Warren Buffett's reign as the iron man of the investment world may be peaking. Like a great Bordeaux vintage, say the '45, even the '59 or '61, he's likely to plateau and then follow a gentle downward arc over the next decade."
I wrote that in a column for Forbes published May 20, 1996. Berkshire Hathaway (nyse: BRKA - news - people ) shares were around $38,000. Now shares are at $90,000. The annual compound rate of gain is over 9%--respectable, but no barn burner. The S&P 500 Index, which Buffett compares himself with, also compounded at 9.2%.
I'm not convinced this is the relevant index for Buffett going forward. Too much of Berkshire's capital is outside the market currently, with currency plays, $40 billion in cash and plenty of capital in bonds from the insurance properties' float.
http://www.forbes.com/columnists/2005/12/21/buffett-berkshire-microsoft-1221opinion.html?partner=rss
I wrote that in a column for Forbes published May 20, 1996. Berkshire Hathaway (nyse: BRKA - news - people ) shares were around $38,000. Now shares are at $90,000. The annual compound rate of gain is over 9%--respectable, but no barn burner. The S&P 500 Index, which Buffett compares himself with, also compounded at 9.2%.
I'm not convinced this is the relevant index for Buffett going forward. Too much of Berkshire's capital is outside the market currently, with currency plays, $40 billion in cash and plenty of capital in bonds from the insurance properties' float.
http://www.forbes.com/columnists/2005/12/21/buffett-berkshire-microsoft-1221opinion.html?partner=rss
