From Nasdaq: 2025-05-09 05:15:00

Berkshire Hathaway (NYSE: BRK.A) achieved a remarkable 5,502,284% gain between 1964 and 2024, outperforming the S&P 500 by a large margin. Warren Buffett’s leadership has transformed Berkshire into a $1.1 trillion market cap company, joining the elite $1 trillion club alongside tech giants like Microsoft, Apple, and Amazon. Buffett will step down as CEO at year-end, passing the torch to Greg Abel, causing some market volatility.

Buffett’s announcement of stepping down as CEO at Berkshire’s latest annual meeting led to a 5.1% drop in the stock price, raising concerns about Abel’s ability to lead effectively. However, Abel’s strategic vision and experience in managing Berkshire’s non-insurance operations position him well to continue the company’s growth trajectory. The transition to Abel’s leadership could pave the way for Berkshire to become a $2 trillion company in the future.

Berkshire’s history demonstrates the power of compounding, with the company reaching a $1 trillion market cap in 2024. By focusing on savvy investments in public securities and growing operating earnings from its controlled businesses, Berkshire has the potential to continue its upward trajectory. Investor optimism and market sentiment will also play a crucial role in driving Berkshire’s stock price higher, potentially reaching a $2 trillion market cap under Abel’s leadership.

Investing in Berkshire Hathaway offers long-term potential for growth and value creation. While Buffett’s exit as CEO may raise concerns, Abel’s leadership could steer Berkshire towards further success. With a track record of sound investments and a strong portfolio of controlled businesses, Berkshire remains an attractive option for investors seeking stable long-term returns. Consider the factors driving Berkshire’s growth and evaluate its potential for future success before making investment decisions.



Read more at Nasdaq: Warren Buffett Grew Berkshire Into a $1 Trillion Company. Can Greg Abel Take It to $2 Trillion?