Berkshire Hathaway (BRK.A 0.02%) (BRK.B 0.09%) has been one of the most successful stock investments of all time. From 1965 through the end of 2023, it produced a 4,384,748% gain for investors. And that isn’t a typo.
However, it isn’t just long-term investors who have created wealth through Berkshire stock. Plus, many people reading this aren’t old even enough to have bought Berkshire stock in the 1960s. But what if you decided to buy shares of the Warren Buffett-led conglomerate 30 years ago?
I won’t keep you in suspense. If you had invested $20,000 in Berkshire Hathaway 30 years ago, which was roughly the price of one Class A share, your single share would be worth about $682,000, as of this writing.
An important investing lesson
Here’s one key takeaway. By 1994, Warren Buffett had already been at the helm of Berkshire Hathaway for three decades, and his investors had already been handsomely rewarded. In fact, Berkshire’s stock was worth about $19 per share when Warren Buffett took control in 1965. By the 1994 holiday season, shares were worth about $20,150 — a more than 1,000x return.
This is a great example of one of the most valuable investing concepts to learn. Just because a stock has performed well (even exceptionally well) doesn’t mean it can’t continue to beat the market for many more years. Of course, Berkshire producing 1,000x returns from here is a mathematical impossibility, as that would make it about 10 times as large as the entire world’s GDP, but it could certainly continue to outpace the overall stock market.
Matt Frankel has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
