BRK.B stock is up over 30% in the past year, and saw a
record high in May.
Berkshire Hathaway stock shows the potential of long-term
investing and magic of compound interest.
Despite potential short-term volatility in Q4, buy-and-hold
investors could regard any further short-term decline in BRK.B shares as an
opportune entry point
Investors in Berkshire Hathaway B (NYSE: BRKb ) shares have
enjoyed a robust 2021. BRKb stock is up almost 19% in 2021 and 30.6% in the
past 12 months. The shares hit an all-time high (ATH) of $295.08 in May.
But since then, they've lost about 6.5%.
The 52-week price range has been $197.81 - $295.08, while
the company’s market capitalization (cap) stands at $416.3 billion.
Warren Buffett, one of the most successful investors of all
time, who is sometimes referred to as the 'Oracle of Omaha,' due to his
investing skill and prescience, is the Chairman and CEO of Berkshire Hathaway.
He purchased the Nebraska-based company in 1965 and over the past almost-six
decades, Buffett and his long-time partner Charlie Munger have overseen the
spectacular growth of Berkshire Hathaway, turning the former textile
manufacturer into the world's largest diversified holding company.
Wall Street pays close attention to Buffett’s views on the
economy and broader markets. Thus, his annual shareholder letters receive close
attention. Through them, investors can also derive a clear understanding of how
Berkshire Hathaway stock has fared over the years.
Between 1965 and 2020, Berkshire Hathaways’ compounded
annual gain was 20.0%. For the the S&P 500 index, the return was 10.2%
(with dividends included). Put another way, the proverbial $1,000 invested in
Berkshire Hathaway in 1965 would now have grown to around $28 million.
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