Berkshire Hathaway BRK.B became the first non-tech stock to hit a trillion-dollar market cap today, joining the likes of Apple AAPL, Microsoft MSFT, Nvidia NVDA, and Amazon AMZN.
Led by its famous CEO and renowned investor Warren Buffett, Berkshire has continued its compelling expansion as a holding company that owns more than 90 subsidiaries in insurance, railroads, utilities, and manufacturing services among other lucrative markets.
The Legacy of Berkshire’s Acquisitions
Founded in 1889, Buffett took a controlling stake in Berkshire Hathaway in 1965. Berkshire has acquired or taken a majority stake in many lucrative companies throughout its history with the largest (not including debt) being the 2016 acquisition of industrial goods manufacturer Precision Castparts for $37.2 billion.
Other Lucrative Acquisitions:
Geico Insurance (Acquired in 1995 for $2.3 billion)
General Reinsurance (Acquired in 1998 for $22 billion)
Pacificorp (Electric power distributor acquired in 2006 for $9.4 billion)
Marmon Holdings (Industrial manufacturing services company acquired in 2008 for $4.5 billion)
Burlington Northern Santa Fe (Railway company acquired in 2009 for $34 billion)
Lubrizol (Chemical products company acquired in 2011 for $9.7 billion)
Heinz (Iconic ketchup maker acquired in 2013 for $28 billion and merged to form Kraft Heinz KHC)
Forecasting Berkshire’s Growth Trajectory
Based on Zacks estimates, Berkshire’s total sales are expected to increase 1% in fiscal 2024 and FY25 with projections over $368 billion. Berkshire’s bottom line is projected to expand 15% this year and is expected to rise another 1% in FY25 to $19.86 per share.
The Backbone of Berkshire’s Success: Strong Balance Sheet
As a cash cow, Berkshire currently has $42.32 billion in cash and equivalents with a liquidity peak of $88.18 billion in 2021. Furthermore, Berkshire is thought to have over $900 billion in total assets compared to $500 billion in total liabilities.
Price Performance & Valuation Analysis
Berkshire’s stock has soared +30% year to date to top the S&P 500’s +18% and all of its trillion-dollar market cap peers outside of Nvidia. Over the last three years, Berkshire is sitting on +60% gains which has also outperformed the broader market while trailing Nvidia but topping Apple, Amazon, and Microsoft.
Striking the Right Balance: Market Valuation Insights
Trading around $465, Berkshire’s stock is at a 23.5X forward earnings multiple and roughly on par with the benchmark’s PE valuation. BRK.B also trades nicely beneath its decade-long high of 30.4X forward earnings and closer to the median of 21X.
The Vantage Point: What Lies Ahead
Berkshire Hathaway’s stock currently lands a Zacks Rank #3 (Hold). After such a sharp YTD rally in BRK.B, there could be better buying opportunities ahead. However, long-term investors may still be rewarded which Warren Buffett has emphasized when it comes to owning.
The Rise of Berkshire Hathaway Stock Reaching a Trillion-Dollar Market Cap
Feast your eyes on the majestic ascent of Berkshire Hathaway shares. The stock, known for its stalwart reputation and steady growth, has recently reached a significant milestone by achieving a market capitalization of one trillion dollars.
An Unwavering Climb Towards Success
Throughout the annals of financial history, Berkshire Hathaway has stood as a beacon of stability and reliability in the tumultuous world of investments. Led by legendary investor Warren Buffett, the conglomerate has amassed a loyal following of investors who trust in its enduring value and sound financial principles.
A Symbol of Endurance in the Market
As we witness Berkshire Hathaway’s shares soar to new heights, it serves as a testament to the resilience and strength of this iconic company. In the face of market fluctuations and economic uncertainty, Berkshire Hathaway remains a steadfast entity that investors can rely on for long-term growth and stability.
Strategic Investment Decisions Fuel Growth
Behind the scenes of Berkshire Hathaway’s remarkable journey to a trillion-dollar market cap lies a series of shrewd investment decisions orchestrated by Warren Buffett and his team of experts. Their strategic vision and keen understanding of the market have propelled the company forward, creating wealth and value for shareholders along the way.
Celebrating a Historic Milestone
As investors bask in the glow of Berkshire Hathaway’s historic achievement, it is a moment to celebrate not just the financial milestones, but also the enduring legacy of Warren Buffett and his unparalleled contributions to the world of investing. The journey to a trillion-dollar market cap is a testament to the power of steadfast leadership, prudent decision-making, and unwavering commitment to excellence.
A Timeless Investment Opportunity
For those seeking a beacon of stability in the ever-changing landscape of the stock market, Berkshire Hathaway stands out as a timeless investment opportunity. With a track record of success and a bright future ahead, the company continues to attract investors who value long-term growth and financial security.
