BRK.B vs SPY Stock Comparison: AI Score, Valuation, Performance and Upside
BRK.B and SPY represent the fundamental debate: can the best value investor (Buffett) beat the market index over the long term? Historically, Berkshire outperformed the S&P 500 dramatically over 1965-2010. In more recent years (2010-2024), the S&P 500 has frequently outperformed Berkshire as tech-driven bull markets rewarded growth stocks over Buffett's value approach. Post-Buffett succession is the key risk factor for BRK.B; mega-cap concentration is SPY's key risk.
BRK.B vs SPY — Berkshire Hathaway (the active value investing conglomerate with insurance float, operating business cash flows, $150B+ reserve, and 50-year exceptional compounding track record under Buffett) versus SPY (the S&P 500 passive index ETF providing instant diversification across 500 companies at 0.0945% with the market's long-term 10% annual return and quarterly dividends).
BRK.B holds the edge across 1 of 5 key metrics in this comparison.
- want single-stock Buffett exposure rather than passive index — owning Berkshire is a bet on value investing culture and capital allocation excellence vs passive market-weight indexing
- value operating business earnings (insurance, railroad, energy) that provide cash flow independent of equity market levels — Berkshire's operating earnings are less volatile than pure equity market exposure
- see Berkshire's $150B+ cash reserve as valuable insurance in a potential market correction — Buffett deploying cash during a downturn creates an asymmetric upside moment for BRK.B shareholders
- are comfortable with no dividend, succession uncertainty, and the genuine risk that Berkshire may not outperform the S&P 500 in tech-driven bull markets where Buffett's value approach historically underperforms
- prefer passive indexing to eliminate stock selection and manager risk — SPY's 0.0945% expense ratio ensures you keep 99.9% of your returns vs paying active managers
- value automatic diversification across 500 companies in 11 sectors without tracking 150 individual Berkshire holdings or understanding insurance float accounting
- want quarterly dividend income from SPY's 500 constituent dividend payers vs Berkshire's no-dividend policy
- are comfortable with mega-cap technology concentration risk (top 5 companies = 25%+ weight) and no downside protection in market corrections vs Berkshire's operating business cash flow floor
| Metric | BRK.B | SPY |
|---|---|---|
| ETF scorei | 24.0 | 79.0 |
| Latest closei | N/A | $761.69 |
| 1M returni | N/A | -0.96% |
| 6M returni | N/A | +17.74% |
| 1Y returni | N/A | +16.29% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | BRK.B | SPY |
|---|---|---|
| 1Y ago | N/A | $11.76K (+17.6%) started 2025-09-18 |
| 5Y ago | N/A | $20K (+100.0%) started 2021-09-20 |
| 10Y ago | N/A | $49.34K (+393.4%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | BRK.B | SPY |
|---|---|---|
| Expense ratioi | N/A | 0.09% |
| Total assets (AUM)i | N/A | $811.94B |
| Dividend yieldi | N/A | 0.98% |
| Trailing P/Ei | N/A | 24.61 |
| Betai | 0.16 | 1.02 |
| 52-week change | N/A | 16.29% |
| Metric | BRK.B | SPY |
|---|---|---|
| 1Y returni | N/A | +16.29% |
| 6M returni | N/A | +17.74% |
| 1M returni | N/A | -0.96% |
| 1Y Sharpe ratio | N/A | 0.89 |
| Betai | 0.16 | 1.02 |
| Dividend yieldi | N/A | 0.98% |
| 5Y CAGR | N/A | +13.37% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | BRK.B | SPY |
|---|---|---|---|
| 1Y | Growthi | N/A | +16.29% |
| CAGRi | N/A | +16.30% | |
| Volatilityi | N/A | 12.88% | |
| Sharpe ratioi | N/A | 0.89 | |
| Sortino ratioi | N/A | 1.28 | |
| Max drawdowni | N/A | 8.88% | |
| Current drawdowni | N/A | 2.08% | |
| Avg drawdowni | N/A | 1.45% | |
| Ulcer Indexi | N/A | 2.14% | |
| Max daily dropi | N/A | 2.70% | |
| Max wkly dropi | N/A | 3.82% | |
| 5Y | Growthi | N/A | +87.16% |
| CAGRi | N/A | +13.37% | |
| Volatilityi | N/A | 17.19% | |
| Sharpe ratioi | N/A | 0.56 | |
| Sortino ratioi | N/A | 0.80 | |
| Max drawdowni | N/A | 24.50% | |
| Current drawdowni | N/A | 2.08% | |
| Avg drawdowni | N/A | 5.57% | |
| Ulcer Indexi | N/A | 8.45% | |
| Max daily dropi | N/A | 5.85% | |
| Max wkly dropi | N/A | 11.50% | |
| 10Y | Growthi | N/A | +316.90% |
| CAGRi | N/A | +15.35% | |
| Volatilityi | N/A | 17.95% | |
| Sharpe ratioi | N/A | 0.64 | |
| Sortino ratioi | N/A | 0.89 | |
| Max drawdowni | N/A | 33.72% | |
| Current drawdowni | N/A | 2.08% | |
| Avg drawdowni | N/A | 4.31% | |
| Ulcer Indexi | N/A | 7.16% | |
| Max daily dropi | N/A | 10.94% | |
| Max wkly dropi | N/A | 17.97% |
| Category | BRK.B | SPY |
|---|---|---|
| Fund name | BRK.B | State Street SPDR S&P 500 ETF Trust |
| Type | ETF | ETF |
| Expense ratioi | N/A | 0.09% |
| Total assets (AUM)i | N/A | $811.94B |
| Dividend yieldi | N/A | 0.98% |
- Operating business cash flow diversification: Berkshire's operating businesses (insurance, railroad, energy, manufacturing) generate $25-30B+ in operating earnings annually without depending on equity market prices
- Insurance float for free leverage: Berkshire's insurance float provides low-cost capital to invest — a structural investing advantage unavailable to mutual fund or ETF competitors
- 50+ year compounding track record: Berkshire has compounded book value at ~20% annually over 50+ years under Buffett — one of the most exceptional long-term records in investing history
- Instant 500-company diversification at 0.0945%: SPY provides exposure to the 500 largest US companies for less than $1 per $1,000 invested annually — eliminating single stock concentration risk
- S&P 500's long-term 10% average annual return: over 30+ years, the S&P 500 has returned approximately 10% annually — a benchmark most active managers (including Berkshire in recent periods) struggle to beat consistently
- Dividend income included: SPY distributes dividends from its 500 constituent companies quarterly — providing income that Berkshire does not
- No dividend for income investors: Berkshire does not pay dividends — all value creation is through book value and stock price appreciation, disadvantaging income-seeking investors vs dividend ETFs
- Warren Buffett succession uncertainty: Greg Abel succeeds Buffett, but transitioning from a 60-year unique capital allocator creates genuine uncertainty about maintaining exceptional compounding
- Scale disadvantage vs S&P 500: Berkshire's $900B+ market cap means it needs massive investments to outperform — finding opportunities large enough to move the needle becomes increasingly difficult
- Technology concentration at index level: the top 5 S&P 500 companies (Apple, Microsoft, Nvidia, Amazon, Meta) represent 25%+ of SPY weight — SPY is not as diversified as 500 holdings implies given mega-cap concentration
- No active manager downside protection: SPY holds every S&P 500 stock regardless of valuation — in market corrections, SPY falls proportionally without any defensive repositioning possible
- Expense ratio disadvantage vs IVV: iShares IVV and Vanguard VOO offer similar S&P 500 exposure at lower expense ratios (0.03%) vs SPY's 0.0945%
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