Has Warren Buffett outperformed the market indexes?
Warren Buffett's performance relative to market indexes has varied over different time periods:
Long-term Performance
Over the long term, Warren Buffett has significantly outperformed market indexes. From 1965 to 2024, Berkshire Hathaway achieved an average annual return of 19.9% over 59 years, resulting in a total gain of 5,502,284%. In comparison, the S&P 500 index posted an average annual return of 10.4% during the same timeframe.
Recent Performance
In recent years, Buffett's performance has been mixed:
2025 (Year-to-date): Berkshire Hathaway stock has jumped 16% while the S&P 500 has dropped 2%
2024: Berkshire outperformed the S&P 500, with returns of 25.5% compared to 25%.
2022: Berkshire's stock increased by 4% while the S&P 500 fell by 18%.
2009-2023: Berkshire's annual return averaged 13%, compared to 15% for the S&P 500.
Market Downturns
Buffett's approach has shown particular strength during market downturns. Under his leadership, Berkshire stock "substantially outperformed" the market in 10 of the 12 years the S&P declined.
Conclusion
Although there have been periods where Buffett has underperformed, his long-term track record and performance during market downturns demonstrate his ability to outperform market indexes over extended periods. However, as Berkshire Hathaway has grown to a $1 trillion valuation, Buffett has acknowledged that matching past growth rates has become more challenging.
N. Russell Wayne
203.895.8877
www.soundasset.blogspot.com
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