Overview
- Over more than six decades at Berkshire Hathaway, Buffett delivered nearly 20% compound annual growth, roughly double the S&P 500’s rate.
- His earlier partnership, Buffett Limited Partners, produced annualized returns above 30% from 1957 through 1968.
- In a 1966 letter, he wrote that concentrating heavily in the best opportunities may lead to occasional very sour years but can widen long‑term superiority.
- Berkshire did not outperform the S&P 500 every year, yet the strategy generated substantial long‑term wealth despite return variability.
- Entering 2026, investors are advised to review concentrated holdings and keep positions only if they offer higher expected returns than alternatives or reduce overall portfolio volatility, guidance that applies to both stock pickers and index investors.