Last updated: January 29, 2026

Berkshire Hathaway vs S&P 500: Is Buffett Still Worth It in 2025?

Berkshire Hathaway has long been a market-beating investment. But with Warren Buffett aging and market dynamics shifting, does it still make sense to buy BRK over a simple index fund?

TL;DR

• Berkshire trades at roughly 1.4x book value; historically 1.5–2x
• S&P 500 offers diversification, lower fees, immediate liquidity
• Our view: S&P 500 for most investors; Berkshire for those who trust Buffett’s judgment

Key Takeaways

• Performance: Berkshire has beaten S&P 500 over most multi-decade periods, but gap is narrowing
• Size problem: Berkshire’s massive size makes outperformance harder
• Succession: Buffett won’t live forever; unknown future leadership
• Fees: S&P 500 ETFs have near-zero fees; Berkshire has no management fee but hidden costs

Quick Compare

Berkshire Hathaway Overview

What it is: Conglomerate holding company with insurance, railroad, energy, and significant stock holdings.

Strengths: Permanent capital, excellent capital allocation, insurance float.

Risks: Succession uncertainty, size constraints, book value reliance.

S&P 500 Overview

What it is: Index of 500 largest US companies, representing roughly 80% of US market cap.

Strengths: Instant diversification, low fees, automatic rebalancing.

Risks: Includes overvalued companies, no active management.

Head-to-Head Analysis

Historical Performance: Berkshire has won over decades, but advantage has shrunk.

Future Prospects: S&P 500 may outperform as Berkshire’s size limits agility.

Convenience: S&P 500 wins—buy and hold in any brokerage.

Emotional Value: Berkshire offers owning a piece of investing legend.

Bottom Line

For most investors, a simple S&P 500 index fund is the right choice. Berkshire Hathaway makes sense for those who specifically want Buffett’s capital allocation.