Over the long term, stocks deliver the highest returns of any asset class - and patient investors who buy and hold quality companies run by efficient management tend to generate handsome returns. A pertinent example of long-term investing would be Warren Buffett, who even at the age of 93 has almost all of his wealth tied up in Berkshire Hathaway (BRK.B) shares, and says his favorite holding period is “forever.”
Accounting for the impact of compound interest, which has been described by some investors as the “eighth wonder of the world," Berkshire Hathaway stock rose 3,787,464% from 1965 through 2022, compared to the 24,708% gains delivered by the S&P 500 ($SPX), after accounting for dividends.
