What Happened: Buffett’s net worth rose to $100.4 billion on Wednesday as the Class A shares of Berkshire hit a record high. It was for the first time ever that the 90-year-old Buffett’s net worth crossed the $100 billion threshold.
Buffett now joins five other billionaires in the $100 billion club. They include the world’s richest person Amazon Inc. (NASDAQ: AMZN) CEO Jeff Bezos, Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk, Microsoft Corp. (NASDAQ: MSFT) co-founder Bill Gates and Facebook Inc. (NASDAQ: FB) CEO Mark Zuckerberg.
Known as the “Oracle of Omaha”, Buffett added $1.9 billion to his net worth on Wednesday. Berkshire’s Class A shares have gained 15% year-to-date, far outpacing the S&P 500 Index’s gain of 3.8%.
The stock’s gains have been aided by Buffett spending record amounts on buying back the conglomerate’s own stock over the past year. Berkshire spent .7 billion on share buybacks last year.
In his annual letter to shareholders in February this year, Buffett hinted that more stock buybacks are to come.
Why It Matters: Buffett’s entry into the elite $100 billion club comes even as the billionaire is known to be a generous donor. He is the co-founder of the “Giving Pledge,” which encourages billionaire philanthropy.
Price Action: Berkshire Hathaway Class A shares closed 1.9% higher on Wednesday at $398,840. The company’s Class B shares also closed 1.9% higher at $263.99.