Börse Express – Warren Buffett is often at the top – but not in this ranking!

Warren Buffett is considered an exceptional investor in many ways. With its legendary investment company Berkshire Hathaway (WKN: A0YJQ2) he not only beat the market for years and decades, but literally duped him. The total return over many years and decades is still over 20% p. a. Even if the increasing size of the conglomerate makes it increasingly difficult to maintain this performance.

Nevertheless, there is at least one ranking in the S&P 500 in which the legendary manager is not at the forefront. Let us take a look below at why this actually appears to be a marginal note, but why as a foolish investor this statistic could be of general interest. Apart from the Oracle of Omaha.

The oldest, but not the most experienced CEO

As the news portal “finanzen.net” reports these days, the head of Berkshire Hathaway at the age of 89 is currently the oldest CEO of an S&P 500 company. But not the one with the most experience within this broad US index.

With his 50 years in the management of his investment company Berkshire Hathaway, Warren Buffett is in a glorious second place on the current list, since the oracle has been in charge since 1970. The current CEO of L brands, a company that includes the Victoria’s Secret brand, is still a bit longer on duty at 57. Or, more precisely, a seven year longer tick.

Nonetheless, Leslie Wagner’s tenure could end soon, as the official has recently come under fire. This would potentially put Warren Buffett at the top of the list, even if he didn’t top the list of longest-serving CEOs here.

Why is that important?

The logical question that follows in a certain way is why this is important for other investors. Ultimately, experience says little about return or future performance. And from the past, however glorious it may be, investors tend to be unable to buy much.

Nonetheless, the length of the term suggests the future return potential, at least in some ways. As the article by “finanzen.net” also states, long terms would always lead to better returns. The golden years of a tenure as CEO, for example, would be in the range between the eleventh and fifteenth years, so at least historically, long-time managers were more successful.

A finding that makes sense from a foolish perspective: Especially when managers finally identify with their company particularly strongly and make a difference over years and decades, they often act strategically and not just short-term success-oriented. There should also be certain reasons why a CEO is not sawed off, which should also speak for many correct decisions here.

The Foolish quintessence

Ultimately, it doesn’t matter whether Warren Buffett is the longest serving CEO in the S&P 500 or on the global stock exchanges. It is much more important to recognize that a long term of office for a group or company boss can be synonymous with future performance. Precisely because such an official thinks long-term.

This can therefore be a certain analytical aspect that can be taken into account when evaluating management. A factor that is often difficult for many investors to quantify, although the length of the term of office is basically a measurable factor.