From Berkshire report (via Yahoo Finance):
“Berkshire Hathaway saw a 19.8% compounded annual gain from 1965 to 2022, compared to 9.9% for the S&P 500 Index. In terms of overall gain, Berkshire saw a 3,787,464% rise during that time period while the S&P rose 24,708%.”
If someone invested $10k through Berkshire Hathaway in 1965, that money would be $300mm today.
The 2x difference of average annual return between Berkshire and S&P, which doesn’t seem as staggering, led to the almost unthinkable difference of 3,787,464% vs 24,708% when applied over a long period of time. That’s the power of compounding returns!