Ever wondered what it’d feel like to hop on a winning stock at just the right moment? Picture this: a decade ago, you tucked $1,000 into a company known for its steady hand and sharp instincts. Fast forward to today, and that modest bet has ballooned into something far more impressive. That’s the story of investing in Berkshire Hathaway, the conglomerate led by the legendary Warren Buffett. But with Buffett stepping down and markets shifting, is this still a golden ticket for your portfolio? Let’s dive into the numbers, the legacy, and what it all means for you.
The Power of Berkshire Hathaway’s Growth
Berkshire Hathaway isn’t just a company—it’s a juggernaut. From its humble roots as a struggling textile business, it’s grown into a $1.2 trillion empire, snapping up everything from insurance giants to ice cream chains. The secret sauce? A knack for buying high-quality businesses at reasonable prices and holding them for the long haul. Over decades, this strategy has turned small stakes into massive fortunes. But how does it stack up for someone who jumped in more recently?
Buy wonderful businesses at fair prices, and let time do the heavy lifting.
– A seasoned investor’s mantra
Let’s break it down. If you’d invested $1,000 in Berkshire Hathaway’s more accessible Class B shares a decade ago, you’d be sitting on a tidy sum today. The stock’s steady climb has outpaced many competitors, even in turbulent times. But past performance isn’t a crystal ball. To understand if Berkshire is still a smart play, we need to look at its returns, its risks, and what’s next.
How Much Has Berkshire Grown?
Investing is all about numbers, so let’s get to the good stuff. Based on the closing price of Berkshire’s Class B shares on May 8, 2025, here’s what your $1,000 would be worth today, depending on when you bought in:
- 1 year ago: Your $1,000 would now be worth $1,263, a 26.3% gain.
- 10 years ago: That same $1,000 would have grown to $3,461, a whopping 246.1% increase.
- 20 years ago: If you’d invested back then, your $1,000 would now be $9,178, an 817.8% surge.
These numbers are eye-popping, especially when you compare them to the broader market. Over the same 10-year period, the S&P 500 delivered solid but less dramatic returns. Berkshire’s ability to beat the market isn’t just luck—it’s the result of careful choices and a long-term mindset. But here’s the kicker: those gains didn’t come without bumps along the way.
What Drove Berkshire’s Success?
Berkshire’s growth isn’t about flashy tech startups or chasing trends. It’s about owning businesses that churn out steady profits year after year. Think railroads, energy companies, and insurance firms—industries that aren’t sexy but are built to last. The company’s diversified portfolio acts like a safety net, cushioning it against market swings.
Take its insurance operations, for example. They generate massive cash flows, which Berkshire reinvests into other businesses or stocks like Coca-Cola and Apple. This compounding machine has been running for decades, and it’s why a $1,000 investment from 20 years ago is now worth nearly 10 times as much. In my view, there’s something almost poetic about this slow-and-steady approach—it’s like planting an oak tree and watching it grow stronger every year.
The Buffett Factor: A Legacy of Discipline
You can’t talk about Berkshire without mentioning Warren Buffett. At 94, he’s been the heart and soul of the company since 1965. His philosophy—buy quality, hold forever—has turned Berkshire into a Wall Street legend. According to recent reports, the stock has delivered a mind-blowing 5,502,284% gain since he took the helm, compared to the S&P 500’s 39,054%.
Investing is simple, but not easy. It takes patience and a cool head.
– A veteran financial advisor
Buffett’s knack for spotting undervalued companies is unmatched. But with his retirement looming, some investors are nervous. Can Berkshire keep its magic without him? The company’s recent earnings offer a clue. First-quarter operating earnings in 2025 dipped 14% to $9.64 billion, partly due to weaker insurance profits. Earnings per Class B share hit $4.47, missing Wall Street’s $4.72 forecast. Not exactly a home run, but Berkshire’s long-term track record suggests it can weather these hiccups.
Is Berkshire Still a Safe Bet?
Here’s where things get tricky. Berkshire’s size—it’s worth $1.2 trillion—makes it harder to grow at the same pace as smaller, nimbler companies. Plus, Buffett’s exit raises questions about leadership. Will his successors match his instincts? The company’s diversified holdings and cash reserves (over $150 billion) provide a buffer, but no investment is bulletproof.
Let’s not kid ourselves: putting all your eggs in one basket, even a basket as sturdy as Berkshire, is risky. Financial planners hammer this point home, and I’ve seen it in action. A friend of mine sank a big chunk of his savings into a single stock, only to watch it tank during a market dip. Diversification—spreading your money across index funds, bonds, and other assets—is the safer play for most of us.
| Investment Period | Return on $1,000 | Percentage Gain |
| 1 Year | $1,263 | 26.3% |
| 10 Years | $3,461 | 246.1% |
| 20 Years | $9,178 | 817.8% |
The table above paints a clear picture: Berkshire’s returns are stellar, but they’re not guaranteed to continue at this pace. Market conditions, leadership changes, and global events like tariffs or recessions could shake things up.
Should You Invest in Berkshire Today?
So, what’s the verdict? Berkshire Hathaway remains a powerhouse, but it’s not a slam-dunk for everyone. If you’re a long-term investor with a stomach for occasional dips, it could be a solid addition to your portfolio. Its diversified holdings and cash hoard make it more stable than most individual stocks. But if you’re looking for explosive growth, you might want to explore tech stocks or emerging markets instead.
Here’s my take: Berkshire’s strength lies in its simplicity. It’s not chasing the latest crypto craze or AI hype. It’s about owning businesses that people need, day in and day out. That’s reassuring in a world where markets can feel like a rollercoaster. Still, I’d never bet the farm on one stock, no matter how impressive its track record.
Diversification: The Golden Rule
Let’s zoom out for a second. Investing isn’t about finding the next Berkshire Hathaway—it’s about building a portfolio that can weather storms. Financial experts swear by index funds for a reason: they’re cheap, they’re diversified, and they track the market’s overall growth. Over time, they often outperform individual stocks with less stress.
- Spread your investments: Mix stocks, bonds, and real estate to reduce risk.
- Think long-term: Short-term market dips are noise; focus on decades, not months.
- Rebalance regularly: Adjust your portfolio to stay aligned with your goals.
Berkshire fits into this strategy as a strong, stable piece of the puzzle—but it shouldn’t be the whole picture. I’ve always found that a mix of index funds and a few carefully chosen stocks strikes the right balance. It’s like cooking: a pinch of spice is great, but you don’t want to overdo it.
What’s Next for Berkshire?
With Buffett stepping down, all eyes are on Berkshire’s future. The company has a deep bench of talent, and its decentralized structure means it doesn’t rely on one person’s genius. Still, transitions are tricky. Will Berkshire keep snapping up undervalued gems? Or will its size finally slow it down? Only time will tell.
One thing’s certain: Berkshire’s cash pile gives it firepower to seize opportunities, whether it’s buying a new business or riding out a market crash. For investors, that’s a comforting thought. But don’t expect the same meteoric gains as in the past. The company’s sheer scale makes double-digit growth tougher.
Final Thoughts: A Timeless Lesson
Berkshire Hathaway’s story is more than just numbers—it’s a masterclass in patience, discipline, and trusting the process. A $1,000 investment 10 years ago would be worth $3,461 today, and that’s nothing to sneeze at. But the real takeaway? Investing isn’t about chasing unicorns; it’s about making smart, steady choices and letting time work its magic.
The stock market is a device for transferring money from the impatient to the patient.
– A timeless investing proverb
So, is Berkshire still a smart pick? For the right investor, absolutely. Just don’t forget to diversify, keep an eye on market trends, and stay calm when things get bumpy. After all, building wealth is a marathon, not a sprint. What’s your next move?
