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A comment on Berkshire Hathaway Shareholder letter 2022 [pdf].

Re:Berkshire Hathaway Shareholder letter 2022 [pdf] by mg on Saturday February 25, 2023 @10:39AM (#34937440)
According to the first page of the letter, they have a pretty good track record.

In 58 years, they outperformed the S&P500 39 times. That is 67% of the time, which according to R comes down to a p value of 0.01:

    binom.test(x=39, n=58, p=.5)    
    => p-value = 0.01193
On the other hand, countless investors started out 58 years ago and 1 in 100 had a performance like this or better by pure chance.
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Re:Berkshire Hathaway Shareholder letter 2022 [pdf] by sethev on Saturday February 25, 2023 @11:00AM (#34937596)
On it's face, it seems implausible that 1 in 50 investors were as successful as Warren Buffet.
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Re:Berkshire Hathaway Shareholder letter 2022 [pdf] by gtheodor on Saturday February 25, 2023 @11:09AM (#34937682)
In 1984, Warren Buffett wrote an article to address this criticism - https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-a...
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Re:Berkshire Hathaway Shareholder letter 2022 [pdf] by haakonhr on Sunday February 26, 2023 @11:37AM (#34946830)
Not going to do the math here, but the magnitudes are quite important.. It seems like the worst years are around 20% worse than the S&P, but there are several years where their outperformance is more than 100%.
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