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Rekenthaler Report

Would You Have Found Berkshire Hathaway in 1975?

Probably not, from the performance charts.


Back in Time
Tuesday’s column suggested that time travelers purchase $1000 worth of  Berkshire Hathaway (BRK.A) stock in 1975. That position would be worth $7.5 million today. Which got me thinking: How did BRK’s equity appear at that time?

Warren Buffett gained control of BRK in May 1965. The chart below depicts the value of a $10,000 investment in BRK over the next five calendar years, from 1966 through 1970. For comparison’s sake I included the S&P 500 and the price change of a barrel of crude oil. (The latter two investments are theoretical: There were no index funds and oil barrels came with storage costs.) All figures are adjusted for inflation.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.