Warren Buffett knows what he's doing, and has the numbers to prove it. In the Friday edition of the Wall Street Journal Fund Track, Sam Mamudi reports that Buffett's Berkshire Hathaway has beaten every mutual fund over the past 45 years.

Berkshire Hathaway has generated 20 percent annualized gains since 1965. Citing numbers from Morningstar, Mamudi notes that only two mutual funds come close to Berkshire: Fidelity Magellan Fund, with a return of 16.3 percent a year during Buffett's chairmanship of Berkshire, and Templeton Growth Fund, with a 13.4 percent return on average.

Mamudi then reminds his readers that comparing Berkshire's performance with that of mutual funds doesn't make for an apples-to-apples comparison, since Buffett has more structural freedom than mutual fund managers.

"But the differences highlight the limits of mutual funds, particularly the short-term pressures many managers face," Mamudi writes. 

Edited by: Daniel Tovrov


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