Thanks to yesterday’s annual meeting for Berkshire Hathaway, it’s the high season once again for admiring Warren Buffett’s stellar investing record. The praise is certainly justified. The company’s stock has risen by roughly 20% a year over nearly five decades, convincingly outperforming the US stock market by a wide margin. As The Economist notes, “someone who invested $1000 at the outset would now have more than $10m, compared to around $100,000 if they had invested the same amount of money in the S&P 500.”
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