Good morning and welcome to the last month of 2024. As Adoption of AI accelerated this year, a technology group of stocks known as Magnificent seven was often the center of attention. But holding company Berkshire Hathaway is giving big tech a run for its money.
At the age of 94, Warren Buffett, chairman and CEO of Berkshire Hathaway, No. 5 in Fortune 500continues to keep the business world interested in what it buys or sells. Firms market capitalization it reached more than $1 trillion a few months ago, and it ranks just below Tesla and above Taiwan Semiconductor. However, Buffett’s company stands out in some of its holdings. It is owned by Geico Insurance and also owns the brands Duracell, Fruit of the Loom, Dairy Queen and BNSF railway which became household names more than half a century ago.
In the new Fortune articlemy colleague Jeff Colvin writes that nine of the 10 most valuable companies traded on US stock exchanges are technology firms, led by an apple (No. 1) and Nvidia (No. 2), together with Microsoft, Alphabetand much more. And then there is Berkshire Hathaway. The firm’s market capitalization also exceeds that of all other non-technology companies. Walmart would have to get 41% more valuable to match Berkshire’s market cap, he explains.
“So far this tech-obsessed year, Berkshire shares have outperformed Apple, Microsoft and Alphabet,” Colvin writes. “It beat technology Nasdaq as well as the S&P Dowand the Russell 2000. It’s hard to remember CEO Warren Buffett telling his shareholders last February: “Overall, we have no the possibility of stunning performance”.
However, market capitalization is not Buffett’s favorite way to value a company. “Market capitalization determines market expectations, not measurable financial results, and as Buffett often points out, Mr. Market’s mood changes,” Colvin writes.
To learn about Buffett’s favorite financial metric, as well as the business bromides he despises, you can read Colvin’s full analysis here.
Buffett, who has certainly created an investment legacy, recently began reflecting on his life on November 25 letter to shareholders.
“Father time always wins,” writes Buffett. “But it can be fickle—indeed unjust and even cruel—sometimes terminating life at birth or soon after, and sometimes waiting a century or so before visiting. I’ve been very lucky so far, but he’ll get to me soon.”
Buffett revealed that he is distributing an additional $1 billion to his family’s endowment. This is in line with his long-standing promise to give away more than 99% its merits.
Cheryl Estrada
sheryl.estrada@fortune.com
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Leaderboard
Benoit Fouillon was appointed the company’s financial director Celonisa process mining and process analysis company since December 1st. Fouillon has more than three decades of experience in financial and executive management. He joins Celonis from Contentsquare, where he served as CFO. Prior to that, he was CFO of Firmenich, a fragrance and flavor company, where he was a client of Celonis. Prior to Firmenich, Fouillon held CFO positions at Criteo SA, SAP AG and Business Objects SA.
Michael Batstedt was appointed financial director in Allianz partnersinsurance and assistance firm. With more than 25 years at Allianz Group, Batstedt joins Allianz Partners from his most recent role at Allianz Italy, where he served as CFO for four years. Before that, he was the chief risk officer for five years. Butstedt has held numerous senior positions at Allianz Group, including Chief Risk Officer at Allianz Switzerland and Group Risk Officer at Allianz SE.
A big deal
Transaction activity in the US continues to recover after the fluctuations observed over the past three years, it reports Barometer of EY-Parthenon deals to the end of 2024. EY experts in macroeconomics predicts that the total volume of M&A transactions in the US in 2025 will grow by 10% on an annual basis. In terms of private equity, M&A experts forecast growth of 16% in 2025.
After slowing in the second half of 2024, the Deal Barometer estimates that corporate M&A volume (for deals over $100 million) will gradually increase, growing by 8% in 2025. after a likely 11% increase in 2024. With 830 deals per year – To date through September, the Deal Barometer predicts about 1,080 deals in 2024 and about 1,170 deals in 2025.
Going deeper
FortuneThe finance team put our heads together to come up with actions for the coming year, culminating in the report “5 investment trends for 2025—and 15 stocks to help you bet on them.”
We started by identifying five trends and then selected three companies that plan to ride each of these waves in 2025. In some cases, our selections reflect the continuous development of technology. Other trends, such as geopolitical risk, which has the greatest potential for disruption, and health and wellness reflect broader political and social shifts.
Overheard
“Travel has always been a very competitive business. Everyone is always trying to come up with more sources of income.”
—CEO of Booking Holdings Glen Vogel told Fortune in an interview. Vogel manages all of the travel company’s brands, including Priceline, Booking.com, Kayak, Agoda and OpenTable.
