Group 1 - Berkshire Hathaway has a recent market value of approximately $1 trillion and is considered a classic blue chip stock, although it does not currently pay dividends [2] - The company has a significant cash reserve of $382 billion, leading to speculation that the new CEO, Greg Abel, may introduce a dividend in the future [2] - Investing in Berkshire Hathaway provides ownership in various businesses, including GEICO, Benjamin Moore, See's Candies, and BNSF railroad, as well as a stake in its stock portfolio featuring major companies like Apple and Coca-Cola [2] Group 2 - Historical average annual returns for Berkshire Hathaway are as follows: 1.60% over the past year, 15.53% over the past three years, 15.91% over the past five years, 13.90% over the past ten years, and 12.49% over the past fifteen years [3] - A conservative estimate suggests an average total annual return of 11% over the next decade, which would increase a $500 investment to $1,420 [6] - Projected values of a $500 investment at various growth rates after ten years are: $984 at 7%, $1,079 at 8%, $1,184 at 9%, $1,297 at 10%, $1,420 at 11%, $1,553 at 12%, $1,697 at 13%, $1,854 at 14%, and $2,023 at 15% [6]
What Happens if You Invest $500 in This Stock and Hold It for 10 Years? (Hint: Warren Buffett Will Be Very Interested in the Answer)