Berkshire Hathaway founder and CEO Warren Buffett is generally regarded as the greatest investor of all time. Buffett took over Berkshire, which was then a textile mill, in 1965, and through a series of savvy acquisitions and investments, he turned it into a conglomerate that’s become one of the biggest companies in the world. Buffett made thousands of early investors rich along with him as Berkshire stock has compounded at a 20% annual growth rate over its history, essentially doubling the market average.
Lately, however, Berkshire’s returns have been less than spectacular. Over the past decade, the stock has underperformed the S&P 500, and with Buffett now in his 90s, Berkshire’s future is more uncertain than ever before.
While investors still love Buffett’s homespun wisdom and track Berkshire’s major stock purchases and sales, the Oracle of Omaha isn’t the beacon he once was. The market has undergone extraordinary changes since Buffett began his career, and a number of his rules, like avoiding tech stocks, don’t fly in a market where tech dominates. Instead, investors may want to pay attention to a fund manager who’s emerged as a mastermind of the current era.