Warren Buffett's Berkshire Hathaway has reached a market cap of $1 trillion, closely mirroring the Bitcoin market.
Berkshire Hathaway Stock Rise
Berkshire Hathaway's stock, BRK.A, rose by 0.75% on August 28, pushing its valuation above the $1 trillion mark. The stock has rallied by over 29% in 2024, surpassing the S&P 500 index's 17% rise but trailing Bitcoin's 31% gains for the same period.
Diversified Portfolio and Financial Results
Berkshire Hathaway has achieved impressive financial results in 2024 through its diversified portfolio spanning insurance, energy, manufacturing, retail, and services. These segments delivered $22.8 billion in profit during the first half of the year, marking a 26% increase compared to last year. The portfolio's highlights include BNSF Railway, Geico car insurance, Berkshire Hathaway Energy, Dairy Queen, Brooks, and more. Additionally, the company has a substantial stake in Apple, despite selling half of its shares earlier this year. As of June 30, the company holds $276.9 billion in cash and equivalents, primarily in US Treasury bills.
Comparison with Bitcoin
Despite Warren Buffett's well-known aversion to Bitcoin, calling it 'rat poison,' his investment strategy has nearly matched Bitcoin's performance in 2024. Over the past decade, Berkshire Hathaway stock has significantly underperformed compared to Bitcoin. Analysis using the Nakamoto Portfolio simulator shows that incorporating even 1% Bitcoin into Berkshire's portfolio could have boosted returns from about 185% to 207% on a five-year timeframe. Increasing Bitcoin allocation to 5%–10% could have achieved returns of 130.97-279.64%.
In conclusion, despite their differing approaches, both Bitcoin holders and Berkshire Hathaway investors have managed to achieve significant results in 2024.
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