1) Berkshire Hathaway

Last weekend Warren Buffett published his annual shareholder letter describing the performance of his company, Berkshire Hathaway (BRK) over the past year. He also has a table that compiles his returns over the 55 years he has run the company.

1. If at the start of those 55 years you had put $1,000 in ultra-safe 3-month US Treasury Bills, and rolled them over every three months as they matured, you would now have $11,766. What Compound Annual Growth Rate (CAGR) would you have received?
2. If at the start of those 55 years you had put $1,000 into the S&P 500 you would now have $209,000.00. What Compound Annual Growth Rate (CAGR) would you have received?
3. The Compound Annual Growth Rate (CAGR) on BRK over that time has been 20.0%. If you invested $1,000 in Berkshire 55 years ago, how much money would you have now?