Selena Maranjian, The Motley Fool
4 min read
Let’s play a what-if game. Imagine that you plunk, say, $500 in Warren Buffett’s company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). (Note that Buffett recently retired, and the new CEO is a longtime lieutenant, Greg Abel, in whom Buffett has expressed great confidence.) What would your stake be worth in a decade?
Here’s a look at that question.
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With a recent market value of about $1 trillion, Berkshire Hathaway is a classic blue chip stock. It’s not currently a dividend-paying stock, which is a bit unusual for a well-run company of its size, but some speculate that Abel may well institute a dividend. (The company’s third-quarter report revealed a cash hoard that has reached $382 billion, after all.)
If you invest in Berkshire Hathaway, you’ll be a part owner of many businesses entirely owned by Berkshire, such as GEICO, Benjamin Moore, See’s Candies, and the entire BNSF railroad — and you’ll have a stake in Berkshire’s stock portfolio, too, which features major positions in companies such as Apple, American Express, Coca-Cola, and Bank of America. (Berkshire recently owned 9% of Coca-Cola, for example, and 2% of Apple.)
So what kind of return can you expect from Berkshire over the next 10 years? Here’s how it’s done in the past:
|
Time Period |
Average Annual Return |
|---|---|
|
Past 1 year |
1.60% |
|
Past 3 years |
15.53% |
|
Past 5 years |
15.91% |
|
Past 10 years |
13.90% |
|
Past 15 years |
12.49% |
Source: Data from Morningstar.com as of Jan. 29, 2026.
We shouldn’t expect such fat returns every year, though. Remember that the stock market has averaged annual returns of close to 10% over many decades — and Berkshire is no longer a modest-sized and nimble fast-grower.
Still, let’s be a bit conservative and assume that the stock will average a total annual return of, say, 11% over the coming decade — with or without a dividend. If it does, that will boost your stake’s value to $1,420.
Here’s what it will be worth at different growth levels (since we can’t know exactly how the stock — or the market — will do):
|
Growing at This Rate |
$500 Becomes This After 10 Years |
|---|---|
|
7% |
$984 |
|
8% |
$1,079 |
|
9% |
$1,184 |
|
10% |
$1,297 |
|
11% |
$1,420 |
|
12% |
$1,553 |
|
13% |
$1,697 |
|
14% |
$1,854 |
|
15% |
$2,023 |
Calculations by author.