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Can Berkshire Hathaway Still Make You a Millionaire?
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Published in Stocks and Investing on Tuesday, December 30th 2025 at 4:14 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
The Long Game: Can Berkshire Hathaway Still Make You a Millionaire?
Berkshire Hathaway, Warren Buffett's investment conglomerate, has long been synonymous with wealth creation. For decades, its stock (BRK.A and BRK.B) has delivered exceptional returns, turning many investors into millionaires. But in an era of shifting market dynamics, rising share prices, and a changing leadership landscape, the question arises: can Berkshire Hathaway still be a "millionaire maker" for new investors? The answer, according to recent analysis, is complex but leans towards “yes,” albeit with significant caveats and a long-term perspective.
The MSN article explores this very question, delving into Berkshire's historical performance, current valuation, and the potential impact of Buffett’s eventual succession. It highlights that while the path to millionaire status via BRK.A (the Class A shares) is increasingly difficult due to their high price tag, BRK.B shares offer a more accessible entry point for smaller investors.
A History of Outperformance:
The article emphasizes Berkshire's remarkable track record. Over the past 50 years, Berkshire Hathaway has significantly outperformed the S&P 500 index. While specific numbers fluctuate depending on the timeframe analyzed, the general consensus is that Berkshire’s returns have been consistently higher than the broader market average. This outperformance isn't just a matter of luck; it's attributed to Buffett's disciplined investment strategy – focusing on fundamentally sound companies with strong management teams and durable competitive advantages (often referred to as "moats"). The article references how Buffett’s approach, rooted in value investing principles, has allowed Berkshire to weather economic downturns and capitalize on long-term growth opportunities.
The BRK.A vs. BRK.B Dilemma:
One of the immediate hurdles for potential investors is the price disparity between BRK.A and BRK.B shares. BRK.A currently trades at over $540,000 per share – a figure that effectively excludes most individual investors. This high price reflects the voting power associated with Class A shares (each share carries 10 votes). The article points out that while BRK.B shares are significantly cheaper (around $320 as of late October), they carry fewer voting rights. This difference in voting power is a key consideration for investors who want to have a say in the company's direction, but for most retail investors seeking long-term growth, the lower price and comparable performance of BRK.B make it the more practical choice.
The Millionaire Math – And It’s Getting Tougher:
The article then tackles the "millionaire maker" claim directly. Using historical average annual returns (around 10% - a figure that is not guaranteed to continue), it demonstrates how much capital would be needed today to reach $1 million in 20 years. The calculation reveals that, even with a seemingly modest 10% annual return, an investor would need to invest roughly $35,000 today to accumulate $1 million in two decades. This highlights the challenge: while Berkshire has historically delivered strong returns, the sheer size of the stock’s current price means larger initial investments are required to reach millionaire status.
Succession and Future Prospects:
A significant portion of the article focuses on the looming succession plan at Berkshire Hathaway. Warren Buffett is 93 years old, and while he's demonstrated remarkable longevity in his role, the question of who will lead the company after him remains a key factor for investors. Greg Abel has been designated as the successor CEO, and Ajit Jain will take over as head of insurance operations. The article acknowledges investor concerns about whether these successors can replicate Buffett’s legendary investment acumen. While Abel's performance as head of Berkshire's operating businesses has generally been positive, his track record in capital allocation (a crucial aspect of Buffett's success) is still being assessed. The linked article from Bloomberg highlights the complexities of succession planning at a company as vast and diverse as Berkshire Hathaway.
Beyond Stock Price: The Underlying Value:
Despite the challenges posed by high stock prices and succession uncertainties, the article argues that Berkshire Hathaway’s underlying value remains compelling. The company's diversified portfolio of businesses – spanning insurance, railroads, energy, manufacturing, and more – provides a degree of resilience against economic volatility. Furthermore, Berkshire’s substantial cash reserves provide flexibility to capitalize on future investment opportunities. The "moats" surrounding its subsidiaries—the competitive advantages that protect their profitability—are still considered strong.
Conclusion: A Long-Term Commitment:
Ultimately, the MSN article concludes that while becoming a millionaire through Berkshire Hathaway stock might require a larger initial investment than it did in previous decades, it’s not entirely out of reach. However, it emphasizes that achieving this goal requires patience, discipline, and a long-term perspective. Berkshire Hathaway isn't a get-rich-quick scheme; it's an investment for those who believe in the power of compounding returns over time and are willing to entrust their capital to the principles of value investing championed by Warren Buffett – even as that leadership transitions. The article serves as a reminder that while past performance is no guarantee of future results, Berkshire Hathaway’s enduring business model and disciplined approach continue to make it an attractive option for long-term investors seeking wealth creation.
Note: I've tried to accurately reflect the content and tone of the original MSN article. The specific numbers (stock prices, return rates) are as accurate as possible based on information available at the time of writing this summary but may have changed since then. Always consult current financial data before making investment decisions.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/topstocks/is-berkshire-hathaway-stock-a-millionaire-maker/ar-AA1TfoXY ]
