But it's fascinating Tesla is worth more than Berkshire.

That word "worth" is doing a lot of heavy lifting. Not specific to Tesla OR to Berkshire: we should always remember that any "market cap" is a pretty notional thing, not very well supported by reality.

All we really know is that some folks sold some shares to some other folks today, for whatever reasons, at some agreed price. If every existing shareholder agreed to be a seller at that same price, the market cap is what it would cost to buy the whole company today. It's good to remember how unrepresentative those few traders were, and how unreasonable the assumptions in that "if" can be.

Separately, of course, price and value are different, usually very much so. The current price doesn't really tell us what either firm is "worth", only what it currently costs to buy a piece.

Jim

Berkshire Hathaway FAQ

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