Shares of billionaire Warren Buffett’s investment conglomerate Berkshire Hathaway continued their New Year rally Thursday, taking the company’s market value to a new high of more than $700 billion — and putting it within reach of $1 trillion.
Berkshire Hathaway shares rose more than 1% Thursday, rising for the fourth consecutive day as investors continue to exit high-growth stocks into safer bets.
Berkshire Class B shares rose more than 4% in the first week of 2022 and are now near all-time highs, giving the company a market valuation of more than $700 billion.
The popular Oracle investment group in Omaha has a portfolio of more than 60 companies including Geico, Duracell and Dairy Queen. It also has a large stake in the tech giant Apple.
Berkshire may now be well on its way to becoming the next trillion-dollar company, joining companies like Tesla ($1.07 trillion), Amazon ($1.66 trillion), Microsoft ($2.37 trillion) and Apple ($2.84 trillion).
With the Fed set to cut sharper in pandemic-era stimulus and raise interest rates this year, Berkshire Hathaway has benefited amid a broader market turnover in value and cyclical stocks benefiting from a successful economic recovery.
Berkshire’s stock is up 30% last year, slightly outpacing the benchmark S&P 500’s 27% gain.
With bond yields soaring, investors dumped companies with high valuations and uncertain profitability expectations, putting high-growth stocks under pressure in recent weeks. Hedge funds are selling growth-oriented technology stocks at the fastest clip in more than a decade, according to recent data from Goldman Sachs. Technology stocks and other high-growth companies are particularly affected by higher bond yields, as that means higher debt costs that can hamper cash flow growth. The high-tech Nasdaq Composite is down more than 3% to begin the first week of 2022, underperforming the broader S&P 500.
The big number: 114 billion dollars
This is how much Buffett is worth, according to Forbes‘ Estimates. The eighth richest person in the world – who has pledged to donate most of his fortune to charity, saw his net worth rise by $1.4 billion on Thursday.
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