On Monday, There was a record-high stock price set by Berkshire Hathaway. The price increased by 3.4% after Warren Buffet’s firm announced that its quarterly operational profit had surpassed $10 billion for the first time.
The hike in interest rates has boosted fixed income investment profits, which also include the cash stake that jumped to $147.4 billion, fewer accident claims, and stronger Auto insurance from Geico, said Berkshire in its second quarter earnings reports on Saturday.
It helped offset the BNSF railroad’s decreased profit as well as lower revenues from consumer goods companies like Forest River RVs and Duracell batteries as well as construction product companies such as Clayton Homes.
The Nebraska-based business of Buffett reported a quarterly net income of $35.9 billion, which reflected the unrealized gains on assets like Apple, whose stock price increased 17.6% during the quarter. At the end of June, Berkshire Hathaway owned $177.6 billion of Apple’s shares.
Berkshire got a market value of $799 billion, as on Monday the Berkshire Class A shares rose from $18,320 to $551,920. The previous high of $544,000 was set on March 28, 2022, and it was surpassed recently and reached around $555,800.
According to Forbes Magazine, Buffet surpassed Bill Gates, the Microsoft co-founder, on Monday, recording a net worth of $121.5 billion and becoming the world’s fifth richest person. In Berkshire’s stock, Buffet owns 15% of its shares.
Brian Meredith, UBS analyst for class A shares, has raised his 12-month price target to $621,591 from $608,000, calling the stock “an attractive play in an uncertain macro environment.”
Analyst Meyer Shields of Keefe, Bruyette & Woods, who rates Berkshire as “market perform,” increased his price target from $545,000 to $565,000 for the stock.
The Class A shares of Berkshire have never been divided. Normal trading prices for its Class B shares are around 1/1,500th as much.
As with the Standard & Poor’s 500, Berkshire’s shares rose by 18% in 2023. The shares no longer frequently exceed the index as Berkshire did when it was smaller, but they may still match or somewhat outperform it over extended periods with less volatility. Berkshire has been run since 1965 by Warren Buffett, who is 92 years old.
Additionally, his company owns namesake energy, various manufacturing and industrial companies, as well as consumer brands including Dairy Queen, Fruit of the Loom, and See’s Candies.
