warren buffet has an average annualized ~20% return for over the last 5 decades.
Ten Year Stock Price Total Return for Berkshire Hathaway is calculated as follows: Last Close Price [ 453.56 ] / Adj Prior Close Price [ 149.17 ] (-) 1 (=) Total Return [ 204.1% ] Prior price dividend adjustment factor is 1.00.
Prediction: Warren Buffett's Berkshire Hathaway Stock Will Outperform the S&P 500 in 2025. The S&P 500 and Berkshire Hathaway stock both performed well in 2024. Many market strategists predict that the market will move higher in 2025.
Stock Market Average Yearly Return for the Last 20 Years
The historical average yearly return of the S&P 500 is 10.475% over the last 20 years, as of the end of December 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.719%.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns -- perhaps even negative returns. Other years will generate significantly higher returns.
Top Warren Buffett Stocks
Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million. Apple (AAPL), 300 million. Occidental Petroleum (OXY), 264.3 million.
Class A shares offer a long-term investment but little chance of a stock split down the line. Investors looking for flexibility might prefer to invest in Berkshire's Class B shares. They can add to their stake or trim it from time to time without dealing in the six-figure numbers that a single Class A share represents.
Even Warren Buffett, who has beaten the market by huge margins over decades, hasn't managed to do so every year. That said, he has a stellar long-term track record. Consider this: From the year when Buffett took over Berkshire Hathaway through the end of 2023, the S&P 500 gained 31,223%.
Berkshire Hathaway (BRK. A -2.20%) (BRK. B -2.03%) is often considered a reliable stock for conservative long-term investors. The conglomerate is led by Warren Buffett, who famously said his favorite holding period for a stock is "forever."
A: Five rules drawn from Warren Buffett's wisdom for potentially building wealth include investing for the long term, staying informed, maintaining a competitive advantage, focusing on quality, and managing risk.
Why Warren Buffett only gets paid $100,000 a year — a fraction of his deputy's $20 million salary. Warren Buffett's salary was $100,000 last year, while his deputy made $20 million. Buffett wants it that way to signal his prudence, frugality, and devotion to Berkshire shareholders.
In the second quarter of 2024, Buffett again bought more shares of Chubb, Occidental, the two Liberty Media Sirius XM tracking stocks, and Sirius XM. He also initiated new positions in aerospace and electronics company Heico and cosmetics retailer Ulta Beauty.
Warren Buffett says he'd give up an extra year of his life to be able to eat anything he wants. Famously a fan of junk food, the 92-year-old has said he drinks 5 cans of Coke a day and eats McDonald's daily. "I always tell people: I found everything I like to eat by the time I was six," he told CNBC.
Invest in Dividend Stocks
Last but certainly not least, a stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income. However, at an example 4% dividend yield, you would need a portfolio worth $300,000, which is a substantial upfront investment.
Many retirement planners suggest the typical 401(k) portfolio generates an average annual return of 5% to 8% based on market conditions. But your 401(k) return depends on different factors like your contributions, investment selection and fees.