Warren Buffett’s Berkshire Hathaway reached a $1 trillion market capitalization on Wednesday, becoming the first non-technology company in the U.S. to achieve this milestone. Shares of the Omaha-based conglomerate have surged over 28% in 2024, far surpassing the S&P 500’s 18% gain. This achievement comes just two days before Buffett, known as the “Oracle of Omaha,” turns 94 years old.
Buffett’s Strategic Moves Propel Berkshire to New Heights
Berkshire Hathaway, under Buffett’s leadership, has transformed from a struggling textile business into a sprawling empire that includes BNSF Railway, Geico Insurance, and Dairy Queen. Unlike the tech giants in the trillion-dollar club, Berkshire’s success is rooted in its old-economy focus, with recent gains also bolstered by its significant stake in Apple.
Buffett’s recent actions, including a selling spree of stocks and boosting Berkshire’s cash reserves to a record $277 billion, have raised eyebrows. While Buffett advises against timing the market, these moves suggest a cautious approach to the current economic climate.
Berkshire’s Future and Market Sentiment
Berkshire’s strong second-quarter earnings have prompted analysts like UBS’s Brian Meredith to raise their price targets, with expectations that the company’s market value will continue to climb. Despite the high price tag of Berkshire’s original Class A shares, which Buffett has famously never split, the stock remains a coveted asset for long-term investors.
As Berkshire Hathaway continues to break records and solidify its position in the market, it stands as a testament to Buffett’s disciplined, long-term investment strategy.