Berkshire Hathaway's Performance Compared to the S&P 500
2906% Return Over the Past Century
Berkshire Hathaway (BRKB) stock has delivered an astounding 2906% return to investors over the past century. This impressive performance significantly outpaces the S&P 500 index, which has returned a respectable but less remarkable 1762% during the same period.
Tax Considerations
It is important to note that the S&P 500 returns are pre-tax, while Berkshire Hathaway's returns are after-tax. This distinction is significant because corporations like Berkshire Hathaway are subject to corporate income tax, which reduces their overall returns compared to individual investors.
Hypothetical Performance
If Berkshire Hathaway had hypothetically invested solely in the S&P 500 and paid the appropriate taxes, its returns would have been lower. However, the exact difference cannot be determined without considering the specific tax rates and investment decisions made by the company.
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