Buffett’s formula is still working, if you know where to look
The annual meeting of Berkshire Hathaway
shareholders, presided over as always by its CEO and famed investor, Warren Buffett, came and went earlier this month. But we’re still being buffeted by critical commentary from pundits who say the legend’s legacy is “under pressure” due to Berkshire lagging behind the S&P 500
in recent years.
For example, Randy Brown, a contributor to Forbes, asked on May 2: “Is Buffett losing his edge?” The great investor may have good long-term results, wrote Jeff Cox on the CNBC website, “But the question is whether in the current climate of short-termism and the demand for immediate results Buffett would last in the business if he didn’t already have his reputation.”
The accompanying graph shows that the rise of Berkshire’s share price in the past 32 years has been nothing short of phenomenal. Buffett has done what few investors of any size have been able to accomplish: He has beaten the S&P 500, including dividends, for many decades and by many, many percentage points.