Berkshire Hathaway’s Class A shares surged to a record high on Monday, rising 4% to $747,765.75, while its smaller “baby” share class gained 4.2%. The company’s fourth-quarter earnings report revealed a 27% increase in operating earnings compared to the previous year, reaching $47.4 billion, and a staggering 71% year-over-year gain.
The strong performance added $40 billion to Berkshire’s market capitalization, pushing it above Tesla as the seventh-most valuable public American company. With this gain, Warren Buffett’s net worth grew by $6 billion, solidifying his position as the sixth-wealthiest person in the world.
Analysts hail Berkshire as an attractive investment option amidst uncertain economic conditions. UBS analyst Brian Meredith praised the company’s resilience, saying it is “an attractive stock in an uncertain macro environment.” This sentiment is backed by Berkshire’s track record of outperforming the S&P 500, having beat the benchmark 16 times over the past 25 years.
The company’s massive cash reserve also played a role in its surge. At $334 billion, this represents about half of Berkshire’s public portfolio value. Despite some critics viewing this as an extraordinary amount, Buffett has assured shareholders that their money will be invested in equities rather than hoarded.
Source: https://www.forbes.com/sites/dereksaul/2025/02/24/berkshire-hathaway-stock-rises-4-to-new-record-making-warren-buffett-6-billion-richer