2022 is finally here, and I’m sure I’m not alone in hoping that we see a lot more change from the chaos that was 2021.
Some things, however, remain constant regardless of the year, and one of those things is the enduring success of Berkshire Hathaway (NYSE: BRK.B) and its illustrious CEO – Warren Buffett.
The road to $1 trillion?
Last week saw Berkshire hit all-time highs of over $700 billion. The stock has seen an impressive start to the year, buoyed by investor fears surrounding high growth stocks. People have been placing their money into safer options, and it doesn’t get much safer than Berkshire. The Omaha-based multinational has delivered an average annual return of about 20% for shareholders dating back as far as 1965.
With investor sentiment unlikely to change for the foreseeable future, Berkshire could be poised for a period of solid growth. Interest rates are set to rise this year, meaning that more and more people are likely to rotate out of growth stocks. This has many speculating as to whether Berkshire could soon join the trillion-dollar club along with companies such as Apple and Microsoft.
Even before this news, Berkshire would have been considered a fantastic opportunity for investors. Buffett’s otherworldly annual returns make the company hard to ignore, especially for anybody looking to invest long-term. Now, with growth-oriented stocks being sold off at an unprecedented rate, Berkshire becomes an even more attractive proposition for potential shareholders.
In over 56 years as CEO of Berkshire Hathaway, Warren Buffett has turned the company into one of the most successful businesses the world has ever seen. Right now, there’s no reason why this unparalleled success won’t continue. As with every success, the best time to invest was probably 50 years ago. But the next best time might well be right now.
Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.