So what gives? The deeper we delve into Berkshire’s strange anomaly, the more remarkable it seems and the more valuable the explanations become. The company is literally in a class of its own. It’s not a tech company, but its market cap beats all other non-tech companies by such a large margin that it doesn’t seem like one of them. Its runner-up in the group, Walmart, would have to command a 41% higher valuation just to match Berkshire’s market cap.

Another way to consider the magnitude of Berkshire’s achievement: So far in this technology-driven year, Berkshire’s stock has outperformed shares of Apple, Microsoft, and Alphabet. It has beaten the tech-heavy Nasdaq as well as the S&P, Dow, and Russell 2000. It’s hard to remember that CEO Warren Buffett told his shareholders last February, “Absolutely, we have No Potential for eye-popping performance.”

But then performance can be measured in many ways, and market capitalization is not Buffett’s favorite way to evaluate a company. Market cap measures market expectations, not financial results, and as Buffett often notes, Mr. Market’s mood changes. Buffett focuses on net worth as calculated by generally accepted accounting principles (GAAP). The concept is simple: add a company’s assets and then subtract its liabilities. What is left is the net worth. Apple’s net worth is $57 billion. Nvidia has $66 billion. Berkshire’s is $663 billion. Few other tech giants have a higher net worth than Apple and Nvidia, but none approach half of Berkshire’s. As Buffett told investors in February, “Berkshire now has—far –The largest GAAP net worth recorded by anyone American Business.”

Students of Berkshire might object that the company is more of a tech business than it is, since it owns a lot of Apple stock. But the argument does not hold. Berkshire owns several insurance companies (GEICO is the most famous) and invests consumer premiums in large stock portfolios — and Apple is its largest holding. But Berkshire has been offloading its Apple stake for about a year, shedding about 70 percent of its holdings so far. That is, Berkshire’s stock is rising because the company is getting out of tech, dumping its Apple stake and reaping huge dividends.

Which brings us to the decades-old secret of Berkshire’s stellar performance, highlighted by the stock market events of the past year. This, of course, is no secret. This is Buffett, a fiercely independent, scorchingly intelligent CEO. He often seems out of step with the world, as when he sells Apple stock in a rising market. Other business bromides he dislikes:

· Everyone knows that diverse parties are a terrible idea. Decades of intensive research has shown that they underperform. But in 2015, Buffett told his shareholders, “Berkshire is now a sprawling conglomerate, constantly looking to expand further…. If the conglomerate is used correctly, it’s a long-term capital asset.” An ideal structure for maximizing growth. The phrase “used judiciously” is a simple way of saying “I use as I use.”

· CEOs don’t underestimate their company’s stock. But over the years Buffett has told shareholders when he thinks Berkshire’s shares are overvalued, and he warns them of potential trouble ahead, as he did again this year. Berkshire is always looking for companies to buy, but it has gotten so big, he said, that “there are only a handful of companies left in this country that can truly move the needle on Berkshire.” are,” and for various reasons they are not interested in it. In buying them. “There are basically no candidates outside the US. Meaningful Options…” That’s why he said there won’t be “eye-popping performance.” Yet shareholders haven’t rushed for the exits. Quite the opposite. They trust him to find a way. .

· Companies promote the products they sell. Berkshire often does this, but not always. It sells directors and officers insurance, which indemnifies board members against personal liability for their actions. But not in Berkshire. “We don’t provide. [board members] Directors and officers liability insurance, which is offered at almost every other large public company,” Buffett said in his 2011 letter. “If they mess with your money, they’ll lose theirs. “

It may seem surprising that Buffett has somehow entered the jamboree of technology royalty, but it shouldn’t. He has been so fearlessly unconventional for so many years that little surprises us. If it were otherwise, Berkshire stock would not have risen 4,384,748% under his 60-year tenure.

Buffett is never surprised. It’s just his latest brainchild: A 94-year-old CEO joins the tech bros and in some ways surpasses them.

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