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The Oracle's Outperformance

The Oracle of Omaha shared his latest thoughts this morning on Squawk Box. Looking at Berskshire Hathaway's performance for over 40 years demonstrates why Warren Buffett is the most storied investor of our time.

Above is a chart of the stock performance of Berkshire vs the S&P 500 since 1984. Through Friday's close, BRK has returned a whopping 10,750% or 22% per year. This compares to the S&P 500 which has delivered an impressive 700% or 9% per year in the same period.

In his letter to shareholders, Berkshire tracks performance of per-share changes in book value over 40 years. Again the results are astronomical. The overall gain from 1964 through 2007 is 400,863% or 21.1% per year while the S&P delivered 6,840% in the same time frame.