Berkshire Hathaway has become the first non-tech company in the U.S. to surpass $1 trillion in market value.
Shares of Warren Buffett’s conglomerate rose on Wednesday to push its market capitalization above the mark for the first time. The stock has risen this year thanks to strong results from insurers and economic optimism.
The Omaha, Nebraska-based company joins the ranks of a small group that has surpassed the milestone, dominated by tech giants such as Alphabet, Meta Platforms and Nvidia. “Berkshire has done it more slowly but surely,” said Steve Check, founder and chief investment officer of Check Capital Management. His firm has about $2 billion in assets under management, with Berkshire as its largest holding. “It’s harder to make money the old-fashioned way.”
Berkshire’s rally this year has outpaced gains for the S&P 500, and the company is off to one of its best annual starts in a decade. It has gained 30% in 2024, while the market benchmark has risen 18%.
The company is not far from the so-called Magnificent Seven: an indicator of the biggest tech stocks is up 35% this yearBuffett has spent much of his life turning Berkshire Hathaway from a struggling textile manufacturer into a sprawling business empire. He built the company alongside partner Charlie Munger, who died in November at age 99. Berkshire’s market value rose about 20% annually from 1965 through last year, nearly double the annual return of the S&P 500 over that period. This has made Buffett one of the richest people in the world and perhaps the most prolific investor in history.
The conglomerate’s strength comes as optimism about the economy grows, with the Federal Reserve expected to cut interest rates at its September meeting. In August, consumer confidence hit its highest level in six months. Berkshire’s businesses range from truck-stop operator Pilot Travel Centers to ice cream chain Dairy Queen and battery brand Duracell.
