Berkshire Hathaway Outperforms Market Despite Recent Headwinds
Warren Buffett's Berkshire Hathaway has delivered a market-beating performance over the past five years, with a $1,000 investment in August 2020 now worth $2,221—a 17.3% annualized return. This outpaces the S&P 500's 13.8% growth (15.5% with dividends). The conglomerate's value-oriented approach has proven resilient even as investors shifted toward AI-driven tech stocks.
Recent underperformance since May, coinciding with Buffett's retirement announcement and a rotation into growth stocks, hasn't erased Berkshire's lead. The results silence critics who questioned Buffett's strategy during earlier periods of lagging returns.