Berkshire Hathaway's Stock Returns: The Impact of Easy Money

Subheading: A Look at the Long-Term Performance of Warren Buffett's Investment Company

Easy Money and Berkshire Hathaway's Stock Price

The recent years of easy money policies appear to have had a negative impact on the stock price returns of Berkshire Hathaway. From 1965 to 2022, Berkshire Hathaway stock averaged a 20% compound annual growth rate, which compares to a 9.9% annualized return for the S&P 500 during the same period.

Comparison to the S&P 500

In 2022, Warren Buffett's Berkshire Hathaway outperformed the S&P 500, gaining 33% for investors compared to the S&P 500's loss of 18.1%, with dividends reinvested. However, over the long term, Berkshire Hathaway stock has generated a compound annual return of just over 20% from 1965 to 2021, while the S&P 500's compound annual return for the same period was 10.5%.

Factors Contributing to Underperformance

There are a number of factors that may have contributed to Berkshire Hathaway's underperformance in recent years. One factor is the الشركة's heavy exposure to value stocks, which have underperformed growth stocks in recent years. Another factor is the company's large cash position, which has not generated significant returns in a low-interest-rate environment.