BERKSHIRE Hathaway’s share price hit a record high on Monday (Jul 15), reflecting investors’ confidence in Warren Buffett’s company, which is often regarded as a microcosm of the broader American economy.
The price of Berkshire’s Class A shares rose 1.5 per cent to US$649,000 in late morning trading, surpassing the US$647,039 price reached on Feb 26. Berkshire’s more widely held Class B shares are worth about 1/1,500th as much.
Monday’s gain boosted the market value of Omaha, Nebraska-based Berkshire to approximately US$930 billion, based on reported shares outstanding. The stock trades at more than 22 times projected full-year operating profit.
Some stock price services show Berkshire’s record high price was US$741,971 on Jun 3. That appears to reflect a glitch that also caused the price of the Class B shares to briefly fall more than 99 per cent.
Berkshire owns dozens of insurance, energy, manufacturing, retail and service businesses including Geico car insurance, the BNSF railroad, Berkshire Hathaway Energy and Dairy Queen ice cream.
It also owns a huge stock portfolio led by Apple, whose share price has risen by more than one-third since the end of March.
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Despite having donated more than half his Berkshire stock since 2006, the 93-year-old Buffett still owns about 14.5 per cent of the company, worth about US$135 billion. His overall fortune is about US$136 billion, Forbes magazine estimated on Monday.
Berkshire shares have performed approximately in line with the Standard & Poor’s 500 in 2024 after accounting for dividends.
Over the last decade they have also performed close to the index, but with less volatility. Berkshire does not pay a dividend. REUTERS
