Shares in Warren Buffett’s Berkshire Hathaway became the first U.S. non-tech company to reach a $1 trillion market value on Wednesday, continuing its impressive 2024 rebound.
Berkshire shares have rallied more than 28% in 2024, significantly outperforming the S&P 500’s 18% gain.
U.S. analysts noted that this milestone was achieved just two days before the “Oracle of Omaha” turns 94 years old.
Berkshire joined tech giants led by Apple (its largest single investment), Nvidia, Microsoft, Alphabet, Amazon, and Meta.
The shares were up 0.8% to $696,502.02 on Wednesday, surpassing the $1 trillion mark.
The valuation “is a testament to the firm’s financial strength and franchise value,” said Cathy Seifert, a Berkshire analyst at CFRA Research. “This is significant at a time when Berkshire represents one of the few remaining conglomerates in existence today,” she told CNBC.
Berkshire’s diverse portfolio includes assets from retailing to trains, running shoes, and clothing. However, its primary assets are its massive insurance operations, the largest in the world.
Additionally, Berkshire’s share portfolio has rebounded to approximately $300 billion in value. After selling half its Apple stake in the June quarter and accumulating nearly $300 billion in cash, the company has invested heavily in U.S. government bonds, making it the single largest investor in these securities.
Besides reducing its Apple holdings, Berkshire has also cut its stake in Bank of America since June 30 and has sold nearly all of its stake in Chinese EV maker BYD.
Several years ago, Tesla, Elon Musk’s company, surpassed Berkshire in market value. However, Berkshire now has a valuation that is more than $350 billion larger than Musk’s struggling company.