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Warren Buffett, one of the world’s wealthiest individuals, makes his money and distributes his risk through Berkshire Hathaway, a holding company. The firm invests in a wide range of businesses. The most important are primary and reinsurance insurance operations, a freight rail transportation company, and a collection of utility and energy-producing and distribution companies.
GEICO, National Indemnity, and reinsurance behemoth General Re are among the company’s key insurance divisions. Marmon Group, McLane Company, MidAmerican Energy, and Shaw Industries are among the company’s other major assets.
Berkshire Hathaway Inc. became the first non-tech U.S. company to reach a market value of over $1 trillion on 28 August 2024.
Learn more about Berkshire Hathaway, its founders, growth, business model, funding, acquisitions, and revenue model from this article.
Berkshire Hathaway – Company Highlights
| Startup Name | Berkshire Hathaway |
|---|---|
| Formerly | Valley Falls Company (1839–1929) and Berkshire Fine Spinning Associates (1929–1955) |
| Headquarters | Kiewit Plaza, Omaha, Nebraska, U.S. |
| Industry | Conglomerate |
| Founders | Oliver Chace |
| Founded | 1839 |
| Areas Served | Global |
| Current CEO | Warren E. Buffett (Chairman & CEO) |
| Website | www.berkshirehathaway.com |
About Berkshire Hathaway
Berkshire Hathaway – Name, Logo, and Tagline
Berkshire Hathaway – Founders and Team
Berkshire Hathaway – Startup Story
Berkshire Hathaway – Mission and Vision Statement
Berkshire Hathaway – Employees
Berkshire Hathaway – Business Model and Revenue Model
Berkshire Hathaway – Funding, and Investors
Berkshire Hathaway – Investments
Berkshire Hathaway – Acquisitions
Berkshire Hathaway – Growth
Berkshire Hathaway – Online & Social Media Presence
Berkshire Hathaway – Competitors
Berkshire Hathaway – Challenges Faced
Berkshire Hathaway – Future Plans
About Berkshire Hathaway
Berkshire Hathaway Inc. is an American holding corporation with a growing number of subsidiaries involved in a variety of businesses. Berkshire Hathaway began in textiles and has since expanded into insurance, retailing, manufacturing, publishing, and finance. The company is led by Warren Buffett and his partner Charles Munger.
They have become known for their renowned investment portfolio, which has consistently outperformed the S&P 500 and other benchmark indexes. Berkshire Hathaway Inc. and its subsidiaries are involved in a variety of businesses, the most important of which is property, liability, and auto insurance, which they provide both directly (via GEICO) and through reinsurance (General Reinsurance Corporation).
Furniture stores Nebraska Furniture Mart, R.C. Willey Home Furnishings, Star Furniture, and Jordon’s Furniture; fine jewelry stores Borsheim’s, Helzberg Diamond Shops, and Ben Bridge Jeweler; and footwear stores H.H. Brown, Dexter, and Justin Brands are among the company’s noninsurance businesses.
Other Berkshire enterprises include publishing, manufacturing, and interior design supplies. Berkshire Hathaway frequently purchases substantial shares of other publicly listed firms through its insurance subsidiaries. Warren Buffett, the company’s chairman, is known for his ability to choose stocks with hidden appeal and long-term potential.
Shubham Kumar
Berkshire Hathaway – Name, Logo, and Tagline
Warren Buffett’s investing business, Berkshire Hathaway, is mostly owned and controlled by him. It was named after a textile factory that opened in 1839, was purchased by Warren Buffett in 1964, and shuttered in 1985.
The term Berkshire Hathaway appears in dark blue on the Berkshire Hathaway logo. The vintage typeface and neutral hues provide a feeling of trustworthiness and common sense.
Berkshire Hathaway – Founders and Team
Berkshire Hathaway was founded by Oliver Chace in 1839.
Oliver Chace
Oliver Chace was a merchant in the United States throughout the 18th and 19th centuries. In the early nineteenth century, he founded various New England textile manufacturing enterprises, notably the Valley Falls Company, which was the forerunner of Berkshire Hathaway, which is now one of the world’s largest and most valuable companies.
When last reported in 2023, Berkshire Hathaway boasted of an employee strength of 396,500 employees.
Berkshire Hathaway – Startup Story
Berkshire Hathaway began as two different Massachusetts cotton factories in the 19th century: Berkshire Fine Spinning Associates and Hathaway Manufacturing. Berkshire Hathaway was formed in 1955 when the two corporations amalgamated. Warren Buffett and his investment group bought the faltering corporation in 1965 and took full control. Under his leadership and guidance, Berkshire Hathaway grew to become one of the world’s largest holding firms.
Berkshire Hathaway was formally transformed into a conglomerate by Buffett’s purchase of National Indemnity, the first of many insurance purchases for the business while separating itself from the textile sector by disposing of those assets. Three other insurance firms, as well as those in the banking, apparel, entertainment, food and beverage, utilities, furniture, home products, media, and materials and construction industries, were added to the company’s holdings.
Some of the firm’s very well-known subsidiaries include:
- GEICO
- Dairy Queen
- Fruit of the Loom
- Benjamin Moore
- Duracell2
- Pilot Travel Centers4
Berkshire Hathaway – Mission and Vision Statement
Berkshire Hathaway’s vision statement says, “To be the provider of choice in our communities for comprehensive real estate and financial solutions.”
Berkshire Hathaway – Employees
- Amanda Smith – Chief Sustainability Officer
- Antonio Cism – Chief Security Officer
- Helen Paulla – Chairman
- Michael Jones – Vice President and Chief Financial Officer
- Thom Lachman – Chief Executive Officer (Duracell)
- Carol Stefanik – Vice President
- Cloud Xu – EVP of Investment Protocol
Berkshire Hathaway – Business Model and Revenue Model
- Berkshire Hathaway is a conglomerate that owns companies in the insurance, rail transportation, energy generation, distribution, manufacturing, and retail industries.
- Insurance is the major source of revenue but manufacturing generates most earnings before taxes.
Insurance
Berkshire Hathaway’s underwriting operations include:
- GEICO is a private passenger vehicle insurance company
- Berkshire Hathaway Primary Group specializes in property and liability insurance for business clients, whereas
- Berkshire Hathaway Reinsurance specializes in excess-of-loss, quota-share, and facultative reinsurance (also includes investment income)
BNSF Railway
Berkshire Hathaway’s freight rail transportation division manages one of North America’s major networks. BNSF Railway transports consumer, industrial, and agricultural goods as well as coal.
Berkshire Hathaway Energy
Berkshire Hathaway Energy is a worldwide energy corporation that generates, transmits, stores distributes and supplies energy through its subsidiaries.
Berkshire Hathaway Manufacturing
Industrial products, construction products, and consumer items are the three types of manufacturing firms in Berkshire.
McLane Company
McLane is a wholesale distributor that supplies convenience shops, discount retailers, wholesale clubs, pharmacies, and other companies. Grocery distribution, food service distribution, and beverage distribution are the three divisions.
Service, and Retailing
Grocery and food service distribution, professional aviation training, fractional aircraft ownership, and electronic component distribution are among the service firms.
Gains and Losses from Investments and Derivatives
Berkshire Hathaway also holds a sizable equities and derivatives portfolio. Apple Inc. (AAPL), Bank of America Corp. (BAC), and Coca-Cola Co. are among the company’s top equity holdings.
Berkshire Hathaway – Funding, and Investors
Berkshire Hathaway has secured $1.3 billion in 3 rounds of fundraising. Their latest funding was raised on 14 April 2023, from a post-IPO debt round.
| Announced Date | Transaction Name | Number of Investors | Money Raised | Lead Investors |
|---|---|---|---|---|
| April 14, 2023 | Post-IPO Debt | – | $1.2 billion | – |
| September 27, 2022 | Post-IPO Equity | 1 | $68 million | Gregory E. Abel |
| August 15, 2019 | Post-IPO Equity | 1 | $3.5 million | Pershing Square Capital Management |
Berkshire Hathaway – Investments
Berkshire Hathaway has invested in 24 companies to date. The most recent investment was when Berkshire Hathway poured $6.7 billion in the May 15, 2024’s Post-Ipo Equity round of Chubb. Here’s a look into the recent investments of the company:
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| May 15, 2024 | Chubb | Post-IPO Equity | $6.7 billion |
| August 14, 2023 | Lennar Corporation | Post-IPO Equity | $17.2 million |
| May 15, 2023 | Capital One | Post-IPO Equity | $954 million |
| September 30, 2022 | Taiwan Semiconductor Manufacturing Company | Post-IPO Equity | $4.1 billion |
| September 29, 2022 | Occidental Petroleum | Post-IPO Equity | $352 million |
| April 19, 2022 | Snowflake | Post-IPO Equity | $621.5 million |
| April 6, 2022 | HP | Post-IPO Equity | $4.2 billion |
| March 5, 2022 | Occidental Petroleum | Post-IPO Equity | $5.1B |
| February 16, 2022 | Nubank | Post-IPO Equity | $1B |
| Jun 8, 2021 | Nubank | Series G | $750M |
| May 17, 2021 | Aon | Post-IPO-Equity | $942.6M |
| Jul 28, 2020 | Bank of America | Post-IPO-Equity | $400M |
| Jul 23, 2020 | Bank of America | Post-IPO-Equity | $800M |
| Feb 18, 2020 | Kroger | Post-IPO-Equity | $550M |
| Nov 17, 2019 | Restoration Hardware | Post-IPO-Equity | $200M |
| Aug 27, 2018 | One97 | Funding Round | $300M |
| Feb 14, 2018 | Teva Pharmaceutical Industries | Post-IPO-Equity | $358M |
| Oct 3, 2017 | Pilot Flying J | Funding Round | – |
| Jun 26, 2017 | STORE Capital | Post-IPO-Equity | $377M |
Berkshire Hathaway – Acquisitions
Berkshire Hathaway has acquired 53 businesses. Some of the top acquisitions of Berkshire Hathaway are listed below.
| Acquiree Name | About Acquiree | Date | Amount |
|---|---|---|---|
| Alleghany Corporation | Alleghany Corporation is an American investment holding company. | March 21, 2022 | $11.6 billion |
| HomeServices of America | HomeServices is a residential real estate brokerage firm. | Jan 18, 2017 | – |
| Medical Liability Mutual Insurance Co | Medical Liability Mutual Insurance Co is medical professional liability insurance. | Jul 18, 2016 | – |
| Precision Castparts | Precision Castparts is a metal manufacturing company that specializes in proving aerostructures and airfoils. | Aug 10, 2015 | $37.2B |
| Detlev Louis Motorradvertriebs | Detlev Louis Motorradvertriebs GmbH, a motorcycle apparel and accessories retailer in Germany. | Feb 20, 2015 | $450M |
| Charter Brokerage | Charter Brokerage is a leading global trade services company providing complete customs, import, export, drawback, and related services | Dec 12, 2014 | – |
| Duracell | Duracell is the market leader in the professional channel. Our products provide innovative solutions in many facets for businesses | Nov 13, 2014 | $4.7B |
| Van Tuyl Group | Van Tuyl Group, Inc. provides management consulting services to the largest group of privately held automotive dealerships. | Oct 2, 2014 | – |
| WPLG Local 10 | WPLG Local 10 is a channel providing news, weather reports, entertainment, and sports news. | Jul 2, 2014 | – |
| Oriental Trading Company | Oriental Trading Company is committed to outstanding customer service offering easy ordering, speedy delivery, and no-hassle return policies. | Nov 2012 | – |
| Omaha World Herald | Breaking news, weather, analysis, and information from the Omaha World-Herald. | Dec 2011 | – |
Berkshire Hathaway – Growth
- Berkshire Hathaway reached a $1 trillion market capitalization on 28th August 2024.
- Berkshire Hathaway reported $364.48 billion in revenue for 2023, a 20.68 percent increase from 2022.
- Berkshire Hathaway’s revenue for 2022 was $302.02 billion, a 9.35 percent increase from 2021.
- Berkshire Hathaway’s revenue for the year ended September 30, 2021, was $268.677 billion, up 9 percent from the previous year.
- Berkshire Hathaway’s yearly revenue in 2020 was $245.51 billion, down 3.58 percent from the previous year.
- Berkshire Hathaway’s yearly revenue in 2019 was $254.616 billion, up 2.74 percent over the previous year.
- Berkshire Hathaway’s yearly revenue in 2018 was $247.837 billion, up 3.29 percent from 2017.
Berkshire Hathaway – Online & Social Media Presence
Once while talking about the importance of the Internet business, the team got deeply into the discussion about the significance of the social media industry. After the discussion, one thing the team realized was that in order to promote business it was important to be active in social media. Educating and making aware of the agenda to the clients was the main work of the company then. Soon, Buffet joined all the social media platforms to increase and promote his empire as well as the business. His strategy was to perform professionally because everything he posted was quite integrated with the brand name. Today, he is a successful man!
Berkshire Hathaway – Competitors
Some of the major Berkshire Hathaway’s competitors are:
- BlackRock
- Allstate
- The Carlyle Group
- Howard Hanna Real Estate Services
- Allegheny Technologies
Sushree Sangeeta Behera
Berkshire Hathaway – Challenges Faced
With massive government stimulus and ultra-low interest rates threatening to drive inflation higher, Berkshire may be too huge to invest extensively in industries that profit from higher consumer prices. Several Berkshire shareholders voiced dissatisfaction with Buffett’s failure to buy more stock at the start of the outbreak, a wasted opportunity that gave the S&P 500’s roughly 90% gain from last year’s low.
Berkshire’s capacity to create cash is further hampered by historically low interest rates, which the Federal Reserve has promised to keep near zero for years.
According to Buffett, Berkshire currently makes approximately $20 million per year on its more than $100 billion in Treasury bills, compared to around $1.5 billion before the epidemic.
Berkshire Hathaway – Future Plans
Berkshire Hathaway intends to maintain its focus on core businesses and uphold its long-term investment strategy. The operational business of the conglomerate is a patchwork of businesses focusing on the traditional backbone of the economy, such as railways, batteries, insurance, home furnishings, and retail. Berkshire Hathaway has lost out on the rapid growth observed in the Amazon of the globe over the years due to its old economy focus. However, the “Oracle of Omaha” has shown his willingness to diversify away from Berkshire’s traditional economy core to adapt to the new reality.
Berkshire’s exposure to technology stocks has increased to 45 percent of its portfolio as a result of its big holding in Apple. Its Apple stake, which it originally purchased in 2016, has grown to nearly $120 billion, making it the company’s largest stock position by far. Except for IBM, Berkshire’s top equities holdings ten years ago had relatively little tech exposure.
One of the most pressing concerns about Berkshire Hathaway’s future in recent years has been who would succeed Buffett as CEO. The answer has finally come from the Oracle of Omaha. Greg Abel, who manages the noninsurance companies will be the next CEO of Berkshire Hathway.
FAQs
Does Berkshire Hathaway own Apple?
Berkshire holds about 908 million Apple shares, which are valued at $151 billion.
What are the companies that Berkshire Hathaway owns?
The major companies owned by Berkshire Hathaway are GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, FlightSafety International, Shaw Industries, Pampered Chef, Forest River, and NetJets.
Who owns most of Berkshire Hathaway?
The Vanguard Group owns most shares of Berkshire Hathaway.
Who founded Berkshire Hathaway?
Berkshire Hathaway was founded by Oliver Chace.
When was Berkshire Hathway founded?
Berkshire Hathaway was founded in 1839.
What sectors does Berkshire Hathaway own firms in?
Berkshire Hathaway is a conglomerate that owns companies in the insurance, rail transportation, energy generation, distribution, manufacturing, and retail industries.
Which companies does Berkshire Hathaway compete with?
BlackRock, Allstate, The Carlyle Group, Howard Hanna Real Estate Services, and Allegheny Technologies are among Berkshire Hathaway’s competitors.
What does Berkshire Hathaway do?
Berkshire Hathaway Inc. is an American holding corporation with a growing number of subsidiaries involved in a variety of businesses. Berkshire Hathaway began in textiles and has since expanded into insurance, retailing, manufacturing, publishing, and finance.
