# Buffett’s Gains Beat Every Mutual Fund

Many investors can only look on with envy when Warren Buffett says his investors have seen 20% annualized gains over the past 45 years—even the best mutual funds pale by comparison.

Only two funds are even on the horizon: Fidelity Magellan Fund, which has returned 16.3% a year during Mr. Buffett's chairmanship of Berkshire Hathaway Inc., and Templeton Growth Fund, up 13.4% a year on average, according to investment researcher Morningstar Inc.

Berkshire's Class A shares have delivered returns of 22% a year since 1965, based on market price, though Mr. Buffett prefers to judge gains according to book value, which stand at 20.3%.

Using Berkshire's market-price gains for fairer comparison with mutual funds, $10,000 invested with Mr. Buffett on Oct. 1 1964—equivalent to about$60,000 in today's dollars—would now be worth about $80 million. The same amount in Fidelity's fund would have grown to about$9.1 million, while Templeton Growth investors would now have roughly \$2.9 million.

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