The shares of Berkshire Hathaway reached a new all-time high as the company took advantage of the ongoing economic recovery.
On Wednesday, Berkshire Hathaway class A shares reached a new all-time high after ending the day at $504,036. This is the first time the company’s stock price is hitting half a million dollars per share.
The stock went up by nearly 6,000 points, adding more than 1% to its value in the last 24 hours.
The new milestone comes as Warren Buffett’s multifaceted conglomerate enjoys massive success during the economic recovery. Since the start of the year, Berkshire Hathaway has added more than 11% to its value, making it one of the best-performing stocks in the country.
The rally comes at a time when the stock market is struggling. The NASDAQ and S&P 500 have been underperforming in recent weeks due to the struggles of some of the leading tech companies in the world.
Berkshire Hathaway’s 11% rally year-to-date means that the company has outperformed the broader market since the start of the year. Cathy Seifert, a Berkshire analyst at CFRA Research, said;
“I think a rotation into value names, coupled with Berkshire’s exposure to the energy and utility space … and investors’ enthusiasm for Berkshire’s aggressive share buybacks drove the shares’ performance.”
Following this new milestone, Berkshire Hathaway’s total market cap surpasses $740 billion for the first time. The company has now surpassed Meta Platforms (formerly known as Facebook) in terms of market value, making Berkshire Hathaway the only non-tech entity on the list of 10 most valuable United States companies.
Berkshire Hathaway is the most expensive stock on Wall Street, currently trading above $500k. Warren Buffet has consistently maintained that he doesn’t intend to split the shares because he believes the high share price will only attract and keep more long-term, quality-oriented investors.