Warren Buffett has a long history of teasing investment bankers and their institutions – saying that they encourage mergers and spinoffs to reap fees, rather than improve companies.
Today, he noted that Berkshire Hathaway would always be cash-rich, and in times of need, would be “better than the banks” at extending credit lines to companies in need.
Warren Buffett’s career has been a testament to that the fact that, over the long-term, value investing can produce major gains.
From the start of 1965 through the end of 2021, the per-share market value of Berkshire Hathaway had an average compound annual gain of 20.1%, according to the firm’s annual letter. That is nearly double the S&P 500′s 10.5%, including dividends.
While Buffett has built a big lead over many decades, he has had continued success in recent years. Since 2010, Berkshire has outpaced the S&P 500 in eight calendar years. That is on track to happen again in 2022.
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