Berkshire Hathaway reaches $1 trillion market cap, stock expected to continue performing well.

From Nasdaq: 2024-08-28 18:34:00

Berkshire Hathaway BRK.B has hit a trillion-dollar market cap, making it the first non-tech stock to reach this milestone. Led by Warren Buffett, Berkshire has a diverse portfolio with over 90 subsidiaries in various industries including insurance, railroads, utilities, and manufacturing.

Buffett acquired Berkshire Hathaway in 1965 and has since made significant acquisitions, including Precision Castparts for $37.2 billion. Other notable acquisitions include Geico Insurance, General Reinsurance, and Pacificorp, among others.

Berkshire’s growth trajectory is predicted to continue with total sales expected to rise 1% in fiscal 2024 and FY25 to over $368 billion. The company’s bottom line is projected to expand by 15% this year and by 1% in FY25 to $19.86 per share.

The stock performance of Berkshire Hathaway has been strong with a +30% increase year to date, surpassing most of its trillion-dollar market cap peers. Trading around $465, Berkshire’s stock has a forward earnings multiple of 23.5X and is expected to continue performing well.

Despite the recent surge in Berkshire Hathaway’s stock price, it currently holds a Zacks Rank #3 (Hold). Long-term investors may still find value in owning Berkshire shares, as indicated by Warren Buffett’s emphasis on the company’s potential for continued growth and returns.



Read more at Nasdaq: Berkshire Hathaway (BRK.B) Hits $1 Trillion Market Cap, Time to Buy its Stock?