Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
This week, Berkshire Hathaway (NYSE: BRK-A) achieved a historic milestone as its Class A shares closed above $600,000 for the first time.
The surge in share price brings Warren Buffett's iconic conglomerate closer to the coveted $1 trillion market valuation, a feat not yet achieved by any U.S. company outside the technology sector.
Currently positioned as the seventh-largest company in the U.S. with a market capitalization of approximately $880 billion, Berkshire Hathaway is now only $120 billion shy of reaching the trillion-dollar mark.
This development sets the stage for an intriguing race against Eli Lilly (NYSE: LLY), which trails with a valuation of $749 billion.
Since Buffett took the helm of Berkshire Hathaway in 1965, the company's stock has seen an astronomical rise of 3,215,489%, from about $19 per share to $610,962, as reported by Business Insider.
Also Read: This Is How Much Warren Buffett's Company Missed Out On By Dumping Costco Stock In 2020
This growth trajectory underscores Buffett's strategic vision and reluctance to split the company's Class A shares, aiming instead to attract long-term, buy-and-hold investors.
In 1996, Berkshire Hathaway introduced Class B shares to provide a more accessible investment option without compromising the investment quality sought by Buffett.
Despite a stock split in 2010, the Class A shares have continued to climb, reaching new heights and solidifying Berkshire Hathaway's position as a powerhouse in the global financial landscape. The conglomerate's journey to this milestone has been marked by significant acquisitions, including a nearly 30% stake in Occidental Petroleum (NYSE: OXY) and the purchase of insurance giant Alleghany for $11.6 billion.
Now Read: How Warren Buffett Poured $3B Into This Company During 2008 Financial Crisis And Doubled His Money
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.