Overview

• Fresh long-horizon analysis shows Berkshire’s average annual return over the past two decades at about 10% versus 10.7% for the S&P 500 including dividends.
• Excluding Apple, a simulated Berkshire portfolio returned 7.3% per year, and Apple once accounted for just over 50% of equity holdings in Q2 2023.
• Berkshire’s size—now valued above $1 trillion with roughly $350 billion in cash—limits the ability to pursue smaller, high‑alpha deals that once drove outperformance.
• Factor rotation favoring growth over classic value, greater market efficiency and limited exposure to newer tech sectors have weighed on relative results.
• The conglomerate remains durable in downturns and Buffett’s direct day‑to‑day influence has likely eased with succession planning, so mimicking Berkshire’s picks no longer guarantees excess returns.