Berkshire Hathaway under Warren Buffett has outperformed the S&P 500 since 1965 by acquiring successful insurance and energy companies, expanding into various industries, and building a stock portfolio worth $285 billion today. A $10,000 investment in Berkshire 30 years ago would have grown to $341,000.

Buffett’s strategy focuses on operating earnings growth rather than net income, with a compound annual growth rate (CAGR) of 16% from 1994 to 2024. Berkshire’s insurance businesses, like GEICO and Chubb, accounted for 48% of its operating earnings in 2024. The company’s success was driven by Buffett and Charlie Munger, but their successors may face challenges.

Berkshire’s long-term success hinges on its new leadership’s ability to maintain Buffett’s balanced strategy of growing core businesses and investing in undervalued stocks. A $10,000 investment in Berkshire with a 10% CAGR over 30 years could grow to $174,500, but a 15% CAGR would yield over $662,100. Investing in Berkshire now could still provide long-term gains.

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Read more at Nasdaq: Could Buying Berkshire Hathaway Stock Today Set You Up for Life?