Warren Buffett's Performance plummeted by 40% each decade, going forward, we expect Berkshire shareholders would see single digit returns on their investment.
Warren Buffett's performance for each of the last 4 decades decreased by a stunning 40%! after setting a record during 1975-1984, Mr. Buffett's performance precipitously declined over the years as the easy money making opportunities started to disappear.
We were very surprised by the magnitude and the predictable nature of his declining performance. Mr. Buffett, unfortunately, never regained his former glory! Judging from his own historical performance, we think, returns for 2015 - 2024 could drop to single digits! We expect returns for the next decade could be as low as 7% per year.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.