ALBAWABA - The market capitalization of Berkshire Hathaway, chaired by CEO and businessman Warren Buffett, topped $1 trillion in market value on Wednesday, making it the first non-technology business in the United States to achieve this attractive achievement.
Over the course of 2024, the conglomerate's stock has increased by more than 28 percent, which is significantly higher than the 18 percent rise seen in the S&P 500, CNBC reports. Just two days before the "Oracle of Omaha" turns 94 years old, the barrier of one trillion dollars was passed.
The rise of the conglomerate further solidifies Buffett's status as one of the most prominent financiers in the history of the global economy. Since he took over as CEO of Berkshire in 1965, the company has had an annual investment gain of almost 20 percent on average, according to New York Times.
In addition to holding shares in a large number of blue-chip corporations such as Apple and Coca-Cola, Berkshire owns and operates a number of enterprises, including the insurer GEICO and the Burlington Northern Santa Fe railroad.
Greggory Warren, a Morningstar analyst who follows the company, said “I, unfortunately, don’t have an answer as to why it is up as much as it is,” calling Berkshire a defensive stock, which is a company that has the potential to do better than the overall market during times of instability, as reported by NYT.
“Other than that perhaps some market participants weren’t buying into the tech-driven rally and wanted the downside protection of a Berkshire if things went south, or some thought Berkshire would benefit from A.I. through its large Apple stake,” Warren added.
