Buffett's empire approaches trillion-dollar market cap

Buffett’s empire approaches trillion-dollar market cap | Insurance Business Canada

Insurance News

Buffett’s empire approaches trillion-dollar market cap

Recent earnings reports have the potential to advance the firm towards the significant marker

Insurance News

By
Kenneth Araullo

In Monday’s premarket trading, Berkshire Hathaway Inc’s stock witnessed an uptick of up to 5.5%, a rise that could potentially push the conglomerate’s market valuation closer to the US$1 trillion milestone if sustained throughout the trading day.

A report from Bloomberg noted that the surge followed the company’s announcement of its fourth-quarter operating earnings, which showed a significant increase to US$8.48 billion from US$6.63 billion in the corresponding period the previous year.

This growth was attributed to improved earnings from insurance underwriting and a rise in investment income, bolstered by higher interest rates and less severe weather conditions.

Additionally, Berkshire Hathaway reported a record increase in its cash reserves, reaching US$167.6 billion. This comes as the conglomerate faces challenges in identifying investment opportunities that are both appealing in value and have the potential to deliver exceptional performance.

In his annual letter to shareholders, Warren Buffett, the company’s CEO, expressed the difficulty in finding substantial deals that align with the firm’s criteria for outstanding returns. Worth noting is the company’s recent dump of Apple shares, which saw the conglomerate reduce its holding to 5.9% of the tech behemoth, valued at around US$176 billion.

Prior to this latest increase, Berkshire Hathaway’s shares had already experienced notable growth of approximately 17% in 2024, following a 15% gain in the previous year.

Last week, the company’s market value was reported at US$905 billion, edging closer to the coveted trillion-dollar market capitalization.

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