The stock of Berkshire Hathaway (BRK.A/BRK.B) is outperforming the broader U.S. market this year, hitting a record high even as the benchmark S&P 500 index falls into a correction.
Berkshire’s Class A stock rose 1.8% to $784,957 U.S. on March 17, while its Class B shares ended the day at $523.01 U.S. Both were all-time highs for the shares.
Berkshire’s more affordable Class B stock is now up 16% this year versus a 3% decline in the S&P 500 index.
However, the S&P 500 has fallen 10% from recent highs, the definition of a market correction.
Berkshire Hathaway’s stock has now outperformed the benchmark S&P 500 index over the past three, five, 10, and 20 years.
The record highs in Berkshire’s stock come as company co-founder and current chair Warren Buffett continues to demonstrate his investing acumen.
Buffett was a net seller of stocks for nine consecutive quarters during the U.S. bull markets of 2023 and 2024, raising Berkshire’s cash holdings to a record $334.20 billion U.S.
Analysts say the company’s massive cash pile and fortress balance sheet are reasons why investors are piling into Berkshire Hathaway’s stock during the current market turmoil.
Additionally, Berkshire Hathaway continues to hold off on repurchasing its own stock, continuing a buyback halt that began in May 2024.
In February of this year, Berkshire Hathaway reported strong fourth-quarter financial results that showed a 70% rise in after-tax operating profits.
Investors view Berkshire Hathaway’s stock as a safe haven amid the current market storm and are buying the stock as they rotate out of richly valued technology shares.
Berkshire’s Class B stock now has a market capitalization of $1.13 trillion U.S. and is the only non-technology firm to be valued at more than $1 trillion U.S.
The Class B stock of Berkshire Hathaway has risen 28% over the last 12 months.
