The market value of Berkshire Hathaway, Warren Buffett's investment company, is now over $700 billion. That puts it ever closer to the $1 trillion mark already achieved by corporations like Tesla , Amazon , Microsoft and Apple . The conglomerate has more than 60 companies in its portfolio, such as Geico, Duracell and Dairy Queen.
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Buffett, who owns the company, is worth $114 billion, according to Forbes estimates. He is the eighth richest person in the world and his net worth increased by $1.4 billion last Thursday (6th), as the company's shares rose more than 1%. The billionaire promised to give most of his fortune to charity.
The appreciation is a result of investors moving towards safer bets rather than high – growth bonds . In the first week of 2022, the organization's Class B shares rose more than 4%. In 2021, the company's shares rose 30% and surpassed the 27% gain of the benchmark S&P 500 index.
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With the Federal Reserve set to more aggressively reduce its pandemic-era stimulus and raise interest rates this year, Berkshire Hathaway has benefited from a market trend to shift to cyclical stocks. , who benefit from a successful economic recovery.
With the Fed's move and investor behavior, high-growth stocks have come under pressure. Hedge funds have been selling tech securities at the fastest pace in more than a decade. These securities are affected by rising yields, as this represents higher debt costs, which can impede cash flow growth.
The high-tech Nasdaq Composite index dropped more than 3% at the start of the first week of 2022. As a result, it underperformed the broader S&P 500.
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