Berkshire Hathaway Hits $1 Trillion Market Value, Joining Elite Trillion-Dollar Club

Berkshire Hathaway (BRKa.N) has joined the exclusive trillion-dollar club, reflecting investor confidence in the conglomerate Warren Buffett built into a powerhouse over nearly six decades. In early Wednesday trading, Berkshire's Class A shares climbed 1% to $698,901, pushing the company’s market value above $1 trillion. This milestone places Berkshire alongside tech giants like Apple (AAPL.O), Nvidia (NVDA.O), Microsoft (MSFT.O), Alphabet (GOOGL.O), Amazon (AMZN.O), and Meta Platforms (META.O).

Berkshire's valuation is based on its 553,234 Class A and 1,325,192,508 Class B shares outstanding as of July 23. The company's diverse portfolio, including Geico car insurance, BNSF railroad, Berkshire Hathaway Energy, Dairy Queen, and more, generated $22.8 billion in profit in the first half of 2024, marking a 26% increase from the previous year.

Despite slowing stock repurchases this year, Berkshire's shares have risen 29% in 2024, outpacing the S&P 500's 19% gain. This strong performance has added around $200 billion to its market value, underscoring the strength of its business model amid broader market volatility.

Buffett's Legacy and Strategic Moves

Warren Buffett, the legendary investor known as the “Oracle of Omaha,” has helmed Berkshire since 1965, guiding the company to unprecedented growth. Under his leadership, Berkshire's shares have surged more than 5,600,000%, or about 20% annually, nearly doubling the annualized gain of the S&P 500, including dividends.

Buffett, who turns 94 on August 30, continues to hold more than 14% of Berkshire despite having donated over half his shares to charity since 2006. His fortune stands at approximately $144.9 billion, making him the world’s sixth-richest person, according to Forbes.

Berkshire's stock portfolio remains heavily weighted in Apple, although the company has sold over half its Apple shares this year. These sales, along with other strategic divestitures, have contributed to Berkshire’s massive cash reserves, which have soared to a record $276.9 billion, primarily in U.S. Treasury bills. The sale of Apple shares alone could lead to an estimated $15 billion in taxes for Buffett this year.

Joining the Ranks of Trillion-Dollar Titans

With its market cap now exceeding $1 trillion, Berkshire Hathaway joins the ranks of the most valuable companies in the world, a group predominantly comprised of technology firms. Notably, Tesla (TSLA) previously crossed the $1 trillion mark but has since fallen below that threshold.

Berkshire’s ascent to a trillion-dollar valuation not only highlights the resilience and diversity of its business model but also reinforces Buffett’s legacy as one of the most successful investors in history. As Berkshire continues to navigate the economic landscape, its position as a bellwether of the American economy remains as strong as ever.