Berkshire Hathaway, the investment conglomerate founded by billionaire Warren Buffett, maintained its new year rise on Thursday, raising the company’s market value to a new high of over $700 billion and putting it on the verge of reaching the trillion-dollar mark.
Berkshire Hathaway’s stock jumped more than 1% on Thursday, extending its winning streak to four days, as investors continue to shift away from high-growth stocks and toward safer options.
Berkshire Class B shares have increased more than 4% in the first week of 2022, putting the business at all-time highs and valuing it at more than $700 billion.
The legendary investing empire of the Oracle of Omaha controls a portfolio of more than 60 firms, including Geico, Duracell, and Dairy Queen, as well as a significant stake in computer behemoth Apple.
Berkshire Hathaway might soon join the ranks of Tesla ($1.07 trillion), Amazon ($1.66 trillion), Microsoft ($2.37 trillion), and Apple ($2.84 trillion) as the next trillion-dollar corporation.
Berkshire Hathaway has benefited from a larger market rotation into value and cyclical companies that benefit from a good economic recovery, with the Federal Reserve likely to more aggressively scale back on its pandemic-era stimulus and hike interest rates this year.
Berkshire Hathaway’s shares increased 30% last year, significantly surpassing the S&P 500 index’s 27% gain.
Investors have fled businesses with high valuations and uncertain profit outlooks as bond yields have risen, putting high-growth equities under pressure in recent weeks. According to recent data from Goldman Sachs, hedge funds are selling growth-oriented tech stocks at the quickest rate in over a decade. Rising bond yields have a particularly negative impact on technology and other high-growth companies, as they represent greater loan expenses, which can stifle cash flow growth. The Nasdaq Composite index, which is heavily weighted in technology, is down more than 3% in the first week of 2022, lagging the broader S&P 500.
On Thursday, the world’s eighth richest individual, Warren Buffett, who has committed to devote the majority of his fortune to charity, saw his net worth rise $1.4 billion.
