Real value generator

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.

BH_inflation_adj.

Source of data: Berkshire Hathaway annual report 2014; US Department Of Labor, Bureau of Labor Statistics

Tagged with: ,
Posted in Financial Markets, Long-Term Charts

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

“With a Steady Hand”
Welcome to the weblog of Karl-Heinz Thielmann, fund manager, financial analyst, economist and dedicated long-term investor.

Enter your email here to follow "With a Steady Hand".

%d bloggers like this: