Look at the list of the ten most valuable companies traded on U.S. stock exchanges, and a peculiar phenomenon emerges. Nine of the companies belong to the elite tech club led by Apple and Nvidia, while Berkshire Hathaway stands apart. It's like a typewriter company on a list of hot IPOs. Who let Berkshire get in? Its website seems stuck in the 1990s, and its CEO is 94 years old. Yet, its market cap sneaked above $1 trillion without notice and now sits just below Tesla and above Taiwan Semiconductor.

The Remarkable Berkshire Anomaly

The deeper we explore the Berkshire anomaly, the more remarkable it becomes. Berkshire isn't a tech company, yet its market cap beats all other non-tech companies by a vast margin. Walmart, its runner-up, would need to increase its value by 41% to match Berkshire's. In this tech-infatuated year, Berkshire's stock has outperformed Apple, Microsoft, and Alphabet. It has beaten the tech-heavy Nasdaq, the S&P, the Dow, and the Russell 2000. CEO Warren Buffett once said there was no possibility of eye-popping performance, but performance can be measured in many ways. 1: Market capitalization gauges market expectations, not financial results. As Buffett often notes, Mr. Market has mood swings. Instead, he focuses on net worth calculated by GAAP. Add up a company's assets and subtract its liabilities, and that's net worth. Apple's net worth is $57 billion, Nvidia's is $66 billion, and Berkshire's is $663 billion. Some tech giants have a higher net worth than Apple and Nvidia, but none reach half of Berkshire's. 2: Students of Berkshire might argue it's more of a tech business as it owns a lot of Apple stock. But Berkshire also owns insurance companies like GEICO and invests customers' premiums in large stock portfolios. It has been offloading its Apple shares for almost a year, with about 70% gone. Yet, Berkshire stock has been rising as it gets out of tech and collects gains.

The Decades-Old Secret of Berkshire's Performance

Buffett, the fiercely independent and intelligent CEO, is the key. He often seems out of step with the world, like selling Apple stock in a rising market. He disregards common business bromides. 1: He says diversified conglomerates are often considered a bad idea, but Berkshire is a sprawling conglomerate constantly growing. He uses the conglomerate form judiciously to maximize long-term capital growth. 2: CEOs usually don't scorn their company's stock, but Buffett warns shareholders when he thinks Berkshire shares are overpriced and of potential trouble. Berkshire is always looking to buy, but it's grown so big that only a few companies are meaningful options. Outside the U.S., there are essentially no candidates.

Berkshire's Unconventional Ways

Berkshire often does things differently. It sells directors and officers insurance but doesn't provide it to its own board members. It indemnifies board members against personal liability for their actions but not at Berkshire. 1: This shows Buffett's unwavering commitment to certain principles. He believes in holding true to what he believes is right, even if it goes against common practices. 2: Buffett's fearless unconventionality has allowed Berkshire to achieve remarkable results over the years. Under his 60 years of management, Berkshire stock has increased by 4,384,748%. He continues to amaze, joining the tech bros and outperforming them in some ways.