Berkshire Hathaway Reaches $1 Trillion Market Cap... First Non-Tech Company to Achieve This

7 of 8 Companies with Market Cap Over $1 Trillion Are US Firms
Wall Street Raises Target Prices, Bright Outlooks Continue

The market capitalization of Berkshire Hathaway, led by 'the Oracle of Omaha' Warren Buffett, has surpassed $1 trillion. This is the first time in the company's history and the first record among U.S. companies excluding large technology stocks. Wall Street is praising this meaningful milestone set by Berkshire Hathaway, a representative of the 'old economy,' in the era of artificial intelligence (AI) dominance.

According to Bloomberg and others on the 28th (local time), Berkshire Hathaway's (hereafter Berkshire) stock price closed up 0.75% from the previous session on the New York Stock Exchange, reaching a market cap of $1.01 trillion, marking the first time it has crossed the $1 trillion threshold. This is the first time a non-technology company in the U.S. has reached a $1 trillion market cap. With this, the number of companies listed on the New York Stock Exchange with a market cap exceeding $1 trillion has increased to eight. Except for Saudi Aramco, seven are U.S. companies (Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, Berkshire).

[Image source=Reuters Yonhap News]

Cash Seifert, a CFRA Research analyst, said, "This proves Berkshire's solid financials and franchise value," adding, "It is an important milestone set by Berkshire, one of the few types of large corporations existing today." He gave high marks to Berkshire surpassing the $1 trillion market cap in an era dominated by tech giants in AI and semiconductors, despite not being a technology company.

Andrew Kligerman, a TD Cowen analyst, said, "Over the past decades, companies have tended to become more specialized, but Berkshire achieved this feat through its 'old economy' businesses, which many consider outdated, and its conglomerate model," adding, "We salute Chairman Buffett and his management team."

Buffett acquired control of Berkshire Hathaway, a struggling textile company in the 1960s, and transformed it into a vast empire encompassing insurance, railroads, retail, energy, and manufacturing. Known as the 'investment genius,' he is also recognized as a cash-rich billionaire who has amassed enormous wealth based on his investment acumen and market insight. Forbes reported that Buffett's net worth reached $146 billion on this day, ranking him as the world's sixth richest person.

Optimistic forecasts for Berkshire's stock price continue to emerge. Brian Meredith, a UBS analyst, raised revenue estimates for this year and next based on Berkshire's expanding investment income and increased acquisition performance of its insurance groups, including GEICO. He also raised the 12-month price target for Berkshire Class A shares to $759,000, about 9% higher than the closing price of $696,502 on the day.

In a memo written earlier this month, Meredith also stated, "We continue to believe Berkshire stock is an attractive investment in an uncertain macroeconomic environment." Since the beginning of this year, Berkshire's stock price has risen about 28%, significantly outperforming the S&P 500's 18% increase over the same period.

This content was produced with the assistance of AI translation services.