Berkshire Hathaway is the American multinational holding company. Berkshire Hathaway’s headquarter is in Omaha, Nebraska, united states. Berkshire Hathaway owns a bunch of company such as GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, Flight Safety International, Pampered Chef, and also NetJets.
They do own 38.6% shares of Pilot Flying J, 26.7% shares of the Kraft Heinz Company, and significant minority shares in American Express (17.6%), Wells Fargo (shares 9.9%), Coca-Cola Company (shares 9.4%), Bank of America (6.8%), and Apple (5.22%). According to the report of 2016 that shows Berkshire has acquired equity in the major US airline carriers and is currently the largest stockholder in United Airlines, Delta Air Lines and a top three stakeholder in Southwest Airlines and American Airlines.
Berkshire Hathaway is also known for its control and leadership by Warren Buffet who is the chairman and the Chief Executive of it. Warren Buffet always chooses to invest in the publicly-traded company for the long-term. But recently he bought whole companies frequently.
Recent years it shows that Berkshire Hathaway owns multiple kinds of businesses such as confectionery, retail, railroads, manufacturers of vacuum cleaners, jewelry sales, newspaper publishing, manufacture and distribution of uniforms, home furnishings, encyclopedias, and several regional electric and gas utilities.
On Forbes Global 2000 list and formula show that Berkshire Hathaway is the third-largest public company in the world, the tenth-largest conglomerate by revenue and the largest financial services company by revenue in the world. Berkshire has the most expensive share price in history which is A class share and worth around $300,000 each. This happens because there has never been a stock split in its Class A shares.
Berkshire is also one of the respected companies in the world based on a survey of American money managers in 2007. Warren buffet gets $100000 per year as salary with no stock option which is the lowest salary of a big multinational company in the USA. Every year over 40000 people attend Berkshire’s annual shareholders’ meetings which take place at the CHI Health Center in Omaha, Nebraska. ‘Woodstock’ is the nickname for this meeting for capitalists which is Omaha’s largest annual event. This meeting starts pretty interestingly with a movie and the meeting lasts for about 6 to 7 hours and the capitalists also can ask questions to Buffett and Munger.
Governance members of the board of directors of Berkshire Hathaway are Warren Buffett (Chairman), Charlie Munger (Vice-Chairman), Ronald Olson, Charlotte Guyman, David Gottesman, Bill Gates, Steve Burke, Susan Decker, Walter Scott Jr., Sir Thomas S. Murphy, Howard Graham Buffett (Warren’s son), Meryl Witmer, Ajit Jain, and Greg Abel.
On the survey of the 2017 fiscal year, Berkshire Hathaway’s earnings were US$44.9 billion with total revenue of US$242.1 billion, an increase of 8.3% over the previous fiscal cycle. According to 2018 survey, Berkshire Hathaway is ranked third on the Fortune 500 rankings of the largest United States corporations by total revenue.
The net worth of warren buffet, CEO of Berkshire has decreased from $87.1 Billion USD to $79.7 Billion USD within one year.
Berkshire Hathaway also owns approximately 70 domestic and foreign-based insurance companies, which provide insurance and reinsurance service of property and casualty risks primarily in the United States. Such as Geico, Gen Re, NRG and, Berkshire Hathaway assurance. On the survey of 2003which shows that Pepsi paid Berkshire around $1 million to $10 million to insure against a contest Pepsi which had held a potential $1 billion prize.
Berkshire also has manufacturing, retailing and services such as clothing (Union Underwear Corp, Fruit of the Loom, Garran, Fechheimer Brothers and Russell Corporation, Justin Brands. Chippewa Boots, Justin Boots, Justin Original Workboots, H.H. Brown Shoe Group, Acme Boots, Brooks Sports Nocona Boots, and Tony Lama Boots), building products (Acme Building Brands, Shaw Industries, Clayton Homes).
They also invested in retail businesses such as Nebraska Furniture Mart, RC Willey Home Furnishings, Star Furniture Company, and Jordan’s Furniture, Inc. Berkshire also owns the Clayton Homes which is a maker of modular homes, intermodal piggyback trailers, storage trailers, chassis, and domestic containers.
Besides owning companies outright Berkshire also maintains a concentrated portfolio of equities and investments which has amazingly been managed by Warren Buffett. From 2010, Todd Combs and Ted Weschler also work with Buffett in managing investments. In the 2016 letter to all the shareholders, Warren disclosed that each of them can independently manage greater than $10 billion on behalf of Berkshire.