Berkshire Hathaway’s post-New Year rally owned by billionaire Warren Buffett has led the investment group to a new all-time high of more than $ 700 billion, and “in touch” with its $ 1 trillion mark. dollars.
Shares of Berkshire Hathaway added 1.8% on Friday, recording gains for the fifth consecutive session, as investors continue to turn from growth securities to safer stocks.
Berkshire Class B shares rose more than 4% in the first week of 2022 and are now moving on a record trajectory, boosting the Group’s value, which exceeded $ 700 billion.
The “Omaha Prophet” investment group has more than 60 companies in its portfolio, with names such as Geico, Duracell and Dairy Queen, while it holds a significant percentage of shares in the technological “giant” of Apple.
Berkshire is now heading to join the 1 Trillion Club, which includes Tesla ($ 1.07 trillion), Amazon ($ 1.66 trillion), Microsoft ($ 2.37 trillion). dollars) and Apple ($ 2.84 trillion).
The most aggressive stance that the US Federal Reserve is expected to adopt, reducing tapering and accelerating interest rate hikes in 2022, works in favor of Berkshire Hathaway, amid a wider market shift to circular stocks benefiting from the economic recovery.
In 2021, Berkshire shares rose 30%, surpassing the performance of the S&P 500, which rallied 27% year-on-year.
As government bond yields skyrocket, investors are abandoning companies with high valuations and uncertain profit prospects, putting high-growth stocks under pressure in recent weeks. According to recent data from Goldman Sachs, hedge funds are selling shares of growth-oriented technology companies at the fastest pace in a decade. Shares of tech and other high-growth companies are particularly affected by rising government bond yields, which means higher debt costs, which can halt rising cash flows. In the first week of 2022, the tech Nasdaq plunged 4.5%, while the S&P 500 slipped 1.9%.
Buffett now has a net worth of $ 1.4 billion, with the successful investor – committed to donating most of his fortune to charity – remaining the eighth richest man in the world, according to Forbes.
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Source: Forbes
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