U.S. stock exchanges are home to eight companies with a valuation of at least $1 trillion as of Oct. 21:
Apple: $3.59 trillion.
Nvidia: $3.52 trillion.
Microsoft: $3.11 trillion.
Alphabet: $2.02 trillion.
Amazon: $1.98 trillion.
Meta Platforms: $1.45 trillion.
Taiwan Semiconductor Manufacturing: $1.04 trillion.
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B): $1 trillion
Apple became the first trillion-dollar company in 2018. Taiwan Semiconductor Manufacturing is the newest member of this exclusive club, but Berkshire Hathaway -- which crossed the $1 trillion threshold in August -- is the newest American-based member.
Berkshire is an investment company that Warren Buffett has run since 1965. He and his team manage a portfolio of publicly traded stocks worth $317 billion, in addition to a $277 billion cash pile and numerous private, wholly owned subsidiaries.
Since 2018, Buffett has authorized the repurchase of $77.8 billion worth of Berkshire stock. That's twice as much as the conglomerate has invested in any single company in its entire history.
Buffett is a value investor, so he likes to buy great companies at an attractive price with the intention of holding on to them for the long term. Steady growth, robust profitability, and reliable management teams are just a few of the attributes he looks for when deciding to invest. He also favors companies with dividend payments and stock buyback plans, which help compound his returns over time.
Berkshire's holding in Coca-Cola (NYSE: KO) is a great example of Buffett's strategy in action. Berkshire spent $1.3 billion buying shares in the beverage giant between 1988 and 1994, and it has never sold a single one. That position is now worth a staggering $27.7 billion. Plus, Berkshire is on track to earn $776 million in dividends from its Coca-Cola stake in 2024 alone.
But that's just one of Berkshire's many success stories. Its other long-term investments include American Express, Moody's Corp, and Apple.
Apple is the largest holding in Berkshire's portfolio today. It spent approximately $38 billion acquiring shares in the iPhone maker between 2016 and 2023. Despite Berkshire selling a significant chunk of its stake this year (which I'll discuss further in a moment), the position is still worth $94.5 billion as of this writing. That accounts for 29.8% of Berkshire's $317 billion portfolio of publicly traded stocks.
Berkshire Hathaway was originally a textiles company, and it was on the brink of failure before Buffett stepped in to buy it in 1965. He was unable to save its legacy business, so he converted it into a holding company for his various investments.