Buffett's Curtain Call in 2025: Berkshire's Market Cap Leads for the Long Term, Over 60 Years of Cumulative Growth Exceeds 60,000 Times

In 2025, global investment attention once again focused on Berkshire Hathaway. According to its latest earnings report released on Saturday evening, this investment giant, led by Warren Buffett for decades, slightly underperformed the overall market in its annual stock price performance, but its long-term returns remain among the industry’s best. Data shows that Berkshire’s stock price increased by 10.9% over the year, while the S&P 500 index rose by 17.9% during the same period. However, when extending the timeline to 1965–2025, Berkshire’s compound annual growth rate (CAGR) per share reached 19.7%, far surpassing the S&P 500’s 10.5%, highlighting its resilient investment ability across cycles.

What’s even more remarkable is Berkshire’s long-term cumulative returns. From 1964 to 2025, the company’s market value skyrocketed from a negligible starting point to an astonishing 6,099,294%, equivalent to a 60,992-fold increase. In comparison, the S&P 500’s growth over the same period was 46,061%, or 460 times. This data confirms Buffett’s investment philosophy of “using time to create space”—by holding high-quality assets long-term, the power of compounding ultimately creates miracles. Although Berkshire’s short-term performance in 2025 was somewhat flat, its long-term achievements continue to set a benchmark for global investors.

On December 31, 2025, Berkshire Hathaway reached a historic milestone: Warren Buffett officially stepped down as CEO, ending his decades-long leadership. He had announced this decision in advance in November and stated he would remain Chairman of the Board while retaining a “significant amount” of company shares. The 95-year-old investment master may have stepped back from the spotlight, but his investment philosophy and corporate culture still profoundly influence this trillion-dollar enterprise. The market generally views Buffett’s retirement as a new phase for Berkshire, but its core investment strategy is expected to remain fundamentally unchanged.

Analysts note that Berkshire’s performance in 2025 reflects the complexity of the market environment. Although it underperformed the S&P 500 for the year, considering its portfolio is mainly composed of traditional industries, performing steadily in a tech-driven bull market is no small feat. The company’s large cash reserves (reaching $120 billion by year-end) also provide ample buffer to respond to market volatility. As Buffett gradually steps back from daily management, investors will closely watch whether the new CEO can continue Berkshire’s brilliance and whether the company will adjust its investment strategy to adapt to the new era.