arren Buffett’s Berkshire Hathaway has reached remarkable heights, with the company poised to withstand a 99% crash in its stock price and still maintain its longstanding dominance over the S&P 500, a feat that highlights the enduring success of Buffett’s leadership.
Chris Bloomstran, President of Semper Augustus Investments, a committed Berkshire shareholder, recently pointed out that even if Berkshire Hathaway’s stock price plummeted by 99.4%, it would still have outperformed the S&P 500 since “current management” took control in 1965.
Over nearly six decades, Berkshire Hathaway’s Class A shares have skyrocketed by an astonishing 3,800,000%, far surpassing the S&P 500’s comparatively modest 25,000% gain over the same period. The remarkable difference underscores Berkshire’s resilience and consistent performance in the market.
As of now, Berkshire’s Class A shares continue their upward trajectory, posting a 17% gain this year and reaching an almost record-high value of $550,000 per share. This growth closely mirrors the S&P 500’s year-to-date rise, further accentuating Berkshire Hathaway’s remarkable achievement in terms of stock performance.
Bloomstran also highlighted a fascinating fact about Buffett’s original investment in Berkshire Hathaway, noting that he purchased his position for under $11 per share, while the company currently earns $11 per share every 2.25 hours. This staggering statistic underscores the scale of Berkshire Hathaway today, with its diverse portfolio of businesses, including Geico, Duracell, Dairy Queen, and substantial holdings in industry giants like Apple and Coca-Cola.
In the previous year, Buffett’s company reported over $300 billion in revenue and $30 billion in operating income, reaching a significant milestone with assets surpassing $1 trillion by the end of the second quarter. This total included nearly $150 billion in cash and Treasury bills, alongside a stock portfolio valued at roughly $350 billion.
In his annual letter to shareholders, Buffett attributed Berkshire Hathaway’s phenomenal success to select long-term investments, such as its stakes in Coca-Cola and American Express, both of which were made over 25 years ago. He also expressed his confidence in the company’s continued prosperity, stating, “Over time, it takes just a few winners to work wonders. At Berkshire, there will be no finish line.”
Warren Buffett’s Berkshire Hathaway continues to stand as a testament to enduring excellence in the world of investing, as its performance consistently outpaces even the most formidable benchmarks, solidifying its position as a powerhouse in the financial industry.
This article was originally published on Business Insider.
