THE BASIS POINT

If 1 Chart Revealed Warren Buffett’s 6-Decade Secret Sauce, This Is It

 

The link below has 5 charts on Warren Buffett’s best-of-all-time investing track record. I want to call out 2 of these charts.

The chart below shows Berkshire Hathaway’s 19.9% annualized returns from 1965 to 2024. This is a 5,490,338% cumulative total return, which is hard to even fathom.

Warren Buffett returns vs. iconic mutual funds 1965-2024 - Bloomberg via The Basis Point

===

Besides Buffett himself, this next chart below might just be the secret sauce.

It shows Berkshire Hathaway’s cash allocation from 1987 to 2025, which is a good visual of Buffett’s legendary patience.

Warren-Buffetts-Berkshire-Hathaway-cash-allocation-1987-to-2025-Bloomberg-via-The-Basis-Point

===

Holding cash for the right times aligns with buying or investing in companies for the right reasons.

These behaviors are of course born from working in general for the right reasons.

Like Buffett, his successor Greg Abel doesn’t NEED the money.

But a lot of Buffett’s answers to shareholder questions this weekend discussed the joy of working on something you love with people you appreciate.

It was very moving to hear Buffett talk about his friend Charlie, and to see Abel so palpably embody the Berkshire/Buffett way.

Over 6 decades of investing, Warren Buffett left peers and the S&P 500 in the dust. Here are 5 charts from money manager Nir Kaissar that summarize it well.

___
Check It Out:

Buffett’s Astonishing Track Record In 5 Charts (Bloomberg)

WANT TO OUTSMART YOUR FRIENDS?

GET OUR NEWSLETTER

Comments [ 0 ]

WHAT DID WE MISS? COMMENT BELOW.

All comments reviewed before publishing.

thirteen − six =

NEED CLARITY IN ALL THIS CONFUSION?

GET OUR NEWSLETTER.

x