Is Berkshire Hathaway Stock a Good Buy? What To Know About Warren Buffett’s Holding Company
Written by
Adam Palasciano
Edited by
Cory Dudak
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In 1964, Warren Buffett took over as the majority owner of Berkshire Hathaway, which started as a small Massachusetts-based textile company. As of February 2024, his net worth hovers around $135 billion, according to Forbes.
At the time Buffett became majority owner, the company was trading at about $11.40 per share. Fast forward 60 years and the conglomerate is one of the world’s 10 largest publicly traded companies, with an impressive market cap of about $769 billion. Its Class A shares are currently trading at about $605,965 per share, while its Class B shares hover at a more reasonable $402 per share, as of February 27, 2024.
At age 93, Buffett still serves as CEO and Chairman of the company. Today, Berkshire Hathaway is a conglomerate that owns about 65 subsidiaries, some of which are fully or partly owned by the company. They include brands like Duracell, Dairy Queen, Jordan’s Furniture, Benjamin Moore, and GEICO Insurance — to name a few. Berkshire Hathaway takes profit from its insurance company holdings and invests them in a portfolio of about 50 different stocks valued at around $380 billion.
The company’s wide range of products and brands makes it one of the most consistent stocks on the market today.
Should You Invest in Berkshire Hathaway?
Since the company debuted its less expensive Class B shares in May 1996, the stock has averaged an annual return of about 10.4%. By comparison, the S&P 500 has had a total annualized return of about 9.5%.
Berkshire Hathaway’s diverse blend of products provides a hedge against market ups and downs when compared to other stocks that can be focused on one type of product or industry. If you’re looking for upside potential and a long-term investment, then Berkshire Hathaway should certainly be a consideration in your portfolio.
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