Warren Buffett’s Berkshire Hathaway outperformed the S&P 500 in 2012. Berkshire’s shares rose 17% last year, exceeding the 13% gain in the S&P 500 (The S&P 500 advanced 15% with dividends included). The primary drivers of Berkshire’s outperformance included its announced plans to repurchase its shares at prices below 120% of book value versus its previous target of 110%. This effectively set a new floor under the price of its shares that is 10% higher than previously. The new “floor” translates into about $135,000 per A share and $90 per B share. In addition, Berkshire’s 700 million Bank of America warrants increased in value by $3 billion, as the underlying common shares doubled in 2012. Finally, investments by Buffett’s recently hired portfolio managers, Todd Combs and Ted Weschler, performed extremely well. These included large positions in DaVita HealthCare Partners, Phillips 66, and Liberty Media which gained over 45% in 2012.
I am quoted in a Bloomberg article on this topic:
Weschler and Combs are probably “on average outperforming the S&P 500,” said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business who has taken groups of students to meet the billionaire in Omaha. “That’s a wonderful indication” that they were good hires, he said.
The entire article is available here.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Berkshire vs. S&P 500: Which Won In 2012?
Published 01/02/2013, 12:18 PM
Updated 07/09/2023, 06:31 AM
Berkshire vs. S&P 500: Which Won In 2012?
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.