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At the company's annual shareholders meeting over the weekend, Berkshire Hathaway (BRK-B, BRK-A) chairman and CEO Warren Buffett, 94, announced his plans to step down as chief executive at the end of 2025, to be succeeded by Berkshire Hathaway Energy Chair Greg Abel.
Berkshire stock has been falling in Monday's trading session following this news.
Yahoo Finance senior markets reporter Josh Schafer comes on Market Domination to evaluate how Berkshire Hathaway stock has outperformed the S&P 500 (^GSPC) and the firm's adaptability in shifting its holdings in its investment portfolio.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Berkshire Hathaway shares sliding as CEO Warren Buffett said he plans to step down as CEO at the end of 2025. He's still gonna be, um, chair of the company, though. So we're taking a look at how shares have outperformed the S&P 500 over the decades. Yahoo finances Josh Schafer joining us now with more and, as we just heard Tim say, patience pays off.
Patient investors definitely pays off. I think Warren Buffett is definitely considered a patient investor. And when you take a look at how Berkshire Hathaway shares have performed since 1965 against the S&P 500, you certainly see that patients pays, right? Berkshire Hathaway stock has increased over five million percent going back to 1965. That's compared to the 39,000% that you see for the S&P 500. I mean, the chart is candidly just pretty staggering when you take a look at the difference in performance there. And I think I was looking through also just the different years that Berkshire has either outperformed the market, underperformed the market, kind of trying to get some takeaways from within that. And what I found interesting within that report within their they include this in their annual shareholder letter. And within that you see that most times that the S&P 500 has fallen, I counted about 13 going back to 1965. Berkshire has only underperformed the S&P 500 in those years twice. So sort of my takeaway from that being, speaking of patients, one thing Buffet's always done is he's not always fully invested, right? He was talking a lot about this on Saturday, not the need to not always be putting all of your money to work, which is not necessarily how most fund managers would operate. They don't need you don't give Berkshire a pile of cash and they have to go invest it for you, right? He's waiting and choosing good investments and choosing the right time to buy a company. And I think over time, that's paid off. And then also not selling winners, right? He's held on to American Express forever. He's held on to Coca-Cola forever. Yes, he started selling Apple, but he held on Apple for about a decade. And so just the compounding nature of holding on to those stocks for a long period of time shows that picking stocks, to some extent, can work, I guess, at least if you're Warren Buffett.
If you're really good at picking stocks.
If you're Warren Buffett, If you're the best investor ever, then you can do it. Yeah.