Buffett has been in a defensive mode as of late
Buffett’s Berkshire Hathaway hits $1 trillion market value، first U.S. company outside of tech to do so
Warren Buffett’s Berkshire Hathaway reached a $1 trillion market capitalization on Wednesday، the first non-technology company in the U.S. to score the coveted milestone.
Shares of the Omaha-based conglomerate have rallied more than 27% in 2024، nearly doubling the S&P 500′s return. The $1 trillion threshold was crossed just two days before the ‘Oracle of Omaha’ turns 94 years old.
The shares were up 1.2% on Wednesday، allowing it to top the $1 trillion mark، per FactSet.
Unlike the six other companies in the trillion dollar club (Apple، Nvidia، Microsoft، Alphabet، Amazon، Meta)، Berkshire is known for its old-economy focus as the owner of BNSF Railway، Geico Insurance and Dairy Queen. (Although its sizable Apple position has helped drive recent gains.)
Buffett took control of Berkshire، a struggling textile business، in the 1960s and transformed the company into a sprawling empire that encompasses insurance، railroad، retail and energy with an unmatched balance sheet and cash fortress.
Buffett has been in a defensive mode as of late، dumping a massive amount of stock، including half of his Apple stake، while raising Berkshire’s cash pile to a record $277 billion at the end of June.
While Buffett famously never times the market and advises others to not try to either، these recent moves served as a wake-up call to some of his followers on Wall Street، who believe he saw some things he did not like about the economy and market valuation.
Berkshire invests the majority of its cash in short-term Treasury bills، and its holding in such securities — valued at $234.6 billion at the end of the second quarter — has exceeded the amount the U.S. Federal Reserve owns.
