Here's Warren Buffett's Cost Basis for Berkshire Hathaway's 10 Largest Holdings
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is arguably the greatest investor of our time. Rather than relying on fancy charting software or throwing his weight around as an activist investor, Buffett's approach has always been to buy companies that have clear-cut and sustainable competitive advantages, and to hang onto those businesses for very long periods of time.
As Berkshire Hathaway's most recent annual shareholder letter shows, patience pays off. Between 1965 and 2020, Berkshire Hathaway's average annual gain was 20%, which was nearly double the 10.2% average annual total return (i.e., including dividends) of the benchmark S&P 500 over the same period. Over this time span, Berkshire Hathaway's stock has nearly outperformed the S&P 500 by an aggregate of 2,800,000%.
Berkshire Hathaway CEO Warren Buffett is all smiles with cost bases this low. Image source: The Motley Fool.
Source Fool.com
