Berkshire Hathaway (BRK.B) stock experienced a significant 24-hour plunge of 5% on Sunday, as investors appear to be reassessing the company's valuation following its strong year-to-date performance. The decline comes after the stock had surged 17% since the beginning of the year, outperforming the broader market by a wide margin.

The selloff may be attributed to concerns that Berkshire's stock has run up too far, too fast. Despite the recent gains, analysis suggests that the company's valuation remains reasonable when considering its diverse portfolio of businesses and substantial cash reserves. Berkshire's market cap of $1.15 trillion places it as the sixth-most valuable U.S. company, behind tech giants like Apple and Microsoft.

Investors are likely taking a closer look at Berkshire's three main components: its $287.59 billion equity portfolio, $334.2 billion in cash and short-term investments, and its controlled businesses valued at $528.2 billion. The company's shift towards emphasizing its controlled businesses and maintaining a large cash position may be influencing market sentiment. As Berkshire continues to evolve under Warren Buffett's leadership, the market appears to be digesting these changes and adjusting expectations accordingly.