Berkshire Hathaway Reaches Historic $1 Trillion Valuation

Berkshire Hathaway's market value surpassed $1 trillion for the first time, underscoring investor confidence in the Warren Buffett-led conglomerate. Joining six other U.S. tech giants, this milestone comes as Berkshire's diverse businesses and notable stock portfolio continue to demonstrate strong profitability and prudent financial management.

Berkshire Hathaway reached a historic milestone on Wednesday, closing with a market value exceeding $1 trillion for the first time. The achievement reflects investor confidence in the conglomerate built by Warren Buffett over nearly six decades.

With this milestone, Berkshire Hathaway joins the ranks of six other U.S. companies valued at over $1 trillion, including Apple, Microsoft, and Amazon. Despite having a portfolio containing some tech assets, Berkshire distinguishes itself with its diverse array of old-economy businesses like Geico, BNSF railroad, and Dairy Queen.

This valuation boost comes as Berkshire's operating businesses generated $22.8 billion in profit in the first half of the year, a 26% increase from 2023. Buffett's prudent financial strategies, such as selling off significant portions of Apple and Bank of America stock, have also led to a rise in Berkshire's cash reserves to $276.9 billion. However, market analysts advise caution, noting the stock may be fully priced.

(With inputs from agencies.)