Experience still counts! Berkshire Hathaway stock price hits a new high, surpassing $500,000 for the first time

As mentioned earlier by Wall Street News, do you remember the Berkshire Hathaway under Buffett's ownership?$Berkshire Hathaway-A (BRK.A.US)$Is it possible that Berkshire Hathaway will be the next company to approach a trillion-dollar valuation?

On Wednesday, March 16, Eastern Time, Berkshire Hathaway's Class A shares reached an important milestone today as the stock price broke through $500,000, setting a record high close.

Berkshire Hathaway's Class A shares rose 1.3% on Wednesday, closing at $504,400 per share, marking the first time the stock closed above $500,000, and achieving its fourth consecutive day of gains. The stock price of the Omaha-based company has risen 10.95% this year, significantly outperforming the broader market.

In addition, Berkshire Hathaway's Class B shares closed at $336.11 per share on Wednesday, with a gain of up to 12% since the beginning of the year.

Cathy Seifert, a Berkshire Hathaway analyst at CFRA Research, stated:

I believe the rotation into value stocks, combined with Berkshire Hathaway’s exposure in the energy and utilities sectors... along with investors’ enthusiasm for the company’s aggressive share repurchases, has driven the stock’s performance.

The rise in share price pushed Berkshire Hathaway’s market capitalization above $730 billion, surpassing Meta Platforms$Meta Platforms (FB.US)$, making it the only non-tech company among the top 10 most valuable listed companies in the US.

Berkshire's Class A shares are its originally issued stock, and over time, their price soared rapidly, eventually becoming one of the most expensive single stocks on Wall Street. Buffett has stated that he will never split the Class A stock because he believes the high share price will maintain and attract more quality-oriented long-term investors.

Nevertheless, to meet the demand from smaller investors for a more affordable option, Berkshire issued convertible Class B shares in 1996 at one-thirtieth the price of the original Class A shares. This allowed investors to directly purchase the company's stock rather than going through unit trusts or mutual funds.

Berkshire's latest earnings report shows a staggering net profit of nearly $90 billion and an operating profit of almost $30 billion for the 2021 fiscal year. Such impressive results were credited by Buffett to Berkshire’s 'Big Four'—insurance operations, BNSF railway business, BHE energy operations, and Apple. Berkshire’s Q4 earnings jumped 45% compared to a year ago as its invested businesses continued to recover from the pandemic.

Buffett’s portfolio of stocks has also yielded rich returns, ranging from Apple to major banks and Japanese trading companies. The massive bet placed by this 91-year-old investment legend on Apple, which accounts for 40% of Berkshire's equity portfolio, has earned over $120 billion on paper.

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