Berkshire Hathaway Shares Soar Past $750,000, Marking Historic Milestone
Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, has achieved a remarkable milestone as its Class A shares surpassed $750,000. This surge has propelled the company’s market value to $1.1 trillion, solidifying its position as the seventh-largest company in the S&P 500.
The company’s Class A shares reached an intraday high of $755,968 before closing slightly lower. The upward trend continued on Tuesday, with the stock price hitting a record high of $759,923.94. This impressive 4% surge followed a positive earnings report that exceeded market expectations.
Berkshire Hathaway’s fourth-quarter operating earnings saw a substantial 71% increase, totaling $14.53 billion. This growth was primarily driven by a surge in investment income, partly attributed to interest earned on the company’s substantial $334 billion cash position.
In his annual shareholder letter, Buffett reaffirmed his confidence in American businesses, highlighting Berkshire’s $272 billion investment in public stocks at the end of 2024. The remaining market value is attributed to the company’s privately-owned investments.
Notably, Buffett has consistently resisted splitting the Class A shares since taking over the company in 1965. This strategy aligns with his philosophy of attracting long-term investors rather than those seeking short-term gains. To provide an alternative for smaller investors, Berkshire introduced lower-priced Class B shares in 1996, which currently trade around $500 following a 2010 stock split.
Buffett’s reluctance to split the Class A shares stems from concerns about attracting uninformed investors who might not fully understand the company’s long-term value proposition. This milestone follows the historic moment in March 2022 when Berkshire’s Class A shares first crossed the $500,000 mark.
As Berkshire Hathaway continues to demonstrate strong financial performance and maintain its unique stock structure, investors and market observers alike will be watching closely to see how this iconic company navigates the evolving economic landscape.
