Buffett’s Berkshire busts into the trillion-dollar club

investmentnews.com:

Berkshire Hathaway Inc. became the first US company outside of the tech sector to surpass $1 trillion in market value.

Shares of Warren Buffett’s conglomerate rose as much as 0.8% on Wednesday to push its market capitalization above the trillion-dollar mark for the first time. The stock has rallied this year on strong insurance results and economic optimism. The Omaha, Nebraska-based company joins the ranks of a small group to crack the milestone, dominated by technology giants like Alphabet Inc., Meta Platforms Inc. and Nvidia Corp.  

“Berkshire has done it the slower, but more sure, way,” said Steve Check, the founder and chief investment officer of Check Capital Management. His firm has about $2 billion in assets under management, with Berkshire as their largest holding. “It’s harder to make money the old-fashioned way.”

Berkshire’s rally this year has outpaced the S&P 500’s gains, with the company off to one of its best annual starts in a decade. It’s gained 30% in 2024, while the market benchmark is up 18%. The company isn’t that far behind the so-called Magnificent Seven: a gauge of the biggest tech stocks is up 35%this year.

Buffett has spent the bulk of his life turning Berkshire Hathaway from a struggling textile maker into a sprawling business empire. He shaped the company alongside longtime business partner Charlie Munger, who died in November at age 99. 

Berkshire’s market value climbed by roughly 20% a year from 1965 through last year — nearly double the S&P 500’s annual return in that time. That’s turned Buffett into one of the richest people in the world, and perhaps the most prolific investor ever. 

The conglomerate’s strength comes as optimism for the economy builds, with the Federal Reserve expected to