Berkshire Hathaway (#BerkshireHatha)
Amid the Fed’s major policy shifts and the geopolitical conflict between Russia and the West, Berkshire’s Class A shares yesterday closed at a new record high above half a million dollars for the first time, at $504,036 (+1.18% on Wednesday and +11.84% year on year), after failing to support its closing price above $500,000 on Tuesday. The company’s market capitalization now sits at #7 at $738.11 billion, according to the rankings on companiesmarketcap.com.
The new record high for Berkshire shares on Wednesday came after a sharp rally in Asian stock markets as the Chinese government signaled relaxation of control over the business sector, which also supported the economy by stabilizing the Chinese stock market, including Chinese companies registered overseas. As a result, the Hang Seng Index closed more than 9%, its highest in 14 years, led by Chinese tech stocks Alibaba which closed +36.76%, Baidu +39.2%, JD.Com +39.36% and Pinduoduo +56.06%.
Of its technology companies holdings, Apple represents up to 47.6% of the Berkshire portfolio. The benchmark index rose 2.9%, while the Nasdaq closed up 3.77% amid the Fed’s major interest rate hike, with Chairman Powell pledging that the Fed’s rate hike would not hurt its economic recovery despite signaling six more interest rate hikes to follow this year.
While the highly Berkshire’s Class A stocks are targeted by long-term investors, the average investor also has access to the more affordable Berkshire shares, i.e. Class B, which were created in 1996 and now trade around $336 per share (which sees support at $325 and resistance at 161.8 Fibo at $341.50). Overall It was a good year for the company, as the share price continues to set new records in a year of stock market downturn in the face of aggressive policy action from the central bank and geopolitical conflicts.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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