Core Insights - Warren Buffett will retire from leading Berkshire Hathaway at the end of this year after a long tenure since 1965, marking a significant transition for the company and the investing world [1] Performance Overview - Berkshire Hathaway has seen a year-to-date increase of just over 9% as of December 19, 2023, which is underperforming the S&P 500's increase of around 16% [2] - Historically, Berkshire Hathaway has underperformed the S&P 500 only 20 times since 1965, indicating its strong long-term performance [4][6] Historical Performance Data - In 2023, Berkshire Hathaway's return was 15.8%, while the S&P 500 returned 26.3% [5] - Total gains for Berkshire Hathaway from 1965 to 2024 are over 5,500,000%, compared to the S&P 500's 39,000%, reflecting an annual average return of 19.9% versus 10.4% for the S&P 500, including dividends [9] Future Outlook - Incoming CEO Greg Abel will inherit a substantial cash reserve, positioning the company well for future opportunities [6] - Berkshire Hathaway's investment strategy is designed for sustainability rather than high growth, which may lead to underperformance during market mania phases, such as the current interest in artificial intelligence [8] - Despite recent underperformance, the company is well-structured for future success, alleviating concerns for investors [10]
Berkshire Hathaway Is on Pace to Do Something It Hasn't Done Much Since 1965. Should Investors Be Worried Heading Into 2026?