Is Berkshire Hathaway Stock a Millionaire Maker?

If you follow the stock market, then you've likely heard of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). It's run by none other than Warren Buffett, arguably the greatest investor of all time, and it's one of the largest conglomerates in the world. Furthermore, the stock has widely outperformed the stock market over many decades. Between 1965 and 2024, Berkshire stock generated compound annual gains of 19.9%. Meanwhile, the broader benchmark S&P 500 has generated compound annual gains of 10.4%, including dividends (Berkshire doesn't pay dividends). So is Berkshire Hathaway's stock a millionaire maker?Interestingly, Buffett in the past has spoken about how he's not a fan of diversity when it comes to investing. "Diversification is protection against ignorance," Buffett has said. "It makes little sense if you know what you are doing." But Berkshire Hathaway's stock offers investors a great deal of diversification, primarily because it has built out several strong powerhouse businesses.Berkshire has a world-class insurance business and owns the large U.S. insurance company, GEICO. The company also generates significant earnings from owning the Burlington Northern Santa Fe Railroad, its slate of energy assets, and businesses in manufacturing, services, and retail. Berkshire also can generate significant earnings from investment gains in its huge $258 billion equities portfolio.Continue reading

Apr 15, 2025 - 10:12

Is Berkshire Hathaway Stock a Millionaire Maker?

If you follow the stock market, then you've likely heard of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). It's run by none other than Warren Buffett, arguably the greatest investor of all time, and it's one of the largest conglomerates in the world. Furthermore, the stock has widely outperformed the stock market over many decades. Between 1965 and 2024, Berkshire stock generated compound annual gains of 19.9%. Meanwhile, the broader benchmark S&P 500 has generated compound annual gains of 10.4%, including dividends (Berkshire doesn't pay dividends). So is Berkshire Hathaway's stock a millionaire maker?

Interestingly, Buffett in the past has spoken about how he's not a fan of diversity when it comes to investing. "Diversification is protection against ignorance," Buffett has said. "It makes little sense if you know what you are doing." But Berkshire Hathaway's stock offers investors a great deal of diversification, primarily because it has built out several strong powerhouse businesses.

Berkshire has a world-class insurance business and owns the large U.S. insurance company, GEICO. The company also generates significant earnings from owning the Burlington Northern Santa Fe Railroad, its slate of energy assets, and businesses in manufacturing, services, and retail. Berkshire also can generate significant earnings from investment gains in its huge $258 billion equities portfolio.