It's the First Non-Tech US Company Worth $1T

Berkshire Hathway passes milestone days ahead of Warren Buffett's 94th birthday
By Rob Quinn,  Newser Staff
Posted Aug 29, 2024 7:50 AM CDT
It's the First Non-Tech US Company Worth $1T
Warren Buffett speaks during a game of bridge following the annual Berkshire Hathaway shareholders meeting in 2019.   (AP Photo/Nati Harnik, File)

Berkshire Hathaway hit a major milestone on Wednesday, two days before CEO Warren Buffett's 94th birthday. The company passed $1 trillion in market capitalization, with the price of Class A shares rising to more than $696,000, far more than the cost of the average US home, Quartz reports. The conglomerate, which Buffett has led for more than 50 years, is the first non-tech-focused American company to pass the $1 trillion mark. The other most valuable US companies are Apple, Nvidia, and Microsoft—all worth more than $3 trillion—and Amazon, Google, and Meta. Tesla hit the $1 trillion mark in late 2021 but it is now worth less than two-thirds that amount.

In his annual letter to investors early this year, Buffett predicted that the company would perform "slightly better" than the average corporation but warned that "we have no possibility of eye-popping performance," CNN reports. The "Oracle of Omaha" was incorrect: The company's shares are up almost 29% for the year so far and it has added more than $200 billion in market value, per Quartz.

Berkshire Hathway is sitting on a record amount of cash after some big sell-offs this year, including around half its stake in Apple. It still owns companies including Geico, BNSF Railway, and Dairy Queen, among others, and has large stakes in companies including American Express and Coca-Cola. Cathy Seifert, Berkshire analyst at CFRA Research, says the $1 trillion valuation "is a testament to the firm's financial strength and franchise value," CNBC reports. "This is significant at a time when Berkshire represents one of the few remaining conglomerates in existence today." (More Berkshire Hathaway stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X