In this roaring bull market, value investments seldom get much attention. That makes Berkshire Hathaway (BRK-B) trading at an over $1 trillion market capitalization special. The firm sold a large stake in its Apple (AAPL) position yet BRK-B stock still rose.
Berkshire is among the seven firms at a $1 trillion size. Apple, Nvidia NVDA), Meta (META), Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) are in that club. Berkshire is unique because it is not in the technology sector.
The fund may catch the market’s attention these days with its cash position. It holds $276.9 billion in cash equivalents, with mostly U.S. Treasury bills. Despite the Federal Reserve promising markets for several quarters to cut interest rates, Warren Buffett still holds more T-bills.
The firm is sitting out on Nasdaq (QQQ) and S&P 500’s (SPY) all-time highs. Berkshire will not overpay on stocks.
Berkshire’s insurance company, Geico, is a strong business. Investors may buy Prudential (PRU) or Chubb (CB) to get exposure in this sector.
Your Takeaway
Berkshire earned the recognition for its milestone. However, the firm is not buying back its stock. It holds record cash levels. Until the firm initiates new positions, wait for BRK-B stock to fall to better prices before starting a position.
