Warren Buffett Annual Letter Takeaway: Berkshire Is Cheap, Underappreciated

Saturday, Feb. 27, brought with it the latest annual letter from Warren Buffett, whose wisdom investors have been following for the past 56 years. Over that time, his conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has compounded wealth at a stunning 20% rate, versus a 10.2% rate for the S&P 500.

That track record is perhaps even more incredible than you might suspect. By compounding at nearly double the rate of the market every year for over a half-century, $1 invested in Berkshire in 1965 would be worth $27,173 by year-end 2020, versus just $230 if invested in the S&P 500.

Still, Berkshire's relative record used to be even better. In fact, Berkshire has lagged the market over the past one-, three-, five-, and 10-year periods:

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Source Fool.com