Berkshire Hathaway Outpaces the Market as Warren Buffett Celebrates 60 Years at the Helm
Berkshire Hathaway has weathered a turbulent period for the stock market, and as shareholders gather this weekend, they’ll be looking to Warren Buffett for continued confidence amid the economic uncertainty caused by tariff disruptions across corporate America.
On Saturday, the iconic annual shareholders’ meeting will take place in Omaha, Nebraska, where 94-year-old Buffett will mark six decades of leading the company, now valued at over $1.15 trillion.
Buffett is expected to spend approximately four and a half hours answering questions from investors. Topics often range from Berkshire’s diverse business portfolio and economic outlook to personal insights and succession planning for the so-called “Oracle of Omaha.”
Berkshire’s holdings span a wide spectrum of industries, including Geico insurance, BNSF Railway, Berkshire Hathaway Energy, Dairy Queen, Fruit of the Loom, and even nostalgic brands like Ginsu knives and the World Book Encyclopedia. For many, the company mirrors the health of the broader American economy.
Despite widespread volatility, Berkshire’s shares have surged 18% through 30 April, far outperforming the S&P 500 index, which has dropped by 5% over the same period. Analysts suggest this divergence is less about a renewed outlook on Berkshire and more a reflection of shifting investor sentiment driven by President Trump’s trade policies.
The conglomerate ended last year with a cash reserve of $334.2 billion—a sum capable of generating over $14 billion in income at current yields. This substantial cash pile is seen by many as a strategic advantage, offering both flexibility and downside protection.
“Investors have immense faith in Buffett’s knack for allocating capital during turbulent markets,” said Brett Gardner, author of Buffett’s Early Investments. “Plus, Berkshire benefits from reliable cash-generating businesses that are less sensitive to market swings.”
Buffett’s legendary early investment successes helped fuel a stock price increase of over 6,400,000% since 1965. While in recent years Berkshire’s returns have more closely tracked the S&P 500, the company has consistently demonstrated greater resilience during downturns.
The Impact of Tariffs
Buffett himself has long warned that past levels of outperformance are unlikely to continue indefinitely.
“We can't replicate past results,” he noted during the 2013 shareholder meeting. “It gets harder as we grow.” More recently, at the 2021 meeting, he advised investors with limited market knowledge to consider index funds rather than betting solely on Berkshire shares.
In his February 2024 shareholder letter, Buffett reiterated that while Berkshire may slightly outperform average American companies, it should do so with far less risk to invested capital—though expecting anything beyond modest outperformance would be “wishful thinking.”
Insurance remains a cornerstone of Berkshire’s success, contributing 48% of its $47.4 billion in operating profit last year. However, earnings declined in over half of its 189 subsidiaries, and ongoing trade tensions could place further pressure on parts of its portfolio.
BNSF Railway, for instance, could face lower shipping volumes if tariffs reduce import activity. Even the housing sector isn’t immune. “Tariffs can destabilise markets, which impacts the 10-year Treasury note and, by extension, mortgage rates,” said Chris Kelly, CEO of HomeServices of America, the largest residential real estate firm in the US.
(Sources: reuters.com)
