Berkshire’s official 2025 shareholder letter shows that its per-share market value gained 6,099,294% between 1964 and the end of 2025. Over the same period, the S&P 500 returned 46,061% including dividends.
Applied to a hypothetical $100 investment, those returns produce a striking comparison:
| Investment | Approx. value by end-2025 |
|---|---|
| Berkshire Hathaway | $6.10 million |
| S&P 500 | $46,161 |
The difference is roughly 132 times.
Buffett’s Real Advantage Was Compounding
Berkshire did not beat the S&P 500 every year.
In fact, the S&P outperformed Berkshire in numerous periods, including 2025 itself, when Berkshire gained 10.9% versus 17.9% for the index.
The enormous gap emerged because relatively small differences compounded for decades.
From 1965 through 2025, Berkshire generated a 19.7% compounded annual gain, compared with 10.5% for the S&P 500.
Nine percentage points may not sound transformational over one year. Over 61 years, it becomes millions of dollars.
That record now carries extra significance as Berkshire enters its post-Buffett era. Buffett has stepped down as Berkshire chairman, with Greg Abel already running the company as CEO.
Can Berkshire Keep Compounding Without Buffett?
That is now the multibillion-dollar question.
Berkshire has accumulated an enormous liquidity cushion, with its cash position recently reaching historic levels. The company has also begun deploying more capital, including aggressively expanding its Alphabet position.
Buffett himself initiated Berkshire’s investment in Google parent Alphabet, later saying the stock could outperform many Wall Street picks.
