Berkshire Hathaway's Stock Price Returns Hurt by Loose Money Policies

Easy Money Policies appear to have harmed Berkshire Hathaways stock price returns over.

Easy money appears to have harmed Berkshire Hathaways stock price returns over.

Berkshire Hathaway stock has historically outperformed the S&P 500 index, but its returns have been more modest in recent years. Some analysts believe that this is due to the Federal Reserve's easy money policies, which have inflated asset prices and made it more difficult for value investors like Berkshire Hathaway to find attractive investment opportunities.

From 1965 to 2021, Berkshire Hathaway stock generated a compound annual return of just over 20 percent. This compares to an annualized return of 9.9% for the S&P 500 index over the same period.

However, since 2009, Berkshire Hathaway's stock price has lagged the S&P 500. The S&P 500 index has returned an annualized 13.6% since 2009, while Berkshire Hathaway stock has returned an annualized 10.2%.

Some analysts believe that this underperformance is due to the Federal Reserve's easy money policies. These policies have inflated asset prices, making it more difficult for value investors like Berkshire Hathaway to find attractive investment opportunities.