know how because we can’t write Bob Dylan songs or Tom Stoppard plays. We try to use the talents we do have to express our deep feelings, to show our appreciation of all the contributions that came before us, and to add something to that flow. That’s what has driven me. – Steve Jobs
What I learned [from Soros] was sizing is probably 70 to 80% of the equation. It’s not of whether you’re right or wrong. It’s how much you make when you’re right and how much you lose when you’re wrong. – Stanley Drukenmiller
Inspired by
A Legacy of Performance
This report provides an interactive analysis of Berkshire Hathaway’s remarkable long-term growth, comparing its market performance against the S&P 500 from 1965 through 2024 and exploring the core principles driving its success.
Overall Gain (1964-2024)
Berkshire Hathaway
5,502,284%
Total Market Value Gain
S&P 500
39,054%
Total Gain with Dividends
Compounded Annual Growth (1965-2024)
Compounded growth reveals the true engine of long-term wealth creation. Here is the comparison of the average annual returns, demonstrating how Berkshire’s approach has nearly doubled the performance of the broader market over the long run.
Berkshire Market Value
19.9%
S&P 500 with Dividends
10.4%
Berkshire Book Value
18.3%
The Berkshire Philosophy: Core Tenets of Success
The remarkable financial results are not accidental; they are the outcome of a disciplined and consistent application of a core set of principles that guide every decision at Berkshire Hathaway.
Evolving Measurement
Since 2018, the primary performance metric shifted from book value to market price to better reflect the intrinsic value of Berkshire’s operating businesses and the impact of share repurchases.
Focus on Operations
The company prioritizes operating earnings over GAAP net income, which can be distorted by volatile, unrealized investment gains and losses mandated by accounting rules.
Fiscal Conservatism
Maintaining redundant liquidity (often over $30B in cash) provides a robust financial posture, enabling opportunistic actions during periods of market instability.
Shareholder Partnership
Berkshire values its ‘lifetime’ shareholders, communicating with transparency and prioritizing long-term value creation over transient short-term results.
Reinvestment for Growth
Subsidiaries like Berkshire Hathaway Energy retain all earnings for reinvestment in long-term infrastructure projects, a practice that fosters substantial growth.
Enduring Leadership
The culture established by Warren Buffett and Charlie Munger is maintained by a clear succession plan, ensuring robust and continuous leadership for the future.
Berkshire Hathaway purchases and sells timeline
The Berkshire Hathaway Acquisition & Sells Engine
An interactive timeline detailing sixty years of significant purchases, strategic investments, and key divestments that transformed a failing textile mill into a global conglomerate.
Interactive Timeline
Scroll horizontally to explore the chronological flow of Berkshire Hathaway’s key transactions. Click on any card to reveal detailed insights into each purchase or sell.
A Visual Analysis of Acquisition Strategy
Acquisition Costs by Decade
This chart illustrates the escalating scale of Berkshire’s investments, showcasing the total capital deployed for major acquisitions in each decade. Note that many costs are not publicly disclosed.
Breakdown by Investment Type
This chart categorizes the timeline entries, revealing a strategic focus on acquiring full ownership of businesses, supplemented by significant controlling stakes and stock purchases.