After posting double-digit gains during both 2023 and 2024, the S&P 500 and Nasdaq Composite have gotten off to an underwhelming start this year. As of this writing, the S&P 500 is down 3% on the year while the tech-heavy Nasdaq index has fallen by a more pronounced 7%.
Many investors pay close attention to whatever Warren Buffett says. The billionaire's conglomerate, Berkshire Hathaway (BRK.A -1.45%) (BRK.B -1.54%), has outperformed the market by a wide margin since he took it over in 1965, and he shares advice freely with his shareholders and followers.
There are well-heeled stock investors who believe in holding a tightly concentrated portfolio, and those more comfortable with a long list of diversified titles. Judging by the charity-focused investment vehicle that bears his surname, Microsoft (MSFT -2.96%) co-founder and former CEO Bill Gates belongs firmly in the first camp.
Over the past five years, Warren Buffett's returns have beaten the S&P 500 and the Nasdaq Composite even as Berkshire keeps hundreds of billions in cash and Treasuries.
Arguably no money manager commands the attention of investors on Wall Street quite like Berkshire Hathaway's (BRK.A 0.26%) (BRK.B 0.30%) billionaire CEO Warren Buffett. Since the aptly named "Oracle of Omaha" became CEO in the mid-1960s, he's overseen a jaw-dropping aggregate return in his company's Class A shares (BRK.A) that surpassed 6,400,000%, as of the closing bell on March 25.
There's no denying that when Warren Buffett speaks, investors tend to listen. That's the attention you receive when you've built a trillion-dollar business -- Berkshire Hathaway (BRK.A 0.95%) (BRK.B 0.72%) -- and had decades of sustained success.
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