Historical Performance
The extraordinary investment performance of Warren Buffett is impressive. Anyone who entrusted him with just $100 in 1957 could have achieved a total performance of around 27,671,389 percent by the end of 2024. This means:
- $100 turned into about $27,671,489
- $1,000 became approximately $276.7 million
- $10,000 turned into a fortune of about $2.77 billion
These figures are based on investments in Buffett’s early investment partnerships and later in Berkshire Hathaway.
Comparison to Market Development
An investment of $100 in the S&P 500 in 1957 would have grown to about $82,000 by May 2025, adjusted for inflation to about $7,100. The difference to Buffett’s performance is therefore enormous.
Buffett’s Investment Strategy
Warren Buffett built his wealth based on the following principles:
- Long-term Perspective: Investing over decades.
- Focus on Quality: Seeking companies with strong competitive advantages.
- Discipline: Freedom in capital allocation without external influences.
- Understanding: Relying on sound knowledge before investing.
Berkshire Hathaway serves as an investment vehicle – transformed from a textile ruin into one of the most successful corporate structures.
Special Features of His Method
Buffett distinguished himself through the following approaches:
- No procyclical fund structures: Independent of short-term market fluctuations.
- Strong cash positions: Utilizing crisis times for favorable investments.
- Transparency and Predictability: Clear, long-term oriented strategy.
Conclusion for Private Investors
Important lessons for private savers are:
- Long-term thinking pays off.
- Quality over quantity.
- Disciplinary execution is essential.
- Understanding investments is crucial – diversification alone is not enough.
Although no one can expect Buffett’s exact returns, his method remains a model for sustainable investing.