Berkshire Hathaway's 10-year average annual return (CAGR) for its Class B shares (BRK.B) has recently hovered around 14.5% to 14.8%, with specific figures varying slightly by exact date (e.g., 14.56% ending Jan 2026, while a 2014-2023 period saw 11.8%). This performance, while strong, has sometimes lagged behind the S&P 500 in shorter recent periods, though long-term performance remains excellent.
Ten Year Stock Price Total Return for Berkshire Hathaway is calculated as follows: Last Close Price [ 499.77 ] / Adj Prior Close Price [ 128.33 ] (-) 1 (=) Total Return [ 289.4% ] Prior price dividend adjustment factor is 1.00.
So, if you had invested in Berkshire Hathaway B a decade ago, you're probably feeling pretty good about your investment today. A $1000 investment made in November 2015 would be worth $3,797.30, or a gain of 279.73%, as of November 28, 2025, according to our calculations.
From 1965 to 2025, Warren Buffett has delivered 19.8% in annual returns. Almost double the S&P 500 over that time.
Warren Buffett has said that 90 percent of the money he leaves to his wife should be invested in stocks, with just 10 percent in cash. Does that work for non-billionaires? As far as asset allocation advice goes, 90 percent in stocks sounds pretty aggressive.
In 1957, Buffett, in a letter to limited partners, suggested that 70% of his company's capital was invested in stocks and 30% in corporate work-outs.
Building long-term wealth for retirement
But the overall stock market has earned an average rate of return of 10% per year over the past 50 years. Let's say you're contributing $100 per month while earning a 10% average rate of return. Over 10 years, that would add up to approximately $19,000 in total.
Yes, a 7% annual return is generally considered a realistic and good long-term average, especially when adjusted for inflation, mirroring historical S&P 500 performance after accounting for inflation, but it requires realistic expectations and can vary significantly year-to-year. While some aim for higher returns (like 10%), experts suggest 7% is a prudent benchmark for long-term growth, balancing the power of compounding with market volatility, according to sources like SoFi and SmartAsset.
Each decade, Buffett beat the benchmark at least six years -- and during one period he even outperformed in eight out of 10 years. In total, he's topped the S&P 500 40 out of 60 years. Now, let's consider how this relates to your investing strategy.
If you had invested $1,000 in the S&P 500 10 years ago, you'd have nearly $3,677 today. That's not a flashy overnight win, but it's the kind of steady growth that builds real wealth over time.
Warren Buffett's 8+8+8 rule is a guideline for a balanced life, suggesting you divide your day into three equal 8-hour segments: 8 hours for work, 8 hours for sleep, and 8 hours for yourself, focusing on rest, personal growth, relationships, and well-being to achieve sustainable productivity, rather than just endless hours. While a powerful concept for balance, some find it unrealistic due to commutes and chores, but it serves as a reminder to prioritize rest and personal investment alongside work.
If You Bought Tesla Stock 10 Years Ago
Currently, shares trade at $429.52, meaning your investment's value could have grown to $297,658 from stock price appreciation. Tesla has never paid dividends. If you had invested $10,000 in Tesla stock 10 years ago, your total return would have been 2,876.58%.
Investing $1,000 in Coca-Cola (KO) stock 20 years ago (around early 2006) would have grown to roughly $6,000 to $8,000 by late 2025, assuming reinvested dividends, but it significantly underperformed the S&P 500 index, which would have turned $1,000 into about $20,000 over the same period, highlighting that while Coca-Cola offers stability, diversification and broader market index funds often yield better long-term returns.
Over the past 12 months, BRK. B has underperformed S&P 500, delivering a return of +12% compared to the S&P 500's +19% growth.
Her expertise is in personal finance and investing, and real estate. Berkshire Hathaway does not pay a dividend to its shareholders because founder and CEO Warren Buffett believes that money can be better spent in other ways, such as reinvestment, stock buybacks, and acquisitions. Since Berkshire Hathaway (BRK.
While Berkshire's stock generated an annualized return of 19.8% during 1965-2025, compared with a 10.5% CAGR for the S&P 500 TR Index, its share price performance of 14.3% per year on average during the past decade was slightly behind the 14.8% CAGR posted by the index.
The researchers state that BlackRock, State Street, and Vanguard are the largest shareholders in 88 percent of S&P 500 firms.
20-Year Total Return Comparison (2003–2023)
From 2003 through 2023, Berkshire Hathaway (BRK) delivered about a 10.5% compounded annual gain (approximately +644% cumulative), slightly trailing the S&P 500's 11.1% annualized total return (about +720% cumulative).
A year later, when he was named Time's Person of the Year, Musk doubled down, saying, "I'm not Warren Buffett's biggest fan, frankly," as quoted in the report. The Tesla CEO described, his work, saying, "He sits there and reads all these annual reports, which are super boring." Musk added, "Does anybody want that job?
Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.
Here are the most effective ways to earn money and turn that 10K into 100K before you know it.
The 7-5-3-1 rule is a simple investing framework for mutual fund SIPs that builds long-term wealth. It means seven years of discipline, five categories of diversification, and overcoming three emotional hurdles. Add one annual SIP increase to accelerate growth.
There are two approaches you could take. The first is increasing the amount you invest monthly. Bumping up your monthly contributions to $200 would put you over the $1 million mark. The other option would be to try to exceed a 7% annual return with your investments.
The 7-3-2 rule is a wealth-building strategy highlighting compounding's power, suggesting it takes roughly 7 years to save your first significant amount (like a crore), then 3 years for the second, and only 2 years for the third, by increasing contributions and leveraging exponential growth as your money compounds faster. It emphasizes discipline in the initial phase, then accelerating savings as returns kick in, making later wealth accumulation quicker and more dramatic.
If you only have $100,000, it is not likely you will be able to live off interest by itself. Even with a well-diversified portfolio and minimal living expenses, this amount is not high enough to provide for most people.