Berkshire Hathaway Surpasses USD 1 Trillion in Market Capitalization

Berkshire Hathaway Inc., the conglomerate led by renowned American businessman Warren Buffett, has made history by becoming the first U.S. non-tech company to surpass the USD 1 trillion mark in market capitalization.

This milestone was achieved as Berkshire Hathaway’s stock price surged by USD 3.96 on the New York Stock Exchange, closing at USD 464.59 per share on Wednesday.

Berkshire Hathaway Joining an Elite Group:

With this achievement, Berkshire Hathaway joins an exclusive group of six other companies that have crossed the USD 1 trillion threshold. This group primarily comprises tech giants, including Apple, Nvidia, Microsoft, Alphabet (the parent company of Google), Amazon, and Meta Platforms (the parent company of Facebook).

Berkshire Hathaway’s stocks have seen substantial growth this year, appreciating by more than 28% on the New York Stock Exchange. Despite this impressive performance, the broader U.S. stock markets faced a downturn on Wednesday, with the S&P 500 and the Nasdaq indices declining, largely due to investors’ profit-taking.

Global Market Repercussions:

The pressure in the U.S. markets had a ripple effect across Asian markets. On Thursday morning, major indices in Asia experienced selling pressure. Japan’s Nikkei index fell by 0.45%, Hong Kong’s Hang Seng index declined by 0.55%, and Taiwan’s Taiwan Weighted Index was the largest loser among the major Asian markets, dropping by 1.32%.

In India, the Nifty 50 index at the National Stock Exchange (NSE) touched a record lifetime high of 25,114.05 during trading on Wednesday. The IT sector contributed the most to this fresh lifetime high, driven by rate-cut hopes in the U.S. and subsequent buying from foreign portfolio investors. The sectoral index of IT led with a gain of 1.96%, with major IT companies such as LTIMindtree, Wipro, and Infosys being the biggest gainers.

Market Expert Insights on Berkshire Hathaway Milestone:

Ajay Bagga, a market and banking expert, noted the significance of this breakthrough. “The Nifty was in a tight range over the past few trading sessions despite the positive global cues.

Finally, it has broken through to fresh all-time highs, opening up possibilities for a strong-up move now. Sector-wise, domestic cyclical will lead the way while IT is coming back in favor of selective names,” he said.