BRK.A has compounded at a healthy 12.5% return since the beginning of 1990. Given that Buffet will spend down his cash hoard of $50 billion down to a level of $20 billion to buy back his stock, I felt compelled to compare his returns to other companies considered leaders in their field from 20+ years ago. Other charts will follow: ABT, KO, MCD, MSFT, JNJ and others. As far as the RISK: BRK.A had two 50% declines in price since 1990, so earning 12.5% on your money involves risking 4 times that return in potential losses. MKC did better in terms of total return (capital appreciation + dividends) for the past two decades. I'll examine a few others next. Looking forward two decades, what would you like to own?
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