Berkshire’s 6,000,000% Return Driven by US$25M See’s and US$5B Bank Deal
Since 1965, Berkshire Hathaway shares have returned over 6,000,000%, vastly outpacing the S&P 500’s 46,061% gain. Acquisitions like See’s Candies (US$25 million for US$2 billion pretax income) and a US$5 billion Bank of America preferred deal (6% coupons plus US$12 billion warrant profit) drove decades of compounding growth.
1. Record-Breaking Cumulative Return
Since taking control in 1965, Berkshire Hathaway shares have delivered a cumulative return exceeding 6,000,000%, compared with a 46,061% gain for the S&P 500 over the same period. This extraordinary outperformance represents a 130-fold advantage versus the benchmark.
2. See’s Candies Investment
In 1972, Berkshire invested US$25 million in See’s Candies, a price Buffett initially hesitated over but Charlie Munger championed. That stake has generated over US$2 billion in pretax income, illustrating the power of a beloved brand with pricing power and consistent cash flow.
3. Bank of America Preferred Deal
During the 2011 financial crisis, Berkshire structured a US$5 billion preferred share investment in Bank of America paying 6% annually (US$300 million) plus warrants for 700 million common shares at US$7.14. Exercising those warrants yielded roughly US$12 billion in instant paper profit and a peak value above US$36 billion.
4. Coca-Cola Long-Term Stake
Berkshire’s US$1.3 billion investment in Coca-Cola in 1988 has grown to about US$31 billion, a gain of roughly 2,300% before dividends. Buffett’s decades-long hold underscores his strategy of buying great businesses at fair prices and compounding value over generations.