Warren Buffett has an incredible track record of outperforming the S&P 500.
At the start of every Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) annual report, he shares the annual returns of Berkshire Hathaway compared to the S&P 500 (with dividends included) for every year dating back to 1965, the year he took control of the business. The results are nothing short of remarkable. Berkshire Hathaway’s compound annual return since Buffett took over is 19.8% compared to 10.2% for the S&P 500.
Buffett managed to achieve those results through all sorts of markets and economic conditions. His sole focus on finding great companies trading at a fair price has served him and his investors well. These stocks generally have greater downside protection along with the potential to outperform the overall market.
So, when Buffett identifies a company he thinks should outperform the market averages…
