(BFM Bourse) – Berkshire Hathaway, Warren Buffett’s renowned conglomerate, recently became the first non-tech American company to exceed the significant $1 trillion market capitalization milestone at the end of August. According to projections from Bestbrokers.com, several other companies are expected to follow suit in the coming months.
At the end of August, the global stock market witnessed a shift in its hierarchy. Berkshire Hathaway, a company led by the legendary investor Warren Buffett, crossed the $1 trillion market capitalization mark, representing the total value of all its outstanding shares. This achievement not only highlights the company’s strength but also symbolizes a key milestone for non-tech firms in the financial world.
For Buffett, who celebrated his 94th birthday on August 30, this achievement was a fitting birthday present. His company has now joined the exclusive group of businesses that have surpassed the $1 trillion valuation mark, further cementing its position as a major force in the stock market.
“Breaking Records Sooner Than Expected”
Berkshire Hathaway’s entry into the “$1 trillion” club is a rare feat for a non-tech American company. Currently, this elite group is dominated by American tech giants such as Apple, Microsoft, and Google, with Saudi Aramco being the only exception from the oil sector. For Berkshire Hathaway to breach this barrier is particularly significant because it highlights the growing strength of diverse industries outside of tech.
While tech companies often lead the charge in reaching such massive valuations, Berkshire Hathaway’s success underscores the importance of companies with diverse investment portfolios. In fact, by the end of August, Berkshire Hathaway’s Class B shares had surged by 30% since the start of the year, driven by strong performance across its wide range of investments.
Interestingly, this milestone was achieved earlier than financial experts anticipated. Analysts at Bestbrokers.com had originally projected that Berkshire Hathaway would hit the $1 trillion mark by January 2025. However, strong market performance allowed it to surpass this expectation well ahead of schedule.
“Investors may have turned to Berkshire Hathaway to hedge against potential downturns in the tech sector, or they may be looking for exposure to artificial intelligence through the company’s stake in Apple,” said Greggory Warren, a strategist at Morningstar.
Although Berkshire Hathaway’s market capitalization has since dipped below the $1 trillion threshold, currently sitting at $984.29 billion, it remains close to reclaiming that level. Experts believe it could soon surpass the mark again, potentially locking in its position permanently.
“Who’s Next to Reach the $1 Trillion Milestone?”
With Berkshire Hathaway leading the charge, which company will be next to reach the $1 trillion mark? According to Bestbrokers.com, Eli Lilly, a leading pharmaceutical company, is projected to hit this milestone on January 15, 2025.
This forecast is based on the assumption that Eli Lilly’s stock will continue to grow at an average annual rate of 48.99%. As of September 3, 2024, the company’s market capitalization stood at $864.43 billion, making it one of the strongest contenders to join the exclusive club.
Bestbrokers.com arrived at these conclusions after analyzing the 50 largest global market capitalizations as of September 3, 2024, using data from companiesmarketcap.com. Their experts calculated the growth rate of each company’s market capitalization between 2022 and September 2024, then applied the average annual growth rate to the latest figures to predict future milestones.