Berkshire Lags the Market

April 25, 2011

Today’s special report focuses on Warren Buffett.

Buffett is well known for wanting to beat the market, and doing so pretty much every year. But you had a hard time outdoing the S&P 500 lately if you just stuck your money in shares of his conglomerate Berkshire Hathaway.

Since the depths of the financial crisis in the fall of 2008 Berkshire has slightly lagged the broad-based S&P index. $100 put in Berkshire’s actively traded Class B shares on Sept. 2, 2008 was worth $102.60 at midday on April 21, 2011. If you put your money in the S&P 500 instead you’d have $104.56.

Buffett has been clear with investors that returns would slow, and his recently stated urge for acquisitions is designed in part to bolster Berkshire’s growth. But shareholders are still asking questions about why returns are so anemic and what the “Oracle of Omaha” will do to improve them.

To read the special report in multimedia PDF format, click here.

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