There’s a good chance that Berkshire Hathaway’s stock will lag the S&P 500 in the coming years. This is a matter of simple probabilities, and not a criticism of Berkshire Hathaway Chairman and Chief Executive Warren Buffett or his designated successors.

The Oracle of Omaha has $180 billion collectively invested in four brand-name companies with well-defined competitive advantages and phenomenal capital-return programs.

This conservative yet effective approach has made Buffett one of history's most successful investors. This selection process focused on Berkshire Hathaway’s current portfolio holdings, analyzing each position based on fundamental strength,