For my money, I have to wonder whether Warren Buffett is as good as he is made out to be. If his management really “adds value” to value investing, why don’t his results at least equal the performance of passive value index funds?
Fifteen years ago, investors knew the stock had compounded at more than 34% since 1978. A $100 investment had grown to $36,200. I’m sure that many investors thought: “If I can earn half of that, I’ll be happy.”
Those who confidently bought the stock may be excused if they feel chagrined at having made a compound return of only 5.3% a year since then, according to Morningstar.