NAIROBI (CoinChapter.com)—Warren Buffett’s Berkshire Hathaway has reached a $1 trillion market cap. It is the first non-tech U.S. company to hit this milestone, which brings Berkshire Hathaway closer to Bitcoin’s market cap, currently at $1.2 trillion.
The launch of Bitcoin spot exchange-traded funds (ETFs) in the U.S. earlier this year helped boost Bitcoin’s value.
The veteran investor’s firm’s performance in 2024 has nearly matched Bitcoin’s gains. As of Aug. 29, Berkshire’s Class A shares traded at $696,502, reflecting a 29.67% increase for the year, close to BTC price’s 41% rise.
Berkshire Hathaway’s Strong Portfolio vs. Bitcoin
Berkshire Hathaway’s portfolio, which includes insurance companies like GEICO and brands like Dairy Queen, generated $22.8 billion in profit during the first half of 2024—a 26% increase from the previous year.
This, along with sales of assets like Apple, increased Berkshire Hathaway’s cash reserves to $276.9 billion by June.
Meanwhile, Bitcoin continues to lead the cryptocurrency market despite recent price action, with a market cap of $1.2 trillion and a price of $60,286.72.
The BTC USD pair‘s 132.21% year-over-year increase has far outpaced traditional markets. However, Berkshire’s strong year-to-date performance highlights the firm’s resilience in uncertain times.
Despite recent gains, Berkshire Hathaway has underperformed BTC prices over the long term. Since 2011, Berkshire’s stock has dropped 99.98% against BTC/USD.
Can Berkshire Overtake Bitcoin?
Berkshire Hathaway has positioned itself as a strong competitor in the investment world. Yet, the question of whether it can surpass Bitcoin’s market cap remains.
BTC’s rapid rise as a leading digital asset contrasts with Berkshire’s focus on traditional investments, which have provided consistent, long-term returns.
According to Nakamoto Portfolio analysis, if Buffett’s firm had allocated just 1% of its portfolio to Bitcoin, its five-year returns could have increased from 185% to 207%.
Warren Buffett is still devoted to conventional assets, though, as Berkshire has $234 billion in US Treasury bills—more than the $195 billion held by the Federal Reserve.
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