Berkshire Hathaway Inc. (NYSE:BRK.A) had an impressive Monday as the company’s stock briefly topped the $300,000 mark before sliding back down a bit.
The stock’s recent surge could be at least partially related to the fact that the GOP tax plan looms on the horizon and such a large tax reform in the U.S. could reshape the face of certain major companies such as Warren Buffett’s hedge fund.
If such a plan received the green light from Congress, Berkshire Hathaway’s earnings report for the current quarter will be a profitable one. BRK.A shares gained 0.9% by late in the afternoon Monday, now trading at $298,980 per share.
At one point Monday, the stock gained as much as 1.3% to get up to $300,100 per share. It has been a wild ride for Berkshire Hathaway as the stock has gained almost 10% since November 16, which marked the first step towards passing the tax bill as House Republicans voted in favor of the plan that would reduce U.S. corporate taxes.
BRK.A shares are up about 22.55% year-to-date, which is larger than the 20% average gain marked by the S&P 500 Index. Since 2017 kicked off, the value of a Berkshire Hathaway share has increased by $55,049.
The company’s business is very closely attached to the fate of the U.S. economy. Buffett’s company’s deferred tax liability — which is the valuation of possible future taxes — is currently at $86.5 billion, but this figure may be reduced by $30 billion with the GOP tax plan.
