A lot of wind

The fact that Warren Buffet’s holding, Berkshire Hathaway is the first non-tech company to be worth 1 trillion dollars has blown up lots of dust in the economic media today. The media find it quite astonishing for a non-tech company to accomplish this. But they kind of forget one big little detail about BH. It is a holding! And it contains a lot of technology stocks, like Meta, like Alphabet, like Nvidia…

So, actually it is very normal for the company to ride the wave of the big tech and Artificial Intelligence boom. As those companies thrive, so does BH and Buffet.

12 % above the benchmark

The S&P 500 has risen 18 percent this year, but Berkshire Hathaway has roughly a year to date return of 30 percent this year. So, 30 percent is a lot in 8 months. Mostly because of Nvidia, Meta and the insurance holdings of BH.

And, what we surely cannot forget is the advantage of BH its size. Because of the shear gigantic holdings of Berkshire Hathaway they are a market maker, and the market follows what they do. So, they get bigger returns because of that!

The size of the top companies in the world is kind of worrying, as they take up most of the market capitalisation of the entire market. It drains money from the smaller capitalisations…

Sincerely,

Pele23