Here’s When Buffett Will Start Winning Again: Berkshire Hathaway Inc. (BRK.B)

Now, however, let’s see what happens when we look at the nine years during which Berkshire outperformed the S&P the most:

Source for data: Berkshire Hathaway 2012 shareholder letter

Now, with the tables turned, here’s where the S&P’s true colors finally start to show.

First, notice that the S&P actually lost value during seven of the nine years during which Berkshire outperformed the most. What’s more, during six of those seven years, Berkshire Hathaway Inc. (NYSE:BRK.B) managed to increase its own book value with — you guessed it — the wind in its face. As it so happens, of these nine years, the sole period during which Berkshire lost ground was 2008, when its per-share book value fell 9.6%. Even so, Buffett’s baby outpaced the S&P that year by a whopping 27.4% as the index incurred a massive 37% loss.

In short, while Berkshire’s not afraid to put up a long jumper every now and again, it takes the most pride in its unrivaled ability to play world-class defense. Of course, this shouldn’t come as a surprise, since we’re talking about a man whose self-described first rule of investing is “never lose money.” His second rule? “Never forget rule No. 1.”

This, my fellow Fools, is when Berkshire will start winning again. When (not if) the market finally decides to revert to the mean, patient long-term investors can rest assured Berkshire will be there to soften their landing.

The article Here’s When Buffett Will Start Winning Again originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Berkshire Hathaway.

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