Berkshire Hathaway is a multinational conglomerate holding company headquartered in Omaha, Nebraska, USA. It is most famously led by Warren Buffett, one of the most successful investors in history.
๐ข Overview
Founded: Originally as a textile manufacturing company in 1839; Buffett took control in the 1960s.
CEO: Warren Buffett
Chairman: Warren Buffett
Vice Chairman: Charlie Munger (until his death in 2023)
Headquarters: Omaha, Nebraska, USA
Stock Tickers: BRK.A and BRK.B on the NYSE
๐ผ Business Model
Berkshire Hathaway is a holding company, meaning it owns other businesses. It has two types of investments:
- Wholly-owned subsidiaries (Berkshire owns 100%)
- Equity investments (Berkshire holds shares in public companies)
๐น Major Subsidiaries Owned Entirely
GEICO (Insurance)
BNSF Railway (Railroad)
Berkshire Hathaway Energy
Dairy Queen
Duracell
Nebraska Furniture Mart
Seeโs Candies
๐ Major Stock Holdings
(Berkshire doesnโt own these companies but owns large stakes in them)
Apple Inc. โ largest holding (over 40% of portfolio)
Bank of America
Coca-Cola
American Express
Chevron (as of recent filings)
๐ง Investment Philosophy
Value investing: Buy undervalued companies with long-term potential.
Long-term focus: Hold investments for decades.
Strong management: Buffett invests in companies with excellent leadership.
โBuy businesses, not stocks.โ
๐ Class A vs Class B Shares
BRK.A: Original shares, very expensive (often over $500,000 per share)
BRK.B: Introduced to allow smaller investors (much cheaper)
๐งพ Interesting Facts
Berkshire rarely pays dividends; it reinvests profits.
Buffett writes highly anticipated annual shareholder letters, full of insights.
Its cash reserves often exceed $100 billion, giving it buying power during crises.