There is no debate about the long-term investment success delivered by Berkshire Hathaway. Since 1965, compound growth in per-share book value of Berkshire has far outstripped growth delivered by an investment in the S&P500 Index, resulting in an exceptional long term investment experience for Berkshire’s owners. However, while the long-term results are exceptional, the more recent results have been less so. The chart below shows the annual gap between growth in per-share book value and the return received on an investment in the S&P500 Index (in blue), and the rolling ten-year average gap (in orange). What the chart shows is that for recent ten year periods, the gap has been running at ever declining levels (albeit still in positive territory).