Berkshire Hathaway

Berkshire Hathaway Earned $251.440 Billion Revenue in 2019

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.

warren buffet-warren buffett

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. 

Berkshire Hathaway Companies
Berkshire Hathaway Companies

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. 

Berkshire Hathway Stock Holders Meeting
Berkshire Hathway Stock Holders Meeting

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 insurance group

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).

Berkshire Hathway Real Estate
Berkshire Hathway Real Estate

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. 

Amazon Stock Getting J Curve For Amazon Web Services and Prime Video

Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Web sites, including amazon.com and amazon.ca. In 1994, Jeff Bezos incorporated Amazon and In May 1997, the organization went public. Amazon serves its customers through its retail Web sites and focuses on selection, price, and convenience.

Amazon CEO Jeff Bezos
Amazon CEO Jeff Bezos

Amazon also offers other programs that let the sellers sell their products on its Web sites. Amazon also provides the service developer customers through Amazon Web Services, which provides access to technology infrastructure that the developers can use to enable a virtually various type of business.

Amazon Web Services
Amazon Web Services

Amazon remains a small player in global retail. They show a low single-digit percentage of the retail market, and there are much larger retailers in every country where Amazon operates. And that’s largely because nearly 90% of retail remains offline, in brick and physical stores.

For many years, amazon thinks about how they might serve customers in physical stores. With Amazon Go, they had a clear vision and getting rid of the worst thing about physical retail checkout lines. No one likes to wait in line. Rather than, they imagined a store where you could walk in, pick up what they wanted, and leave. Getting there was hard. Technically hard.

It required the efforts of hundreds of smart, dedicated computer scientists and engineers all around the world. They had to design and invent new computer vision and they had to do it in a way where the technology worked so well that it simply move away into the background, invisible.

Something strange and remarkable has happened over the last 20 years. Take a look at these numbers:

Amazon Growth Percentage Per Year (1999-2018)
Amazon Growth Percentage Per Year (1999-2018)

 

The percentages represent the share of physical gross merchandise sales; sold on Amazon by independent third-party sellers. Here mostly small- and medium-sized businesses – as opposed to Amazon retail’s own first-party sales.

Amazon Stock
Amazon Stock Market Statistics

Third-party sales have grown from 3% of the total to 58%. And also, the first-party business has grown dramatically over that period, from $1.6 billion in 1999 to $117 billion this past year. The compound annual growth rate for amazon’s first-party business in that time period is 25%. But at that same time, third-party sales have grown from $0.1 billion to $160 billion – a compound annual growth rate of 52%.

Amazon Affiliate Marketing Strategy
Amazon Affiliate Marketing Strategy

Amazon helped independent sellers compete against their first-party business by investing here and offering them the very best-selling tools they could imagine. There are many such tools, that help sellers manage inventory, process payments, create reports, track shipments, and sell across borders.

Amazon is inventing new things every year. But most of the great importance is fulfilled by Amazon and the Prime membership program. Together, these two programs significantly improved the customer experience of buying from independent sellers.

Product & services

Amazon.com has a number of products and services available, including:

  • Amazon Fresh
  • Amazon Prime
  • Amazon Web Services
  • Alexa
  • App store
  • Amazon Drive
  • Echo
  • Kindle
  • Fire tablets
  • Fire TV
  • Video
  • Kindle Store
  • Music
  • Music Unlimited
  • Amazon Digital Game Store
  • Amazon Studios
  • Amazon Wireless

Amazon owns over 40 subsidiaries, including Zappos, Shopbop, TeachStreet, Diapers.com, Kiva Systems (now Amazon Robotics), Audible, Goodreads, Twitch and IMDb.

Amazon Robotics Making Faster Delivery Possible
Amazon Robotics Making Faster Delivery Possible

Amazon first launched its distribution network in 1997 with two fulfillment centers in Seattle and New Castle, Delaware. Amazon has several types of distribution facilities consisting of cross-dock centers, fulfillment centers, sortation centers, delivery stations, prime now hubs, and Prime air hubs. Moreover, they have 75 fulfillment centers and 25 sortation centers with over 125,000 employees.

Amazon Distribution Network
Amazon Distribution Network too Strong

Since its founding, the company has attracted criticism and controversy for its actions, such as supplying law enforcement with facial recognition surveillance tools; forming cloud computing partnerships with the CIA; placing a low priority on warehouse conditions for workers; actively opposing unionization efforts; remotely deleting content purchased by Amazon Kindle users; taking public subsidies; leading customers away from bookshops; adversely impacting the environment;  seeking to patent its 1-Click technology; engaging in anti-competitive actions and price discrimination; and reclassifying LGBT books as adult content.

amazon kindle- all story starts here
amazon kindle- all story starts here

The company has also faced accusations of putting under pressure on suppliers to maintain and extend its profitability.

“Google is a vast ocean of knowledge, Face book is a vast ocean of relation, AMAZON is a vast ocean of getting things by touchpoint.” Sometimes sound to be true then there will be always unseen disadvantages.

Cathay Pacific CEO Rupert Hogg Resigned

Cathay Pacific CEO Rupert Hogg Resigned

International news agencies and various other media agencies in Hong Kong have confirmed that Rupert Hogg, the former Cathay Pacific CEO, has submitted his own name to the Chinese Aviation Authority, instead of a list of staff members who took part in the Hong Kong protests.

Cathay Pacific Aircraft

Rupert Hogg had joined Cathay Pacific as a CEO in May 2017. Before this designation, he was working with Cathay Pacific’s parent company – Swire for more than 30 years.

Cathay Pacific got caught in the political crisis when the Chinese authority demanded Cathay Pacific to suspend crew members, who were involved in illegal protests in Hong Kong. The protest was going on from operating flights into China’s airspace from 10th August, including flights bound for other destinations.

Cathay Pacific Staffs been banned in China who was involved in Hong Kong Protest
Cathay Pacific Staffs have been banned in China who was involved in Hong Kong Protest

According to Hong Kong Confederation of Trade Unions, 1200 Cathay Pacific cabin crew and pilots took part in a strike on Monday (5th August).

“Anyone may question the transparency of this possible reason, as there is a high degree of freedom of speech in Hong Kong. We may never possibly get absolute accuracy unless this information is officially revealed by Rupert Hogg or the Management Team from Cathay Pacific.” —– Sam Chui

Moreover, Wang Ting-yu, a parliament member in Taiwan, made a Facebook post on Sunday afternoon (18th August) to praise his act.

adnan imtiaz halim

Successful Entrepreneur: Adnan Imtiaz Halim CEO Sheba.xyz

Adnan Imtiaz Halim is one of the successful entrepreneurs, who is the CEO and Co-founder of Sheba.xyz. They launch Sheba.xyz in July 2016. This is one of the successful startups in Bangladesh.

entrepreneur Bangladesh

He graduated from AIUB. Then he works for Grammenphone, Nokia, Ericson, and Quebec. While working here he realizes that this is not his place, he wanted something own which also have to be a long run and benefited for the society too and something from he can earn money. Working for others made him felt that there will be no differences if he left.

He also gets job offers from Australia and Singapore but he always wanted to do something in Bangladesh. He also wanted to make a change in lifestyle for society. He wanted to do something which will give him the freedom and will add
positivity in society.

That’s where Sheba.xyz comes from, but this was not easy for him because to do a start-up one need fund, proper plan and the ability to take the risk. I’ll start with a story here, for the first thing he did, he went to his big brother for money and his brother said they a good idea but do they ready for taking the risk?

Sheba

Though Adnan Imtiaz was ready this makes him think again, because it’s not easy to
leave the job and start a business while you a have a family and this might make a huge difference in the lifestyle they are living. On that time the CEO of Quebec offers him to continue as the consultant but he will get the same salary as before and have to come for only just 2 days.

But he refused the offer because he didn’t want any backup plan so that the only option he left to success. Then he realizes that he has to make sure the business set perfectly in the market and rushing won’t lead them to success. They took enough time to think and they also change a lot in the business plan.

Then he did market analysis, sales study and 360-degree running organization study for 2 years. They also make the business plan in June 2015 but take 14 months to understand the market and the services they will provide, that’s why they launch Sheba.xyz in July 2016. Their vision was always futuristic.

Entrepreneur Adnan Imtiaz Halim Sheba xyz

Sheba.xyz has almost 450 resources. Service businesses are risky but this leads them to
opportunities. Adnan Imtiaz Halim always focuses on making the product perfect and not to rush.

Now Adnan Imtiaz Halim focuses on technology because they want to make the company a global company by 2022. Adnan Imtiaz Halim now maintains a ratio on an employee that there has to be 1 engineer in 8 employees. He is a risk-taker and a successful entrepreneur. In Bangladesh, it is not easy to run a service business and make it trustworthy and successful but Adnan Imtiaz Halim did it really well in a very short time.

financial statement analysis of startup -cash flow statement, balance sheet

Financial Statements Analysis for startup

According to statistics conducted by Harvard Business School, 90% of the startup do fail within the first five years. Among this 90% startup, 75% got bankrupted within the first two to three years. Harvard business school found that the most common reasons for being failed are inefficient financial knowledge, lack of financial analysis capability and inappropriate leadership.

Most of the founders of the startup cannot afford to have an individual CFO [Chief Financial Officer] or a professional financial statement analyzer. That is why they cannot prepare cash flow statements, balance sheets, and other financial statements. These statements are very important to monitor the cash flow inside the organization and the financial condition of the business.

How to do the Financial Analysis of a Startup

For example, Mr. X is the founder of a fashion store. He just started a fashion store and planning to scale it up on an international level.
Now Mr. X had invested $1000 to buy a showroom place. After that, he had invested $5000 to buy the products. But after some days he was frustrated because none of his products been sold. Also, he needed money to pay the expenses of the business like utilities, tax, etc. That is why he had sold all products on the loss. Let, he had sold all of the products on $3000 and paid his expenses which were $2000.

 

Cash Flow Statement

Cash from Buyers = $3000
Cash invested = $5000
——————————————–
Gross Profit = -$2000
Operational Expenses = $2000
——————————————-
Net Profit = -$4000

Balance Sheet