Warren Buffett, chairman and CEO of Berkshire Hathaway, announced what amounts to bad news for the firm. Berkshire Hathaway reported profits of 24 billion dollars for the year, and while this appears to be a monumental gain for any company, it is actually slower growth than the overall investment markets saw for that time period.

Berkshire Hathaway stock rose by 14.4 percent for that time period, which is reason for this assessment by Mr. Buffett. The S & P 500 rose at a rate higher than the 14.4 percent share gain in company stock value for 2012.

While investors would likely be happy with that return on their investment, Mr. Buffett sees room for improvement. He also notes that Berkshire Hathaway historically performs better when the overall market stays steady in value or drops. Bear market conditions leave much more room for outperforming them than a bull market condition would.