Here's How Berkshire Hathaway Beats The Market From Here
The Motley Fool
by newsfeedback@fool.com (Matt Frankel, CFP)February 25, 2026
AI-Generated Deep Dive Summary
Berkshire Hathaway has long been a standout performer in the financial markets, delivering an extraordinary 6,100,000% total return since Warren Buffett became CEO in 1964. This far exceeds the S&P 500's 45,000% growth over the same period. While Berkshire's historical success is remarkable, Buffett has cautioned that future returns may not match these highs due to the company's significantly larger scale—now managing a trillion dollars versus a billion in earlier decades.
The key to Berkshire's success lies in its long-term approach and focus on intrinsic value investing. The company's ability to compound wealth over time has been unmatched, often maintaining an annualized return above 20%. However, scaling up presents challenges, as larger investments limit the potential for high-growth opportunities and make it harder to achieve such returns consistently.
This matters because Berkshire's performance offers valuable lessons for investors. It highlights the importance of patience, compounding growth, and disciplined investing in undervalued assets. While future returns may be more modest, they are still expected to outpace broader market averages, making Berkshire a significant player in understanding long-term investment strategies.
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Originally published on The Motley Fool on 2/25/2026