They may have other tax implications, and may not provide the same, or any, regulatory protection. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. No liability is accepted by the author, The Motley Fool Ltd or Richdale Brokers and Financial Services Ltd for any loss or detriment experienced by any individual from any decision, whether consequent to, or in any way related to the content provided by The Motley Fool Ltd the provision of which is an unregulated activity. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser. No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. Or I could simply invest £1 today, and hope that Buffett’s successors will carry on just as well. I suspect only a handful of investors per generation might have his brains, insight, persistence, and ability to detach emotionally.īut learning from him has helped me with my investments, for sure. Now, I see little chance of anyone replicating Warren Buffett’s long-term performance. It’s all about only buying shares in the very best companies, when they’re trading at attractive valuations. What should investors take from all of this?įor me, as I didn’t get the money, I take some valuable lessons. Someone who had £100 to spare in 1965 would still have been investing only the equivalent of £1,794 in today’s money.Īnd they’d now be sitting on Berkshire shares worth close to £3.8m. I might have had that much saved up.Īnyway, my single pound would have grown to nearly £38,000. I was six at the time, and inflation would make £1 back then worth £17.94 in 2022 money. What would that have done for me, had I invested just a pound at the start of 1965?Īs an aside, it’s not out of the question. Yep, that’s right, Buffett’s company saw its valuation rise by nearly 3.8 million percent. I bet you didn’t come up with a figure of 3,787,464%. So what do you think? A return of 10 times the index, perhaps 20 times? So, maybe, as much as half a million percent? The way compounding works, twice the annual return should generate a fair bit more than twice the total S&P return over the long term. The S&P’s average of 9.9% totted up to a total return of 24,708%.īut do you want to guess what the total Berkshire Hathaway share price gain might be over the same period? Seriously, go on, give it a go. So what do you think the total gains of the two were between the end of 1964 and the end of 2022? I’ll give you a clue. To give us something to compare with, the S&P 500 index, with dividends included, averaged 9.9% per year. Socks awayīetween 19, Berkshire Hathaway shares provided a compounded annual gain of 19.8% per year. The latest one might just blow your socks off. It tells us how the company has done over the year, and sums up its long-term performance. Every year, Buffett posts his famous letter to shareholders.
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