Warren Buffett's Timeless Strategies Catapulted Berkshire Hathaway To A Trillion Dollar Valuation As He Celebrates His 94th Birthday

• Warren Buffett celebrated his 94th birthday, and Berkshire Hathaway became the first non-tech company to reach a $1 trillion market capitalization.
• Berkshire Hathaway boasts a diverse portfolio worth over $300 billion.
• Berkshire Hathaway has risen 33% this year.

Warren Buffett recently turned 94, marking a significant milestone alongside his company, Berkshire Hathaway Inc Class B (NYSE: BRK-B). Under Buffett's leadership, the company became the first non-tech firm to reach a market capitalization of $1 trillion, with Class A shares surpassing $700,000 each for the first time.

These achievements highlight a legacy of smart investment strategies and disciplined financial management.

Berkshire Hathaway's journey from a struggling textile business to a major conglomerate showcases Buffett's investment skills.

The transformation started in the mid-20th century, evolving into a giant with a diverse portfolio of over $300 billion and about $277 billion in cash reserves.

The company's focus on compounding reflects Buffett's philosophy of a long-term, consistent investment approach.

Buffett's influence goes beyond Berkshire, inspiring many investors with his strategic moves in challenging environments.

His notable investments include Coca-Cola in the late 1980s, Goldman Sachs during the 2008 financial crisis, and more recently, technology giant Apple, though he recently sold half of those shares.

The performance of Berkshire Hathaway's stock demonstrates Buffett's lasting strategy. Since 1965, it has achieved an annualized return of 19.8%, significantly outperforming the S&P 500's 10.2% over the same period.

This year, Class B shares have impressively increased by 33%, easily breaking past major resistance levels and showing the bullish behavior expected from Buffett-managed investments.

However, investing in Berkshire requires patience, as shown by periods of consolidation like the recent one from February to July, when the stock moved between $395 and $430.

These periods of sideways movement are typical of Berkshire's path, indicating that while the stock rises over time, it also requires investor patience during slower phases.

As Berkshire's shares reach new highs, closing August up nearly 9%, the stock nears a psychological level of around $500.

Investor sentiment will be key at this point. If seen as overvalued, the stock might pull back. Conversely, recognition of its true value could lead to further gains.

After the closing bell on Friday, August 30, the stock closed at $475.92, trading up by 1.61%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.