Reply To: Historical Performance of ITM Strategy

[George Henry]

Warren Buffett performance is almost 20% annual return for 60 years from 1965 to 2024 compared to 10% of SP500 index. If we take the rule of 72 / 20% is 3.6 years double.

1965: $1k
1968: $2k
1971: $4k
1974: $8k
1975: $10k

1985: $100k

1995: $1million

2005: $10million

2015: $100million

2025: $1billion

An initial $1,000 investment in Warren Buffett’s Berkshire Hathaway in 1965 would have grown astronomically by 2025, reaching tens of millions of dollars, thanks to its compound annual growth rate (CAGR) of around 20% (vs. ~10% for S&P 500), translating to a massive over 4 million percent gain in value by late 2024/mid-2025, showcasing the power of long-term value investing.
The Incredible Growth Story:
Early Days (1965): Buffett took control of the failing Berkshire Hathaway textile mill in 1965, with shares valued around $19.
Compounding Power: From 1965 to 2024/2025, Berkshire’s stock delivered massive returns, significantly outpacing the S&P 500.
Dollar Value (2024/2025): A $1,000 investment in 1965 would be worth over $40 million by late 2024 and potentially much more by 2025, with some reports citing figures like $44.7 million by 2024 end or even higher due to ongoing growth.
Key Takeaways from Buffett’s Strategy:
Buy Great Businesses: Focus on acquiring strong companies at fair prices, not just cheap stocks.
Long-Term Discipline: Avoid chasing fads (like crypto) and focus on enduring value.
Compounding: The consistent, long-term growth creates enormous wealth over decades.
In essence, that $1,000 grew into a staggering sum by buying wonderful businesses and holding them for decades, illustrating Buffett’s famous “buy and hold” philosophy.