Warren Buffett, known as the "Oracle of Omaha," celebrates his 94th birthday today with a historic triumph as his Berkshire Hathaway investment empire reached a market capitalization of more than $1 trillion this week. This achievement is all the more extraordinary because Berkshire Hathaway is the first non-technology company in the US to surpass this significant milestone. It joins an elite group of companies that includes tech giants such as Apple, Nvidia, Microsoft, Alphabet, Amazon and Meta.

The Buffett Way: From textile company to investment giant

Warren Buffett took control of Berkshire Hathaway in the 1960s when the firm was still a struggling textile company. With exceptional investment talent and long-term vision, Buffett transformed Berkshire into a conglomerate encompassing a wide range of industries, from insurance to railroads to energy and retail. This growth under his leadership is not only the result of strategic investments, but also an emphasis on values such as financial discipline and long-term stability.

The financial strength of Berkshire Hathaway

Berkshire Hathaway

BRK-B

$459.71 $3.11 +0.68%

Capital Structure

Market Cap

984.0B

Enterpr. Val.

1.1T

Valuation

P/E

14.5

P/S

2.7

Open $458.08

Day range $454.88 - $459.84

52 week range $330.58 - $484.82

Berkshire Hathaway is known for its vast capital base. At the end of the second quarter of 2024, the company had $277 billion in assets, of which $234.6 billion was invested in short-term U.S. Treasury bonds. This move, given the current economic environment characterized by inflation and rising interest rates, provides the company with stable returns.

Despite Buffett's decision to sell significant stakes in some companies such as Apple and Bank of America over the past few monthsthe move is seen as a sign of his long-term strategy and caution in an uncertain economic environment. This shows his ability to anticipate and react to market changes without getting carried away by short-term trends.

Success in numbers

Berkshire Hathaway shares are up nearly 30% in 2024, well above the market average represented by the S&P 500 Index. This performance reflects not only the strength of the company, but also investors' confidence in Buffett's ability to keep Berkshire on the path to continued growth. Experts, such as Brian Meredith of UBS, believe the company's value can continue to grow and set new records. His prediction suggests a possible rise in stock value to as high as $759,000 per share ($BRK-A+0.1%), which would represent another significant step for Berkshire Hathaway.

Berkshire's future

Warren Buffett, who has already announced his successor in the form of Greg Abel, vice president of non-insurance operations, is gradually preparing to hand over the reins. Abel, who is a respected member of the team, will play a key role in deciding the company's future investments and strategy. Although Buffett himself is prepared to gradually hand over his assets to charity, his influence on Berkshire Hathaway and the global investment community will continue to be evident.

Buffett's philanthropic commitments are as significant as his business successes. He has already donated over $5 billion worth of stock to several charities, including the Bill and Melinda Gates Foundation. The move is part of his long-term vision to gradually give away almost all of his wealth to help people who are not as fortunate as he is.

Conclusion

Berkshire Hathaway, under Warren Buffett's leadership, has exceeded all expectations and reached a market capitalization of $1 trillion, a testament to its financial strength, strategic vision and investor confidence. This achievement not only celebrates Buffett's birthday, but also confirms the long-term relevance and strength of his investment philosophy, which has become a model for investors around the world. By joining the "trillion-dollar club", Berkshire Hathaway has shown that even in today's market-dominated era of technology companies, a traditional conglomerate can still be on top.

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