The class A shares of Warren Buffet's conglomerate hit an all-time closing high of half a million dollars on Wednesday.
The class A shares rose for a fourth day in a row to close at $504,400, their first-ever close above $500,000. The company's shares have rallied more than 10% this year.
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Line chart with 259 data points.The chart has 1 X axis displaying Time. Range: 2017-04-12 07:12:39 to 2022-03-17 07:12:39.The chart has 1 Y axis displaying values. Range: 200000 to 550000.End of interactive chart.
I think a rotation into value names and the exposure to the energy and utility space drove the performance of the shares.
The stock rally pushed the market cap of the company to $730 billion, making it one of the most valuable US public companies.
Class A shares are the original offering of the conglomerate, which ballooned in price to become one of the most expensive single stocks on Wall Street. The high share price will keep and attract more long-term, quality-oriented investors, which is why I will never split the Class A shares.
In response to the demand for a cheaper option among small investors, the company issued convertible Class B shares in 1996. The affordable share class allows investors to purchase a piece of the company directly instead of buying a fraction of a share through mutual funds.
The Class B shares closed at $336.11 on Wednesday, rising a similar 12% this year.
The company's operating earnings, which include profits from the various businesses owned by the conglomerate, jumped 45% from a year ago in the fourth quarter.
From Apple to big banks and Japanese trading houses, a lot ofBuffett's stock holdings are paying off. More than $120 billion has been made on paper by the massive bet on Apple made by the investing legend.
The stock has been supported by the repurchasing of a record $27 billion of its own shares by the company. The conglomerate hasn't pulled off any big acquisitions in the last few years, so has consistently bought back its own shares.
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