Berkshire Hathaway closes at a record above $500,000 a share as Buffett's conglomerate roars back

cnbc.com:

Berkshire Hathaway class A shares achieved a key milestone Wednesday, hitting an all-time closing high of half a million dollars as Warren Buffett's multifaceted conglomerate fires on all cylinders during the economic recovery.

The class A shares gained 1.3% Wednesday, rising for a fourth straight day to close at $504,400 — its first-ever close above the half-million dollar threshold. Shares of the Omaha-based company have rallied more than 11% this year, significantly outperforming the broader market.

«I think a rotation into value names, coupled with Berkshire's exposure to the energy and utility space… and investors' enthusiasm for Berkshire's aggressive share buybacks drove the shares' performance,» said Cathy Seifert, a Berkshire analyst at CFRA Research.

The rally in the stock pushed Berkshire's market cap above $730 billion, surpassing tech pioneer Meta Platforms in market value and becoming only non-tech companies on the list of 10 most valuable U.S. public companies.

Berkshire's Class A shares are the conglomerate's original offering, which rapidly ballooned over time in price to eventually become one of the most expensive single stocks on Wall Street. Buffett has said he will never split the Class A shares because he believes the high share price will keep and attract more long-term, quality-oriented investors.

Still, in response to demand for a cheaper option among small investors, Berkshire issued convertible Class B shares in 1996 for one thirtieth of Class A share price initially. The affordable share class allows investors to purchase a piece of the company directly instead of buying a fraction of a share through unit trusts or mutual funds.

Berkshire's Class B shares closed at $336.11 apiece on Wednesday,