It is common knowledge that Warren Buffett’s Berkshire Hathaway has outperformed the equity markets by a wide margin. The degree of outperformance appears especially impressive if it is adjusted for inflation. Since 1964, the value of Berkshire Hathaway increased in real terms at an annual rate of 16.8%, while the S&P 500 Total Return managed only 5.5% p.a.
Source of data: Berkshire Hathaway annual report 2014; US Department Of Labor, Bureau of Labor Statistics
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