Berkshire Hathaway (BRK.B) chairman Warren Buffett is regarded as among the best investors of all time. The conglomerate’s stock has risen at a CAGR of 19.8% since inception, which is almost twice the 10.8% return that the S&P 500 Index ($SPX) (with dividends) has delivered over the period.
If ever someone had any doubt about why compound interest has been termed the “eighth wonder of the world," the cumulative returns of Berkshire Hathaway stock should clear up any confusion. The stock has gained 4,384,748% from 1965 through 2023, as compared to the S&P 500’s 31,223% gain. That’s what investing in quality stocks for the long term – something that Buffett has practiced and preached over the years – can do for your wealth.
