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Shares of Berkshire Hathaway, the conglomerate led by billionaire investor legend Warren Buffett, rose to an all-time high on Monday after the company announced record earnings over the weekend, but Buffett said Berkshire’s In the past, the inflated size means its market-beating methods may be genuine.
important facts
Berkshire Hathaway’s Class A shares rose more than 2% to $647,039 shortly after the market opened, while at the same time the company’s “baby” Class B shares hit a record price of $430.
The gains, which are low-volatility Berkshire’s best day since August, come after the company reported record annual operating profits of $96 billion and record cash holdings of $168 billion.
In his annual letter to shareholders, Buffett lamented that the days of Berkshire’s “remarkable performance” are behind him, citing Berkshire’s size and overall market concentration, but he believes Berkshire’s long-term The company still has a history of beating the entire market. Really impressive.
Berkshire’s 18% year-to-date return has outpaced the S&P 500’s 7% rise, and the results become even more impressive over time. Berkshire has returned 271% over the past 10 years and soared 50,799% over the past 40 years, compared to the S&P’s gains of 232% and 4,213%, respectively, according to FactSet data.
big number
Approximately $930 billion. This was Berkshire’s highest market capitalization ever on Monday. That’s a far cry from the roughly $20 million valuation at which Mr. Buffett, 34, bought Berkshire in 1965, when the company’s Class A shares were trading at $19.
Main background
Berkshire was a little-known textile manufacturer in western Massachusetts until Buffett transformed the company into the public vehicle for stock pickers to follow in their investments that it is today. Berkshire’s annual report on Saturday will be the first in nearly 50 years to be released in the absence of Charlie Munger, a longtime aide to Berkshire and Mr. Buffett who died in November at age 99. Berkshire’s majority-owned private companies include insurance giant Geico and ice cream chains. Dairy Queen and battery maker Duracell, but Berkshire is best known for the nearly $400 billion investment portfolio in publicly traded companies managed by Buffett. Apple is by far Berkshire’s largest holding, with Berkshire’s $165 billion stake in the iPhone maker accounting for nearly half of its portfolio. “There are only a handful of companies left in this country that can truly change the course of Berkshire, and those companies continue to be singled out by us and other companies endlessly,” Buffett said Saturday. Told.
Forbes rating
Forbes estimates that Buffett’s net worth is more than $140 billion, making him the fifth richest person in the world. Buffett, once the world’s richest man, has signed on as the founder of the Giving Pledge, pledging to donate the majority of his wealth to philanthropy.
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