4 Words From Warren Buffett Offer a Grim Reality for Wall Street and Investors
The Oracle of Omaha's long-term vision and his insatiable desire for value don't always align.
There's arguably not a money manager on Wall Street who garners attention from investors quite like Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Warren Buffett. The big reason why... he's overseen a cumulative return in excess of 6,100,000% in his company's Class A shares (BRK.A) since taking the reins six decades ago. This is more than 150 times the total return, including dividends, of the benchmark S&P 500 (SNPINDEX: ^GSPC) over the same span.
The Oracle of Omaha is someone who has a keen understanding of economic and stock market cycles.
He and his team, which had included right-hand man Charlie Munger until his passing in November 2023, recognize that periods of economic growth and bull markets on Wall Street last significantly longer than economic recessions and bear markets. As such, they've always angled Berkshire Hathaway's investment portfolio and owned assets to take full of advantage of these lengthy periods of growth and upside. This horizon-looking approach is a big reason Buffett has been such a successful investor.
