Berkshire Hathaway Closing In on $1 Trillion Market Cap Milestone Despite Recession Risks

Berkshire Hathaway's market cap is approaching $900 billion and shares continue to hit all-time highs. The company looks undervalued compared to tech giants and could hit $1 trillion.

Berkshire generates over $5 billion in dividend income from its investments and billions more in interest from its $130 billion cash stockpile. This unique income stream helps drive profits.

Insurance is a major revenue driver but also introduces risk if claims spike from disasters, lawsuits, etc. This could hurt underwriting profitability.

Berkshire has $567 billion in equity, owns 72 operating companies, and holds stakes in 41 public companies. You get exposure to many assets when investing in Berkshire.

If rates stay elevated or go even higher, that benefits Berkshire's cash income but could trigger a recession that would hurt operating businesses. Fed policy is a key variable.