Last week, Warren Buffett’s company, Berkshire Hathaway, rose above $1 trillion in value for the first time. It was an incredible achievement for a company that does not actually make a product. Berkshire Hathaway merely accumulates investment values in the assets under its ownership. Most of us cannot fathom $1 trillion. In an age full of discussion about the US national debt being over $35 trillion, gross national product above $28 trillion, and budget deficit spending nearing $2 trillion, talk in the sum of trillions does not fit into the scope of our imaginations. It is pretend money with little connection to real life.
The idea of a trillion-dollar company may also be difficult to imagine because it is a modern convention. Before the 21st century, only national governments commanded such financial value and productivity level. The first trillion-dollar company was from China in 2007. Since then, companies like Apple, Nvidia, Microsoft, Amazon, and Alphabet (Google) have joined the trillion-dollar value club.
THIS COMPLETE ARTICLE IS AVAILABLE TO OUR NEWSLETTER SUBSCRIBERS. SUBSCRIBE HERE.