12:46 - 5.03.2025

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March 5, Fineko/abc.az. Why is the famous investment genius Warren Buffett called the "oracle of Omaha"? The reason for this is very simple: he achieved incredible success in 1965, when he began managing Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B).

ABC.AZ reports that under his leadership, company's total profitability was 5.5 million percent, representing approximately 20% annual growth.

For comparison, over the same period, index S&P 500 grew only by 39.054 percent, which is equivalent to 10.4 percent year-on-year.

If an investor had invested only $10,000 in Berkshire Hathaway in 1965, that investment would be worth $550.2 million today. On the other hand, an investor who invested the same amount in the S&P 500 would receive a total of $3.9 million. This is also a pretty good indicator, but it cannot compare with half a billion dollars.