By Jack Pitcher and Peter Santilli

Warren Buffett's returns are off the charts.

Between 1965 -- when Buffett took over -- and the end of last year, Berkshire Hathaway shares rose just over 5,500,000%. That makes it difficult to compare Berkshire's performance to the S&P 500 during his tenure, because the broad-based index gets reduced to an illegible, flat line on the chart.

The stock has fallen about 5% since Buffett announced he will step down at the end of the year. Here's a look at how the company has done against the market in his six decades:

Exponential growth

Anyone lucky enough to invest $100 in Berkshire Hathaway shares in 1965 would have been sitting on a $5.5 million investment at the end of last year, according to Berkshire's calculations (public data is spotty before the 1980s because the shares didn't trade on an exchange).

The same sum invested in a yet-to-be-invented S&P 500 index fund would be worth around $39,000 today, dividend reinvestment included.

Berkshire has trounced the broader market no matter how you slice it. Annualized returns have been roughly double the S&P 500's since Buffett's takeover.

Buffett's 'four giants'

Buffett bought all sorts of businesses over the decades, but in recent years his conglomerate's profits were driven by what he called his four giants: an insurance empire, one of North America's largest railroads, an energy behemoth and a sizable stake in Apple.

A growing stash

Recently, Buffett has gotten more attention for holding cash than choosing stocks. Berkshire's cash pile is now bigger than the market capitalization of all but around the 25 largest companies in the S&P 500.

Cash and equivalents hit a record $333 billion in the first quarter, after adjusting for a payable. Berkshire generates lots of cash from its operating businesses and hasn't paid a regular dividend. Buffett has historically preferred to reinvest the money himself, though he has found a dearth of attractive opportunities recently.

"We only swing at pitches we like," Buffett said at last year's annual meeting. "It isn't like I've got a hunger strike or something like that going on. It's just that things aren't attractive."

(END) Dow Jones Newswires

May 09, 2025 09:00 ET (13:00 GMT)

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