Berkshire Hathaway stock reaches all-time high

Berkshire Hathaway's stock reached a record high on Monday, continuing its strong performance in 2025. The Class A shares rose 1.8% to $784,957, while Class B shares increased by 1.6% to $523.01. Year-to-date, Berkshire's Class A shares are up 15.3%, compared to a 3.2% drop in the S&P 500 index. Berkshire Hathaway has outperformed the S&P 500 over the past three, five, 10, and 20 years. Despite having no major news to explain this latest gain, investors appear encouraged by recent earnings reports showing a significant rise in profits. The company recently revealed an increase in its stakes in five Japanese trading companies. However, these changes were not substantial. Berkshire has not bought back any of its shares since early March, a trend that reflects its confidence in stock valuation. Berkshire’s strong performance can be attributed to its solid cash reserves of over $300 billion and its position as a major insurer. The company's market value now stands at $1.1 trillion. Buffett mentioned in a recent shareholder letter that Berkshire would likely increase its investment in the Japanese firms, which have been very profitable. Over the last five years, Berkshire's annualized returns have outpaced the S&P 500, and its trading multiples are currently at the high end of their range compared to the last decade. Investors are still optimistic about Berkshire under the leadership of Warren Buffett, who is 94 years old, and his potential successor, Greg Abel.