Berkshire Hathaway - Providing Comprehensive Real Estate and Financial Solutions

Sarika Anand Sarika Anand
Jan 12, 2022 10 min read
Berkshire Hathaway - Providing Comprehensive Real Estate and Financial Solutions

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Berkshire Hathaway.

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 of them are primary and reinsurance insurance operations, as well as 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.

Know more about Berkshire Hathaway by reading this article further.

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.

Charles Munger - Vice chairman of Berkshire Hathaway
Charles Munger - Vice-chairman of Berkshire Hathaway

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 jewellery 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.


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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.

Berkshire Hathaway Logo
Berkshire Hathaway Logo

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
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 2021, Berkshire Hathaway boasted of an employee strength of 372K 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, β€œTo 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
  • Mike Jones - 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, and distribution, manufacturing, and retailing industries.
  • Insurance is the major source of revenue but manufacturing generates most earnings before taxes.

Insurance

Berkshire Hathaway Insurance Logo
Berkshire Hathaway Insurance Logo

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

BNSF Railway Logo
BNSF Railway Logo

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 Logo
Berkshire Hathaway Energy Logo

Berkshire Hathaway Energy is a worldwide energy corporation that generates, transmits, stores distribute 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 Logo
McLane Logo

McLane is a wholesale distributor that supplies convenience shops, discount retailers, wholesale clubs, pharmacies, and other companies. Grocery distribution, foodservice distribution, and beverage distribution are the three divisions.

Service, and Retailing

Grocery and foodservice 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 $3.5 million in a single round of fundraising.

Date Round Amount Lead Investors
Aug 15, 2019 Post-IPO-Equity $3.5M Pershing Square Capital Management

Berkshire Hathaway - Investments

Berkshire Hathaway has invested in 15 companies to date. The most recent investment was when Berkshire Hathway poured $5.1 bn in the March 5, 2022's Post-Ipo Equity round of Occidental Petroleum. Here's a look into the 12 recent investments of the company:

Date Organization Name Round Amount
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
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 reported $70.583 billion in revenue for the quarter ended September 30, 2021, up 11.99 percent year over year.
  • Berkshire Hathaway's revenue for the year ended September 30, 2021, was $268.677 billion, up 9% 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 dollars, 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

Interesting Facts About Warren Buffett’s Berkshire Hathaway
Berkshire Hathaway is an American conglomerate owned by Warren Buffett. Lets know some hidden facts about Berkshire Hathaway of Warren Buffett.

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

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" is shown his willingness to diversify away from Berkshire's traditional economy core in order 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 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 retailing 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.

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