Warren Buffet's investment in this particular stock outweighs his commitment in Apple, amounting to billions of dollars.
Berkshire Hathaway, the iconic company led by legendary investor Warren Buffett, has recently crossed the $1 trillion market capitalisation threshold, making it the youngest US company to join this exclusive club of global giants.
Founded in 1839 as a textile factory, Berkshire Hathaway has come a long way since Warren Buffett took the reins in 1965. Initially a struggling textile firm, Buffett transformed it into a diversified holding company, owning businesses spanning insurance, railroad, utilities, and manufacturing.
Buffett's blueprint for success has been investing in companies with solid fundamentals, reliable earnings, and strong competitive moats. This approach has created compounding growth over decades, with Berkshire's book value per share increasing at an estimated compound annual growth rate (CAGR) of about 18.3% from 1965 to 2024.
The company's diversification and ownership of numerous operating businesses and sizable equity holdings have contributed to stable earnings and cash flow. In the past six years, Buffett has approved buybacks of Berkshire Hathaway shares worth around $77.8 billion, demonstrating his confidence in the company's future.
Warren Buffett's investment in Berkshire Hathaway in 1962 has proven to be a wise decision. An initial investment of $1,000 in 1965 would now be worth $42 million. This investment in Berkshire Hathaway shares is twice as much as Warren Buffett spent on Apple, his absolute favourite stock, which at one point made up over half of Berkshire Hathaway's portfolio.
Despite some recent challenges and changes in leadership, Berkshire's market recognition and valuation reflect investors’ recognition of its diversified earnings power and Buffett’s investing legacy. The company's entry into the trillion-dollar club was recently reported by the financial portal "Motley Fool".
While Berkshire’s returns have slowed relative to the 1980s and 1990s, it still remains a top-performing long-term investment compared with major indices over decades. Berkshire Hathaway's success can be attributed to Buffett's disciplined investment philosophy, skillful acquisition of high-quality businesses, and patient capital deployment resulting in durable growth and profitability.
Meanwhile, the CEO and majority shareholder of the German publisher Börsenmedien AG, Herr Bernd Förtsch, and CEO Herr Leon Müller, also have positions in Apple. The Best of Billionaires Index by BÖRSE ONLINE focuses on the top positions of billionaires like Warren Buffett, Bill Gates & Co.
Technology plays a significant role in Berkshire Hathaway's diversified business portfolio, as several of its subsidiaries, such as Berkshire Hathaway Energy, invest in renewable energy projects and smart grid technologies.
With its extensive resources, Berkshire Hathaway could potentially explore opportunities in the evolving world of technology investing, further contributing to its long-term success in the finance industry. Motley Fool recently reported on Berkshire Hathaway's entry into the trillion-dollar club, reflecting investors' recognition of its diverse earnings power and Warren Buffett's legendary investing legacy.
