In addition to its pricey shares, Berkshire Hathaway is one of the top-performing companies in the market, and either fully owns or owns controlling interests in dozens of major companies - including the likes of Geico, Fruit of the Loom and Dairy Queen. Growing from its beginnings in the textile industry, the company now has reached into a diverse portfolio of industries and sectors - from tech to food. Berkshire Hathaway is a multinational holding company and conglomerate run by the investor, chairman and CEO Warren Buffett.
The company was originally a textile manufacturer, but now owns or holds controlling interests in dozens of big companies including Heinz, Benjamin Moore, Geico and more. The holding company is the most expensive stock on the market. As a diversified holding company and multinational conglomerate , Berkshire Hathaway has invested in or acquired dozens of companies and holdings over the years.
In addition, Berkshire Hathaway also has its own subsidiaries in the insurance and home services industries. But, how did the holding company achieve its world-class reputation and astounding market cap?
The company was later taken over by Buffett's investment group in , and quickly rose to prominence through Buffett's strategy of value investing - by buying up stock or companies that were undervalued.
Buffett transformed an initially struggling textile manufacturing company into what is one of the biggest and most expensive conglomerates and stocks in the world.
By , Buffett liquidated the company's textile operations and solidified its transition into a holding company. Since then, Berkshire Hathaway has kept a diverse portfolio, buying interests or whole companies in food, clothing, transportation and even tech. As a holding company, Berkshire Hathaway owns or has a large stake in dozens of big companies - including both public and private companies.
As of , Berkshire Hathaway fully owned some 50 subsidiaries. Apart from the companies Berkshire Hathaway actually owns, the conglomerate holds large investments in several other companies - including some of the biggest public names on the market. Berkshire Hathaway has considerable investments in various companies - from tech to transportation and more.
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Top Stocks Top Stocks. Stocks Top Stocks. What Is Berkshire Hathaway? Key Takeaways Berkshire Hathaway is a massive holding company, run by famed "value" investor Warren Buffett since the s. Berkshire Hathaway has two classes of stock; its class A shares are among the most expensive on the stock market. It owns a variety of well-known private businesses, such as GEICO, and also has sizeable minority interests in public companies, such as Apple. Article Sources.
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You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. Berkshire also holds a large portfolio of equity securities and derivatives, which are reported separately from these main business activities. The company's list of competitors reflects Berkshire's diverse family of businesses and includes insurance companies All State Corp.
ALL , Progressive Corp. Berkshire also competes with various manufacturers and retailers. Total revenue fell 3. The company noted that the crisis has adversely affected nearly all of its operations, but to varying degrees.
Revenue and earnings from most of the company's manufacturing and its service and retailing businesses declined considerably in the second quarter, but several of these businesses improved significantly in the third and fourth quarters. Net earnings fell As of changes made to GAAP in , the company is required to include unrealized gains and losses arising from changes in its investment portfolio in its reported earnings.
This accounting change contributes to earnings being significantly more volatile than they otherwise would be. Berkshire provides a breakdown of 6 major business segments for revenue and earnings before taxes EBT , a measure of profitability before taxes. Berkshire's underwriting businesses include:. Revenue grew 2. Berkshire's freight rail transportation business operates one of the largest systems in North America.
BNSF Railway ships coal as well as consumer, industrial, and agricultural products. BNSF Railway's revenue fell Berkshire Hathaway Energy is a global energy company with subsidiaries that generate, transmit, store, distribute, and supply energy. The segment's revenue rose 4. Berkshire's manufacturing businesses fall into three categories: industrial products, building products, and consumer products. Manufacturing revenue fell 5.
McLane is a wholesale distributor that serves businesses including convenience stores, discount retailers, wholesale clubs, pharmacies, and more. It's separated into three units: grocery distribution, foodservice distribution, and beverage distribution. Revenue fell 7. The service businesses include grocery and food service distribution, professional aviation training, fractional aircraft ownership, and distribution of electronic components.
The retail businesses include automotive and home furnishings. Segment revenue fell 4. Berkshire Hathaway also owns a large portfolio of equity securities and derivatives. Some of the company's top equity holdings include Apple Inc.
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