This week, Warren Buffett's Berkshire Hathaway (Berkshire) achieved a historic milestone when its Class A** share price crossed the $600,000 mark for the first time.
The surge in stock prices has made it possible that the conglomerate, which represents traditional industries, will soon join the elite club of trillion-dollar dollars, an achievement that no American company outside of the tech industry has achieved.
As of now, Berkshire A is trading at $610,000 in shares, and its market capitalization has soared to 8,809At $6.5 billion, it is the seventh-largest publicly traded company in the United States.
The Omaha-based giant is up 184%, up 555%, up 12 year-to-date43%, up 30 in the past 52 weeks54%。
It is still $120 billion short of a trillion market capitalization.
Berkshire's market capitalization at the end of 2023 was around $777 billion, compared to $682 billion at the end of 2022. The journey from $500,000 to $600,000 for Berkshire Class A shares took about two years.
During this time, Buffett executed major strategic initiatives. These include the $11.6 billion acquisition of insurance company Alleghany, a nearly 30% stake in Occidental Petroleum and GEICO's successful turnaround. In addition, Buffett has strategically invested billions of dollars in Treasury bonds to take advantage of rising interest rates and expand his already lucrative stake in Japan** companies.
Berkshire introduced the lower Category B in 1996. At that time, Class A traded just over $30,000, while Class B started trading at 1 30 for Class A, which was about $1,000. Today, Berkshire's Class B deal is just over $400, in part because Berkshire made a split after it acquired rail operator BNSF in 2010.
Berkshire could be included in the MAG 7 list.
As Berkshire's market capitalization has risen, there has been a debate about its potential inclusion in the "Mag 7" list.
Here's a group of ** that led the market soar in 2023, including Microsoft, Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Tesla.
Strategas Securities, a well-known research firm on Wall Street, has identified Berkshire as one of the top three in the MAG 7 group that could replace Tesla, alongside Broadcom and Eli Lilly. According to Strategas, Berkshire is currently the most suitable "candidate" to join the replacement for MAG 7 based on its market capitalization weighting and earnings contribution to the S&P 500.
Editor-in-charge: Ren Haopeng |Review: Li Zhen |Supervisor: Wan Junwei.
*: China ** newspaper).