Shares of Berkshire Hathaway have delivered strong long-term gains, but the last decade’s performance has been more about business growth than investor repricing. Over the 10-year span from Aug. 25, 2016 to Aug. 25, 2026, Berkshire’s Class B shares closed at $148.64 and later at $504.32, a move driven by rising operating earnings and an expanding insurance “float,” rather than dividends.
Still, an index comparison shows that the stock did not outperform the market over the same period. According to the article’s data, a $10,000 investment in Berkshire grew to about $33,900, while the same $10,000 placed in an S&P 500 index fund with dividends reinvested grew to about $41,300.
Key takeaways
- Price move: Berkshire Class B shares rose from $148.64 on Aug. 25, 2016 to $504.32 on Aug. 25, 2026.
- Catalyst: Operating earnings growth and expanding insurance float supported the stock’s compounding.
- Index implication: A $10,000 S&P 500 investment with dividends reinvested finished about $7,400 ahead versus Berkshire over the same window.
- Valuation implication: The stock’s multiple based on operating earnings is described as around 21 times on a recent annualized basis.
What drove Berkshire’s decade-long return
Berkshire does not pay dividends, so the return from holding the shares comes primarily through price appreciation. The article notes that a $10,000 investment in Berkshire would have grown to about $33,900, with the stock “roughly tripling” across the period.
At the operating level, Berkshire’s earnings trend closely matched the stock’s climb. The company reported full-year operating earnings of $17.6 billion in 2016, rising to $44.5 billion in 2025, according to the article. It also highlights that Berkshire has been reducing its share count through buybacks—shrinking from about 1.64 million Class A-equivalent shares in 2016 to about 1.43 million by midyear. Spreading higher operating earnings over fewer shares, the article says, helped lift per-share operating earnings to nearly triple.
The growth rate was not portrayed as linear. Operating earnings slipped in 2025 from $47.4 billion in 2024, but the article cites a stronger first half of the following year, with operating earnings running 17% ahead of the prior-year pace. It also points to contributions from major segments, including the BNSF railroad (reported as up about 10% year over year) and energy (up about 11%), alongside a manufacturing, service and retailing group rising about 15%.
Float expansion and the business engine behind compounding
Beyond earnings, the article underscores the role of Berkshire’s insurance operations. It states that insurance float increased from about $91.6 billion at the end of 2016 to about $177.5 billion by midyear. Float represents the premiums Berkshire receives and invests before paying claims, and the article describes it as a key driver of long-term compounding.
The article also cautions that the stock’s total results include the investment portfolio’s gains and losses, but those can be volatile. Berkshire’s stock price can therefore reflect both operating performance and market moves within its equity holdings. However, the article argues that much of the “tripling” over the decade appears linked to business scale and operational growth rather than a major shift in how the market valued each earnings dollar.
Market reaction: Berkshire vs. the S&P 500
While Berkshire’s share price increased substantially, the article states that Berkshire did not beat the broader market over this decade-long stretch. Using an SPDR S&P 500 ETF Trust reference and assuming dividends were reinvested, it reports that a $10,000 stake would have grown to about $41,300—about 15% per year on a dividend-adjusted basis in the article’s framework.
On that same comparison, the article says the index finished roughly $7,400 ahead of the Berkshire investment. It attributes part of the index’s edge to a period in which technology companies came to dominate the market, along with more recent strength associated with an artificial intelligence spending boom.
The implication from this comparison is that Berkshire’s underperformance relative to the index was not necessarily due to weaker business momentum. Instead, the article suggests the mismatch reflects where market leadership occurred during the decade—areas where Berkshire’s insurance, freight, and power-focused operations have less direct exposure.
Is the stock still attractive on earnings terms?
The article points to continuing operating momentum. It cites second-quarter operating earnings rising 16% year over year and states that Berkshire repurchased about $4.5 billion of its own stock during the quarter after $235 million in the first quarter.
Despite that support, the article frames valuation as less favorable than earlier in the decade. It notes that Berkshire shares were about 6% below their 52-week high, citing levels around $504 and a 52-week high near $537.74. Using second-quarter operating earnings annualized, the article estimates an operating-earnings multiple of about 21 times. It contrasts that with a much lower price-to-earnings figure that investors might see from screens, but the article says reported net income can be distorted by investment gains and losses that Berkshire itself warns are often not meaningful over short stretches.
On that basis, the article argues that investors today are paying for continued growth in the underlying business rather than a discount embedded in an operating earnings valuation.
What to watch next
Investors will likely focus on whether operating earnings continue to rise at a pace sufficient to justify a high multiple tied to Berkshire’s earnings power, as well as ongoing buyback activity. The next signals to watch include quarterly operating results across the insurance, rail, energy and other operating segments, along with updated information on float growth. Market-wide catalysts that can influence the investment portfolio—such as changes in interest rates, equity market volatility, and broader macro conditions—may also affect Berkshire’s reported results even if operating performance remains the central driver.
