Warren Buffett’s investment arm, Berkshire Hathaway, has become the first American technology company to reach a market capitalization of $1 trillion. Previously, Apple, Microsoft, Amazon and Nvidia had reached the billion mark. Outside of Wall Street, Aramco had achieved this.
The conglomerate led by the Oracle of Omaha is up nearly 30% this year on strong results from its core insurance business and economic optimism. “Berkshire has been doing the slow but safe thing,” said Steve Check, founder and chief investment officer of Check Capital Management. Bloomberg. His firm manages about $2 billion in assets, with Berkshire being its largest holding.. “It’s harder to make money the old way.”
Berkshire Hathaway has become an old friend to investors who never waver in the face of the exuberance of technology companies and their meteoric rises fueled by artificial intelligence. Berkshire’s rally this year has outpaced gains in the S&P 500, the market’s benchmark. That may not seem like much, given that the queen of the stock market, Nvidia climbs nearly 160%but companies like Amazon or Microsoft have not beaten the 18% of the Wall Street index.
Buffett’s company is the only company outside of the tech sector that rivals big tech. It’s having its best year in a decade and even Following the annual performance of the Magnificent Seven.
Buffett transformed Berkshire Hathaway from a struggling textile manufacturer into a financial empire. With the Oracle of Omaha, he experienced his first golden age focused on insurance and reinsurance, and now his investment portfolio is a true beacon for the market. In fact, the company is now a holding company that manages billions of investments.
Berkshire has delivered an annualized return of 20% since 1965, nearly double that of the S&P 500. Buffett is considered by many to be the best manager in the history of the markets.
