An Old-School Investor, Ctd

In response to Surowiecki and Andrew Ross Sorkin, Felix Salmon takes Warren Buffett down a notch:

Buffett famously avers a distaste for being judged on Berkshire Hathaway’s stock-market returns, preferring to use its book value as a measure, but the fact is that Berkshire has underperformed the S&P 500 for the past 1 year, 2 years, 3 years, and 5 years. At some point, Berkshire still outperforms, but I’m not sure where that point is: I’m having difficulty finding a suitable total-return index so that I can be sure that I’m including the effect of reinvesting the dividends which the S&P 500 pays out but Berkshire does not.