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Berkshire: capitalization at $ 700bn, will it be the next trillion company?

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In the club of the trillion companies, it could soon also enter the Berkshire Hathaway by Warren Buffett. Shares in the investment conglomerate of billionaire Warren Buffett continue the rally, which led to the company’s market capitalization above 700 billion. A level that brings the goal of the trillion dollars.

In the small group of trillion-dollar comrades, he stands out Tesla (worth $ 1.07 trillion), Amazon ($ 1.66 trillion), Microsoft ($ 2.37 trillion) and Apple ($ 3 trillion).

The Berkshire Hathaway Race

Today the Class B stock, listed on Wall Street, marks an increase of more than 1%, which brings growth in these first sessions of the year to + 5%. With the Federal Reserve set to more aggressively reduce its stimulus, Berkshire Hathaway benefited from broad market rotation towards safer high-growth stocks.

In 2021 the value of the shares, which today move around 318 dollars, marked a 30% increase, slightly exceeding the 27% gain of the benchmark S&P 500 index.

The group, Buffett’s investment vehicle, owns a portfolio of over 60 companies including Geico, Duracell and Dairy Queen, as well as approximately 5% in Apple. A bet, the latter, considered one of the most successful in the history of the great US investor.

Berkshire Hathaway began buying Apple stock in 2016, eventually owning 5% of the Cupertino-based company in mid-2018 for a total outlay of $ 36 billion. Now, with Apple reaching 3,000 billion capitalization, the first company in the world to do so, Buffett’s stake is worth 160 billion. In addition, Berkshire also enjoys Apple dividends, averaging $ 775 million annually.

In the third quarter of the year, meanwhile, the American financier conglomerate – which owns dozens of companies including See’s Candies and Geico, and holds multibillion-dollar stakes in Apple, Coca-Cola and other public companies – spent $ 1.4 billion in the purchase of new shares And he grossed more than double ($ 3.4 billion to be exact) in the sale of equity investments. The latest transactions brought net sales of shares in the nine months to September 30 to $ 7 billion.

Buffett and his team have invested in technology companies such as the Snowflake cloud data platform and Brazilian fintech Nubank, a quintet of Japanese trading companies, and a basket of pharmaceutical companies. At the same time, holdings in JPMorgan, Goldman Sachs in the US “Big Four” airlines were reduced.

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