Berkshire Hathaway is widely regarded as one of the most powerful long-term wealth-building companies in the world. Investors in Philadelphia closely follow Berkshire Hathaway because of its disciplined value investing approach, diversified business ownership, and the legendary leadership of Warren Buffett.
Unlike short-term speculative stocks, Berkshire Hathaway focuses on sustainable compounding. This philosophy resonates strongly with investors from Philadelphia who prioritize capital protection, inflation hedging, and steady portfolio growth.
Founded in 1839 and transformed into an investment powerhouse in 1965, Berkshire Hathaway owns over 60 operating businesses including GEICO, BNSF Railway, Dairy Queen, and Duracell. Additionally, it holds major equity stakes in Apple, Coca-Cola, American Express, and Chevron.
| Period | Berkshire CAGR | S&P 500 CAGR |
|---|---|---|
| 1965–2024 | ~19.8% | ~10.2% |
| Last 10 Years | ~12.5% | ~11.9% |
| Last 5 Years | ~14.3% | ~12.1% |
| Year | BRK.A Estimate | BRK.B Estimate |
|---|---|---|
| 2025 | $680,000+ | $520+ |
| 2030 | $900,000+ | $700+ |
| 2035 | $1.3 Million+ | $1,040+ |
While Berkshire Hathaway is considered extremely stable, investors in Philadelphia should be aware of risks such as succession planning, macroeconomic slowdowns, and concentration in major holdings like Apple. However, its diversified structure helps mitigate most long-term risks.
Is Berkshire Hathaway safe for beginners?
Yes. BRK.B shares are affordable and ideal for beginners seeking long-term growth.
Does Berkshire Hathaway pay dividends?
No. Profits are reinvested to maximize long-term compounding.
Is Berkshire suitable during inflation?
Yes. Its businesses and pricing power help preserve value during inflationary periods.
For investors in Philadelphia, Berkshire Hathaway remains one of the strongest foundations for long-term wealth creation. Its consistent performance, conservative management, and global diversification make it a preferred choice even in competitive markets.