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How Buffett Beat the S&P 500 Index During Last Decade

Monday, 04 Jan 2010 02:33 PM

Warren Buffett's Berkshire Hathaway far outpaced the S&P 500 stock index during the decade of the 2000s, with its shares gaining 76.8 percent, a report on CNBC indicates.

The S&P declined 24.1 percent, excluding dividends, over the same ten-year period ending on Dec. 31, 2009, while Buffett beat the S&P in six of the last 10 calendar years.

“It's the S&P's biggest annual winning margin since the tech bubble days of 1999 when the benchmark beat Berkshire by over 39 percentage points. Berkshire won by double-digits the next three years,” reports CNBC.

Berkshire did manage a modest gain of 2.7 percent this past year, but the S&P surged 23.5 percent, excluding dividends, the news channel reports.

How did Buffett accomplish this stunning success over a 10-year time period? He committed $26 billion to a railroad takeover and another $5 billion in Goldman Sachs, among other savvy bets.

Buffett has led Berkshire as chairman for more than four decades. Berkshire beat the index in 15 of the last 22 years, reports Business Week.

Buffett, whose acquisitions and stock picks propelled Omaha, Neb.-based Berkshire’s 30-fold increase in 20 years, is finding it harder to duplicate those returns.

But TheStreet.com reports that it’s not too late for regular investors to capitalize on the savvy of Buffett.

It’s been just a year since Buffett purchased $5 billion in Goldman stocks, and he has netted $3 billion in stock market gains.

The investment in Goldman has gained more than 42 percent for Buffett, as the financial crisis weeded out some of Goldman’s biggest competitors, clearing a pathway for the venerable Wall Street firm once again.

“Survival of the fittest is still the rule,” notes a report in theStreet.com. “It’s not too late” for small investors to buy Goldman, and ride the continuing wave, the report adds.

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Warren Buffett's Berkshire Hathaway far outpaced the S P 500 stock index during the decade of the 2000s, with its shares gaining 76.8 percent, a report on CNBC indicates. The S P declined 24.1 percent, excluding dividends, over the same ten-year period ending on Dec. 31,...
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