Berkshire Hathaway: Insights and Performance Overview
Long-Term Investment Success
Berkshire Hathaway, under Warren Buffett’s leadership, has proven to be a vastly successful investment vehicle, boasting an average compounded annual return of 19.7% from 1965 to 2025. This performance is significantly higher than the S&P 500’s 10.5% return over the same period, with Berkshire achieving an astronomical total gain of 6,099,294% compared to 46,061% for the index.
Transition in Leadership
With CEO Greg Abel taking the reins at the end of 2025, investors are closely watching his performance. So far, in 2026, Berkshire Hathaway’s stock has seen minimal movement, indicating potential challenges in replicating Buffett’s success.
Performance Snapshot
Yearly Returns Comparison from 2015 to 2026:
| Year | Berkshire Total Return | S&P 500 Total Return |
|---|---|---|
| 2015 | (12.5%) | 1.4% |
| 2016 | 23.4% | 12.0% |
| 2017 | 21.9% | 21.8% |
| 2018 | 2.8% | (4.4%) |
| 2019 | 11.0% | 31.5% |
| 2020 | 2.4% | 18.4% |
| 2021 | 29.6% | 28.7% |
| 2022 | 4.0% | (18.1%) |
| 2023 | 15.8% | 26.3% |
| 2024 | 25.5% | 25.0% |
| 2025 | 10.9% | 17.9% |
| 2026* | 0.47% | 13.5% |
(*As of August 31, 2026)
Conclusion: No Need for Panic
Despite the current flat stock performance and Berkshire Hathaway potentially facing its worst results in over a decade, the core investment thesis remains sound. As Abel emphasized, long-term shareholders focus beyond any singular CEO’s tenure.
Portfolio Strength
Berkshire Hathaway continues to possess a diverse portfolio, including major brands like Dairy Queen, GEICO, and a robust investment portfolio valued at $359.2 billion. The company maintains a solid cash position of $365.5 billion, ensuring liquidity for potential future investments.
Key Takeaway
Investors should retain their long-term perspective. Buffett’s legacy and the underlying strength of Berkshire Hathaway suggest that the company is well-positioned to navigate through short-term challenges.
