<div id="readability-page-1"><p>As of this writing, there are five U.S.-listed stocks in the trillion-dollar club, and <strong>Berkshire Hathaway</strong> <span>(BRK.A<span> -0.21%</span>)</span><span> (BRK.B<span> 0.03%</span>)</span> isn't one of them -- not yet anyway. The Warren Buffett-led conglomerate has a market cap of $926 billion as of Aug. 8, making it the sixth-largest publicly traded company.</p> <p>At its all-time high reached in June, Berkshire <em>was</em> in the elusive trillion-dollar club, with a market cap of about $1.06 trillion. But the share price has since pulled back a bit, mainly on macroeconomic worries.</p>  <p>With that in mind, can Berkshire surpass a trillion-dollar market cap again within the next year or so? Here are some potential catalysts -- both positive and negative -- that could determine its future trajectory.</p> <h2>Reasons Berkshire could reach $1 trillion in 2025 (or sooner)</h2> <p>Berkshire Hathaway's operation has three main parts: its operating businesses, stock portfolio, and cash. So, let's take these one at a time.</p> <ul> <li>Berkshire's stock portfolio is the most straightforward potential catalyst. It currently has a market value of $304 billion (33% of Berkshire's total market cap), and strong stock performance could potentially add tens of billions of dollars to Berkshire's valuation.</li> <li>Berkshire's $277 billion in cash and short-term investments is more of a wildcard. It currently generates about $14 billion in annual interest income for the company, but if Buffett and his team find a smart way to put a lot of it to work (an attractive acquisition opportunity, for example), it could help drive the stock higher.</li> <li>The operating businesses have been performing well, with operating earnings climbing 15% year over year in the second quarter. If the company can produce similar growth as we head into 2025, it could be a big catalyst for the stock.</li> </ul> <h2>Potential headwinds to keep in mind</h2> <p>On the other hand, there are several potential catalysts that could cause the stock to stay under the trillion-dollar threshold or even move lower.</p> <p>The obvious example is if a recession hits. While most of Berkshire's operating businesses are fairly recession-proof (people still pay their electric bills and auto insurance in bad economies), not all of them are. A recession could adversely affect many of the holdings in Berkshire's stock portfolio.</p> <p>Falling interest rates are also worth mentioning, as they can be a mixed bag. While lower rates would likely be a positive catalyst for many of Berkshire's investments, it's also worth noting that Berkshire has more than $230 <em>billion</em> in short-term Treasury securities, which are paying Berkshire an annualized yield of about 5%. If rates fall by two percentage points by the end of 2025, which is the consensus estimate right now, it could cost Berkshire several billion dollars in annual interest income.</p> <p>There are plenty of others. But the point is that there is plenty that could go wrong.</p> <h2>The bottom line</h2> <p>Nobody has a crystal ball that can tell us what Berkshire will do, but mathematically, it is quite likely that the stock will achieve a trillion-dollar market cap within the next year or so. For one thing, doing so would require a roughly 8% gain in Berkshire's share price, which is well below the company's long-term average and even below the long-term average return of the S&amp;P 500. In this sense, it would be somewhat disappointing if Berkshire <em>only</em> reached a $1 trillion market cap by the end of 2025.</p> <p>On the other hand, as we've seen, plenty of factors outside Berkshire's control, such as the possibility of a recession, could stand in its way. But with that in mind, I'd say that there's a greater than 50/50 probability that Berkshire will rejoin the trillion-dollar club before the end of 2025.</p>  </div>

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<p>Berkshire Hathaway's potential to reach a trillion-dollar market cap by 2025 is analyzed based on various factors. Positive catalysts include strong stock performance and growth in operating earnings. However, potential headwinds such as a recession or falling interest rates could hinder its progress. While it is likely that Berkshire will achieve a trillion-dollar market cap, external factors could impact its trajectory.</p>

- Berkshire Hathaway, with a market cap of $926 billion, is not among the five U.S.-listed trillion-dollar stocks currently. Despite previously being in the trillion-dollar club, its market cap has slightly decreased due to macroeconomic concerns.
- Potential catalysts for Berkshire to surpass a trillion-dollar market cap include strong stock performance, strategic use of its $277 billion cash reserves, and continued growth in operating earnings. However, factors like a recession or falling interest rates could hinder its progress.
- While there's a likelihood of Berkshire reaching a trillion-dollar market cap again by 2025, external factors beyond its control, such as economic downturns, may impact this projection.

Will Berkshire Hathaway Reach a Trillion-Dollar Market Cap in 2025?