With the release of Berkshire Hathaway’s Annual Report, Mr. Buffett and his amazing investment record are at the forefront of investing news. This annual report contains a wealth of knowledge and experience that every single investor should take the time to read and understand.

Being an avid indexer, I decided to compare BRK-A with the DJIA and the S&P500. Of course, I was just doing this for fun. After all, how can such a simple strategy as indexing even compare with the Oracle of Omaha!

Check this out. Here is how BRK-A has performed over the last 2 years against the DJIA and the S&P 500.

Pretty interesting. Both the DJIA and the S&P 500 handily beat Mr. Buffett. Can it be? Indexing beat the super investor?

Ok. Enough fun. Let us give credit where credit is due. Mr. Buffett is THE super investor. Here is the chart showing BRK-A over the long run against the indices.

No comparison. Mr. Buffett has dominated both indices with ease. In fact, Mr. Buffett shows exactly how he has done compared to the S&P 500 right on page 3 of his Annual Report.

The bigger question is: Are the last 2 years of BRK-A performance the new trend? Or is it just a blip in the long, legendary history of Mr. Buffett? And even if this is just a blip, how will Mr. Buffett’s successor fair? After all, Mr. Buffett is 75 years old.

Since I will never be a mini Warren Buffett, I’ll stick with the indexing. Now, I will sit back and read his annual report and try and learn as much from the master as I can.