Beating the S&P 500 is so difficult that the index outperforms most active money managers but Warren Buffett has consistently done so. Over the last 30 years BRK.A has had an average annualized total return of 14.9%, while the S&P 500 has returned 9.4%.
…The following chart compares the total return of BRK.A against the total return of the S&P 500 over the past 30 years:
…The chart below shows that Buffett bested the S&P 500 in every bear-bull market cycle during that period but the margin between the two has narrowed as the years have passed to the point where, from 2007 to the present, Buffett’s investing prowess has been consistent with the S&P 500’s return…
Given the above, it’s no wonder then why the aging billionaire is leaving instructions for his estate to invest in the S&P 500 for the benefit of his survivors after he passes away.