Warren Buffett's Berkshire Hathaway could be the next $1T stock
Berkshire Hathaway (BRK-A, BRK-B) is on track to be the next trillion-dollar company by market capitalization, according to Markets Reporter Paul La Monica, who joins Yahoo Finance to discuss Berkshire's rise.
La Monica says Apple (AAPL) is "by far the biggest stock" in Berkshire's portfolio, boosting the company's gains. However, he notes Berkshire is more than just Apple, it's a "giant industrial conglomerate" with ownership stakes across many sectors.
This diverse investment portfolio of stocks, insurance, and utilities has enabled Berkshire to build its $860 billion market valuation.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: The $1 trillion market cap club could soon be getting a new member, and it may not be one of the Magnificent Seven. That's according to our next guest, who has been following the progress of one iconic name that could soon be adding a few more zeros. Let's have market reporter Paul La Monica reveal who it is. Paul, who is it?
PAUL LA MONICA: Berkshire Hathaway. Yes, Warren Buffett, not exactly known as the most savvy tech Investor, despite a big stake in Apple, of course. But this is a company that now has a market valuation of about $860 billion, so not that far from a trillion.
JULIE HYMAN: Hey, Paul. It's Julie here. First of all, it is fantastic to see you. Secondly--
PAUL LA MONICA: Thank you.
JULIE HYMAN: Secondly, as we look at Berkshire's portfolio, right, we know Apple's a big part of it. But what sort of has powered the latest growth leg for Berkshire Hathaway? And what could then power the next leg?
PAUL LA MONICA: Yeah, it's very interesting, Julie. Apple, of course, is by far the biggest stock in the Berkshire portfolio. So that is helping to propel the gains of the investment side of the business. But remember, Berkshire Hathaway and Warren Buffett, and the late Charlie Munger were known for stock picking, but Berkshire Hathaway is also this giant industrial conglomerate. It owns Geico, owns the BNSF Railway, owns Dairy Queen, owns so many consumer and energy and insurance subsidiaries.
The insurance side of the business is doing really well, and that's one of the reasons why operating earnings were up about 20% for the first three quarters of 2023. We'll be getting those fourth quarter numbers at the end of the month, and also, when Berkshire Hathaway's Warren Buffett will release his annual shareholder letter that everyone will be scrutinizing to see what he says about the economy and the state of the markets.
