Berkshire Hathaway—Warren Buffett’s legendary conglomerate—has long been viewed as a pillar of stable, long-term investment. While many investors flock to tech stocks or chase quick returns, Berkshire has consistently rewarded those who embrace patience. But just how rewarding has that patience been over the past decade?
Let’s break it down: If you had invested $10,000 in Berkshire Hathaway Class B shares (BRK.B) exactly 10 years ago, on May 8, 2015, your investment would now be worth around $36,000, based on the stock’s recent closing price of approximately $413 per share as of May 8, 2025.
An Impressive Return Without the Flash
While Berkshire Hathaway may not generate the hype of high-flying tech names like Nvidia or Tesla, it has quietly outperformed much of the market over the long term. The 10-year return of roughly 260% translates to a compound annual growth rate (CAGR) of around 13.7%—an impressive figure for a company of its size and conservatism.
By comparison, the S&P 500 returned about 190% over the same time frame, or about 11.2% annually. That means Berkshire has outpaced the overall market, all without relying on speculative trends or volatile growth.
What’s Driving the Growth?
So, what has powered Berkshire’s solid returns? The answer lies in a carefully crafted mix of:
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Equity investments: Major stakes in companies like Apple (worth over $150 billion), Bank of America, American Express, and Coca-Cola have yielded strong long-term gains. Berkshire’s stake in Apple alone represents about half of its entire publicly traded portfolio.
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Wholly owned businesses: Subsidiaries like GEICO, BNSF Railway, Berkshire Hathaway Energy, and a vast collection of manufacturing and consumer goods companies provide stable, consistent cash flow. These help cushion the business during market downturns.
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Disciplined capital allocation: Buffett and Vice Chairman Greg Abel—his hand-picked successor—have maintained a conservative financial strategy, holding large cash reserves and avoiding overpaying for acquisitions.
No Dividends, Yet Still a Favorite
Unlike many major stocks, Berkshire Hathaway doesn’t pay a dividend. Instead, it reinvests profits into the company or uses excess cash for stock buybacks—both of which have helped increase shareholder value over time.
Despite the lack of dividends, many investors remain loyal due to Berkshire’s reliability and Buffett’s proven philosophy of long-term value investing.
Looking Ahead: Life After Buffett
In recent years, investors have wondered how Berkshire will fare after the eventual retirement or passing of Warren Buffett, who turned 94 in August 2024. The good news is that succession plans are in place, with Greg Abel set to become CEO and Todd Combs and Ted Weschler continuing to manage the growing investment portfolio.
Buffett has reassured shareholders that Berkshire’s decentralized structure and deep bench of capable leaders will allow the company to thrive even after his departure.
The Bottom Line
If you had put $10,000 into Berkshire Hathaway stock in 2015, you’d be sitting on over $36,000 today—a powerful example of the benefits of long-term investing, compounded returns, and staying the course with a trusted company.
While Berkshire may not offer the thrills of rapid growth stocks, it continues to deliver solid results rooted in sound judgment, resilience, and timeless business principles.
