Friday, February 12, 2010

Berkshire Hathaway Joins the S&P 500 Today

Today, Berkshire Hathaway (BRKa) will be added to the S&P 500 as a company now worth over $ 180 billion.*

One of the five most valuable companies in the US.

In 1970, Berkshire Hathaway was earning ~$ 5 million/year. Roughly 40 years later the company earns over $ 9 billion/year and has more than $ 140 billion in investments (common stocks, bonds, and cash equivalents).

A total transformation.

That's investing. Turning a fragile business producing less than $ 5 million in earnings/year into the modern Berkshire Hathaway through smart allocation of capital over time.


Long BRKb

* A market value that is arguably lower than its intrinsic value at this time.
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