Over the past several decades, Warren Buffett and Charlie Munger have built Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) into the world's most successful financial holding company by adhering to a distinct, three-tiered approach. That approach involves fostering insurance operations (including Geico and General Re), investments (both fixed income and publicly traded stocks), and a diversified group of acquired businesses (including Dairy Queen, Burlington Northern Santa Fe, Duracell, and dozens of others).

Berkshire has delivered mind-boggling returns for early investors in the process -- to the tune of 3,787,464% between 1964 and 2022, to be exact, not including its roughly 11% gain so far in 2023 as of this writing.

Even Buffett admits, however, that it will be significantly harder for Berkshire to deliver outsized gains going forward, especially as it works to build on its already enormous $750+ billion market capitalization.

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Source Fool.com