Berkshire Hathaway
Template:Short description Template:Use American English Template:Use mdy dates {{#invoke:Infobox|infobox}}Template:Template otherTemplate:Main other{{#invoke:Check for clobbered parameters|check|nested=1|template=Infobox company|cat=Template:Main other|name; company_name|logo; company_logo|logo_alt; alt|trade_name; trading_name|former_names; former_name|type; company_type|predecessors; predecessor|successors; successor|foundation; founded|founders; founder|defunct; dissolved|hq_location; location|hq_location_city; location_city|hq_location_country; location_country|num_locations; locations|areas_served; area_served|net_income; profit|net_income_year; profit_year|owners; owner |homepage; website }}{{#invoke:Check for unknown parameters|check|unknown=Template:Main other|preview=Page using Template:Infobox company with unknown parameter "_VALUE_" | ignoreblank=y | alt | area_served | areas_served | assets | assets_year | aum | brands | company_logo | company_name | company_type | defunct | dissolved | divisions | embed | equity | equity_year | fate | footnotes | former_name | former_names | foundation | founded | founder | founders | genre | homepage | hq_location | hq_location_city | hq_location_country | incorporated | image | image_alt | image_caption | image_size | image_upright | income_year | industry | ISIN | key_people | location | location_city | location_country | locations | logo | logo_alt | logo_caption | logo_class | logo_size | logo_upright | members | members_year | module | name | native_name | native_name_lang | net_income | net_income_year | num_employees | num_employees_year | num_locations | num_locations_year | operating_income | owner | owners | parent | predecessor | predecessors | production | production_year | products | profit | profit_year | rating | ratio | revenue | revenue_year | romanized_name | services | subsid | successor | successors | traded_as | trade_name | trading_name | type | website| qid | fetchwikidata | suppressfields | noicon | nocat | demo | categories }}
Berkshire Hathaway Inc. (Template:IPAc-en) is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. Originally a textile manufacturer, the company transitioned into a conglomerate starting in 1965 under the management of chairman and CEO Warren Buffett and vice chairman Charlie Munger (from 1978 to 2023). Greg Abel now oversees most of the company's investments and has been named as Buffett's successor. Buffett personally owns 38.4% of the Class A voting shares of Berkshire Hathaway, representing a 15.1% overall economic interest in the company.<ref name="14A" />
The company is often compared to an investment fund; between 1965, when Buffett gained control of the company, and 2023, the company's shareholder returns amounted to a compound annual growth rate (CAGR) of 19.8% compared to a 10.2% CAGR for the S&P 500.<ref name=":0">Template:Cite news</ref> However, in the 10 years ending in 2023, Berkshire Hathaway produced a CAGR of 11.8% for shareholders, compared to a 12.0% CAGR for the S&P 500.<ref name=":1">Template:Cite news</ref> From 1965 to 2023, the stock price had negative performance in only eleven years.<ref name=":2">Template:Cite book</ref> In August 2024, Berkshire Hathaway became the eighth U.S. public company and the first non-technology company to be valued at over $1 trillion on the list of public corporations by market capitalization.<ref name=":3">Template:Cite news</ref>
Berkshire Hathaway is ranked 5th on the Fortune 500 rankings of the largest United States corporations by total revenue and 9th on the Fortune Global 500.<ref name=":4">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Berkshire is one of the ten largest components of the S&P 500<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and is on the list of largest employers in the United States. Its class A shares have the highest per-share price of any public company in the world, reaching $700,000 in August 2024, because the board of directors has historically been opposed to stock splits.<ref>Template:Cite news</ref>
HistoryEdit
Template:Proseline Berkshire Hathaway originated as a textile manufacturer formed in 1955 from the merger of Hathaway Manufacturing Company and Berkshire Fine Spinning Associates.<ref>Template:Cite book</ref><ref>Template:Cite book</ref><ref>Template:Cite book</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Grow">Template:Cite book</ref> After the merger, Berkshire Hathaway had 15 plants employing over 12,000 workers with over $120 million in revenue, and was headquartered in New Bedford.<ref name="Grow" /> However, seven of those locations were closed by the end of the 1950s, accompanied by large layoffs.
In 1962, Warren Buffett began buying Berkshire Hathaway stock for his investment fund, Buffett Partnership Ltd., at $7.50 per share, anticipating that as the company liquidated textile mills there would come a tender offer when he could sell the shares at a profit. A year later, Buffett's fund owned 7% of the company.<ref name="stupid">Template:Cite news</ref> In 1964, Buffett offered to sell his shares back to the company for $11.50 each.<ref name="stupid" /> Seabury Stanton, the manager of Berkshire Hathaway, told Buffett orally that he had a deal.<ref name="stupid" /> A few weeks later, Warren Buffett received the tender offer in writing, but the tender offer was for only $11.375 per share. Buffett later admitted that this lower, undercutting offer made him angry.<ref name="Worst">Template:Cite news</ref> Instead of selling at the slightly lower price, Buffett bought more of the stock at an even higher price to take control of the company and fire Stanton; Stanton and his son resigned in 1965.<ref>Template:Cite news</ref> However, this left Buffett's fund with a major interest in a declining textile business.
Buffett has described buying the Berkshire Hathaway textile company as the biggest investment mistake he had ever made, denying him compounded investment returns of about $200 billion over the subsequent 45 years.<ref name="Worst" /> He has estimated that had he invested the same money directly in insurance businesses instead of indirectly via Berkshire Hathaway (due to what he perceived as a slight by an individual), it would have paid off several hundredfold.<ref>Template:Cite news</ref> In 1985, the company's last textile operations were shut down.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Also in 1962, Warren Buffett set up his office in Omaha, Nebraska, at the current Berkshire Hathaway headquarters located at Blackstone Plaza (formerly named Kiewit Plaza).<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> As of the end of 2024, the company had only 27 employees at that corporate headquarters.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In 1963, Franklin Otis Booth Jr. invested $1 million in the company and in 1968, David Gottesman invested in the company. The investments made both individuals billionaires.<ref>Template:Cite news</ref>
AcquisitionsEdit
In March 1967, Berkshire acquired National Indemnity Company, based in Omaha, Nebraska, for $8.6 million in the first acquisition by the company under Buffett's control and the company's entrance into the insurance business. National Indemnity was founded in 1940 by Jack Dabney Ringwalt.<ref>Template:Cite news</ref> In 2012, National Indemnity acquired workers' compensation insurer GUARD for $221 million.<ref>Template:Cite news</ref>
Berkshire acquired See's Candies in 1972 for $25 million.<ref name="reasons">Template:Cite news</ref> It produces boxed chocolates and other confectionery products in two large kitchens in California. See's revenues are highly seasonal, with approximately 50% of total annual revenue earned in the months of November and December.<ref>Template:Cite news</ref> By 2019, the $25 million investment had returned over $2 billion, or an 8000% return, to Berkshire.<ref name="reasons" />
In 1976, Berkshire first invested in GEICO, at a time when it was facing financial difficulty and had a very low stock price.<ref>Template:Cite news</ref>
In 1977, Berkshire bought the Buffalo Evening News and resumed publication of a Sunday edition of the paper that had ceased in 1914. After the morning newspaper Buffalo Courier-Express ceased operation in 1982, the Buffalo Evening News changed its name to The Buffalo News and began to print morning and evening editions. It now prints only a morning edition.<ref>Template:Cite news</ref> Berkshire formed BH Media Group with a purchase of the Omaha World-Herald in December 2011,<ref>Template:Cite news</ref> which included six other daily newspapers and several weeklies across Nebraska and southwest Iowa.<ref>Template:Cite news</ref> In June 2012, Berkshire bought 63 newspapers from Media General, including the Richmond Times-Dispatch and Winston-Salem Journal, for $142 million in cash.<ref>Template:Cite news</ref> In 2012, Berkshire Hathaway bought Texas dailies The Bryan-College Station Eagle and the Waco Tribune-Herald.<ref>Template:Cite news</ref> In 2013, the company bought the Tulsa World, the Greensboro, North Carolina-based News & Record, Virginia's Roanoke Times, and Press of Atlantic City.<ref>Template:Cite news</ref> In 2014, Graham Holdings Company sold its Miami television station, ABC affiliate WPLG to BH Media in a cash and stock deal.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In June, 2018, Lee Enterprises and Berkshire Hathaway reached a five-year agreement to allow Lee Enterprises to manage Berkshire Hathaway's newspaper and digital operations.<ref>Template:Cite news</ref> In 2020, Lee Enterprises acquired BH Media Group's publications and The Buffalo News for $140 million in cash, retaining WPLG.<ref name="NO">Template:Cite press release</ref><ref>Template:Cite news</ref> In conjunction with the sale, Berkshire lent $576 million to Lee.<ref name="NO" />
In 1983, Berkshire acquired Nebraska Furniture Mart for $60 million.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> In 2000, Nebraska Furniture Mart bought Homemakers Furniture.<ref>Template:Cite news</ref>
In 1986, Berkshire acquired Scott Fetzer Company, a diversified group of 32 brands that manufactures and distributes products for residential, industrial, and institutional use, including Ginsu knives and World Book Encyclopedia. It included Kirby Company, which was sold in 2021, Wayne Water Systems, and Campbell Hausfeld products.<ref>Template:Cite news</ref> Campbell Hausfeld was transferred to Marmon, also a Berkshire subsidiary, in 2015.
In January 1986, Berkshire acquired Fechheimer Brothers, owner of Flying Cross, which manufactures public safety uniforms, and Vertx, a civilian tactical clothing company.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In 1991, Berkshire acquired H.H. Brown Shoe Group.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In May 1995, Berkshire acquired RC Willey Home Furnishings.<ref>Template:Cite news</ref> In June 1997, Berkshire acquired Star Furniture.<ref>Template:Cite news</ref>
In January 1996, Berkshire acquired full ownership of GEICO, acquiring the 49% of the company that it did not then own for $2.3 billion.<ref>Template:Cite news</ref> GEICO, headquartered in Chevy Chase, Maryland, primarily offers private passenger automobile insurance marketed directly to individual consumers in the United States.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The company is known for its advertising characters including a gecko and the GEICO Cavemen.
In February 1997, Berkshire acquired FlightSafety International (FSI), a pilot training company founded in 1951 by Albert Lee Ueltschi and headquartered at LaGuardia Airport in Flushing, New York. It uses flight simulators and is the largest provider of professional aviation training services.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In October 1997, Berkshire acquired Dairy Queen, based in Edina, Minnesota, for $585 million. It franchises approximately 6,000 stores operating under the names Dairy Queen, Orange Julius, and Karmelkorn that sell dairy desserts, beverages, prepared foods, blended fruit drinks, popcorn, and other snack foods.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In July 1998, Berkshire Hathaway acquired NetJets, formerly Executive Jet Aviation, for $725 million in cash.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> NetJets is the world's largest provider of fractional ownership programs for general aviation aircraft. In 1986, NetJets created the fractional ownership of aircraft concept and introduced its NetJets program in the United States with one aircraft type. In 2019, the NetJets program operated more than 10 aircraft types with a fleet size of greater than 750.<ref>Template:Cite news</ref>
In December 1998, Berkshire acquired Gen Re, headquartered in Stamford, Connecticut, for $22 billion.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Berkshire paid for the acquisition with Class A shares valued at $58,400 each; Buffett later said he overpaid, despite strong performance by General Re.<ref>Template:Cite news</ref>
In 1999, Berkshire acquired MidAmerican Energy Holdings. At the time of purchase, Berkshire's voting interest was limited to 10% of the company's shares, but this restriction ended when the Public Utility Holding Company Act of 1935 was repealed in 2005. It owns Northern Powergrid, which operates in the UK.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In 2005, it acquired PacifiCorp for $5.1 billion in cash, and assumed $4.3 billion in PacificCorp debt and preferred stock.<ref>Template:Cite news</ref> MidAmerican was rebranded as Berkshire Hathaway Energy (BHE) in April 2014.<ref>Template:Cite news</ref> The division owns a residential real estate brokerage business, which, in March 2013, was rebranded as HomeServices of America, a division of Berkshire Hathaway Energy.<ref>Template:Cite news</ref> In addition to brokerage services, it provides mortgage loan originations, title insurance and closing services, home warranty, property insurance and casualty insurance and other related services. The company has acquired several residential real estate brokerages including Long & Foster, acquired in September 2017.<ref>Template:Cite press release</ref>
In October 1999, Berkshire acquired Jordan's Furniture for an estimated $200 million to $300 million.<ref>Template:Cite news</ref>
CORT Business Services Corporation was acquired in February 2000 by Wesco Financial Corporation, an 80.1% owned subsidiary of Berkshire and is the largest U.S. provider of rental furniture, accessories and related services in the "rent-to-rent" segment of the furniture rental industry.<ref>Template:Cite news</ref>
In May 2000, Berkshire acquired Ben Bridge Jeweler, a chain of jewelry stores established in 1912 with locations primarily in the western United States.<ref>Template:Cite news</ref> Helzberg Diamonds, a chain of jewelry stores based in Kansas City that began in 1915, was acquired by Berkshire in 1995 after a chance run in between Buffett and Barnett Helzberg on a street in New York City.<ref>Template:Cite news</ref>
In June 2000, the company acquired Justin Brands, the parent company of Justin Boots, Acme Boots, and Acme Brick for $600 million in cash.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Headquartered in Fort Worth, Texas, Acme manufactures and distributes clay bricks (Acme Brick), concrete block (Featherlite), and cut limestone (Texas Quarries). Justin Brands also owns Chippewa Boots, Nocona Boots, and Tony Lama Boots.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In December 2000, Berkshire acquired Benjamin Moore & Co., headquartered in Montvale, New Jersey. Moore formulates, manufactures, and sells architectural coatings that are available primarily in the United States and Canada. Buffett agreed not to sell the products through major retail chains.<ref>Template:Cite news</ref>
In January 2001, Berkshire acquired 87% of Dalton, Georgia-based Shaw Industries. It acquired the remaining 12% in January 2002. Shaw is the world's largest carpet manufacturer based on both revenue and volume of production and designs and manufactures over 3,000 styles of tufted and woven carpet and laminate flooring for residential and commercial use under approximately 30 brand and trade names and under certain private labels.<ref>Template:Cite news</ref>
In February 2001, Berkshire acquired Johns Manville, established in 1858 and a manufacturer of fiberglass wool insulation products for homes and commercial buildings, as well as pipe, duct, and equipment insulation products.<ref>Template:Cite news</ref>
In July 2001, Berkshire acquired a 90% equity interest in MiTek, headquartered in Chesterfield, Missouri, which makes engineered connector products, engineering software and services, and manufacturing machinery for the truss fabrication segment of the building components industry.<ref>Template:Cite press release</ref> In May 2008, Mitek acquired Hohmann & Barnard, a fabricator of anchors and reinforcement systems for masonry.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In October 2008, Mitek acquired Blok-Lok of Toronto, Canada. On April 23, 2010, Mitek acquired the assets of Dur-O-Wal from Dayton Superior.<ref>Template:Cite news</ref>
In February 2002, Berkshire acquired Albecca, headquartered in Norcross, Georgia, operating under the Larson-Juhl name. Albecca designs, manufactures, and distributes custom framing products, including wood and metal molding, matboard, foamboard, glass, equipment, and other framing supplies.<ref>Template:Cite news</ref>
In April 2002, Berkshire acquired Fruit of the Loom for $835 million in cash. It acquired Russell Corporation in August 2006, for $600 million.<ref>Template:Cite news</ref> Fruit of the Loom also acquired Brooks Sports in 2006.<ref>Template:Cite news</ref>
In September 2002, Berkshire acquired Garanimals for $273 million.<ref>Template:Cite news</ref>
In October 2002, Berkshire acquired The Pampered Chef, the largest direct seller of kitchen tools in the United States. Products are researched, designed, and tested by The Pampered Chef, and manufactured by third-party suppliers. From its headquarters in Addison, Illinois, The Pampered Chef utilizes a network of more than 65,000 independent sales representatives to sell its products through home-based party demonstrations, principally in the United States.<ref>Template:Cite news</ref>
Also in October 2002, Berkshire also acquired CTB International.<ref>Template:Cite news</ref><ref>Template:Cite press release</ref> CTB, headquartered in Milford, Indiana, is a designer, manufacturer, and marketer of systems used in the grain industry and in the production of poultry, hogs, and eggs. Products are produced in the United States and Europe and are sold primarily through a global network of independent dealers and distributors, with peak sales occurring in the second and third quarters.
In May 2003, Berkshire acquired McLane Company from Walmart.<ref>Template:Cite news</ref> The company later acquired Professional Datasolutions and Salado Sales. McLane provides wholesale distribution and logistics services in all 50 states and internationally in Brazil to customers that include discount retailers, convenience stores, quick-service restaurants, drug stores and movie theatre complexes.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In August 2003, Berkshire Hathaway acquired Clayton Homes, a maker of manufactured housing, modular homes, storage trailers, chassis, intermodal piggyback trailers and domestic containers, headquartered near Knoxville, Tennessee, for $1.7 billion.<ref>Template:Cite news</ref>
In July 2005, Berkshire Hathaway acquired Forest River, the world's largest seller of recreational vehicles, from Pete Liegl for $800 million.<ref>Template:Cite news</ref>
In 2005, Berkshire acquired Applied Underwriters. In 2019, Applied Underwriters was sold back to its founder for $920 million.<ref>Template:Cite news</ref>
In January 2006, Berkshire bought Business Wire, a U.S. press release agency.<ref>Template:Cite news</ref>
In March 2007, Berkshire Hathaway acquired TTI, Inc. Headquartered in Fort Worth, Texas, TTI is the largest distributor specialist of passive, interconnect, and electromechanical components. TTI's extensive product line includes; resistors, capacitors, connectors, potentiometers, trimmers, magnetic and circuit protection components, wire and cable, identification products, application tools, and electromechanical devices.<ref>Template:Cite press release</ref>
In April 2007, Berkshire acquired 10.9% of BNSF Railway for $3.23 billion.<ref>Template:Cite news</ref> In February 2010, the remaining portion that it did not already own was acquired for $26 billion.<ref>Template:Cite news</ref> This was the largest acquisition to date in Berkshire's history.<ref>Template:Cite news</ref>
NRG (Nederlandse Reassurantie Groep) was acquired by Berkshire from ING Group in December 2007.<ref>Template:Cite press release</ref><ref name="start">Template:Cite news</ref>
Also in December 2007, when stresses that led to the 2008 financial crisis were forming, Berkshire created a government bond insurance company to insure municipal bonds, starting with New York State bonds.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref name="start" />
In 2008, Berkshire Hathaway acquired 60% Marmon Group, a conglomerate owned by the Pritzker family for over fifty years that owned and operated companies that produce railroad tank cars, shopping carts, plumbing pipes, metal fasteners, wiring and water treatment products used in residential construction. Berkshire acquired the remainder of Marmon in 2013.<ref>Template:Cite press release</ref>
In September 2011, Berkshire Hathaway acquired Lubrizol for $9 billion in cash.<ref>Template:Cite news</ref>
In March 2011, Berkshire Hathaway made its first foray into the Indian insurance sector with its non-direct subsidiary BerkshireInsurance.com.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In 2012, Berkshire acquired Oriental Trading Company, a direct marketing company for novelty items, small toys, and party items for around $500 million.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite press release</ref>
On October 2, 2014, Berkshire Hathaway Automotive, an auto dealership subsidiary, was created through the acquisition of Van Tuyl Group, the largest auto dealer in the nation that was still independently owned up to that date. It is now the fifth-largest auto dealership group, with ownership of 81 dealerships and revenues of $8 billion.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In January 2016, Berkshire Hathaway acquired Precision Castparts Corp. for $32.1 billion.<ref>Template:Cite press release</ref> In 2020, Buffett said he overpaid for the company and wrote down its value by approximately $10 billion.<ref>Template:Cite news</ref>
In February 2016, Berkshire Hathaway acquired Duracell from Procter & Gamble for $4.7 billion in stock in P&G previously owned by Berkshire Hathaway.<ref>Template:Cite press release</ref><ref>Template:Cite news</ref>
In 2017, Berkshire acquired 38.6% of truck stop chain Pilot Flying J for $2.8 billion, followed by the acquisition of an additional 41.4% of the company for $8.2 billion in 2023, and the remaining 20% in 2024 for $3 billion. It appointed two Berkshire Hathaway Energy executives as CEO and CFO of the company, retaining Jimmy Haslam as chairman.<ref>Template:Cite news</ref>
In October 2022, Berkshire Hathaway acquired insurance company Alleghany Corporation for $11.6 billion.<ref>Template:Cite press release</ref> As part of the transaction, Berkshire reduced the purchase price of the company by any fees that it paid investment bankers. This move was touted as an example of Warren Buffett's "disdain" for investment bankers.<ref>Template:Cite news</ref>
Major stock purchases and salesEdit
Buffett began investing in Wells Fargo in 1989; however, by the first quarter of 2022, Berkshire Hathaway had sold its entire interest in the company.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
Buffett turned down an opportunity to invest in Amazon.com in 1994, as he was unable to predict the company's future growth and it was losing money.<ref>Template:Cite news</ref> Berkshire Hathaway bought shares in Amazon in 2019, a position worth $2 billion at the time.<ref>Template:Cite news</ref>
Berkshire made its first investment in Tesco in 2006, and in 2012 it raised this stake to over 5% of the company, investing a total of $2.3 billion.<ref>Template:Cite news</ref> Buffett sold around 30% of this stake in 2013 when he "soured somewhat on the company's then-management", realizing a profit of $43 million.<ref name="sucking">Template:Cite news</ref> As Tesco's problems mounted through 2014, Berkshire sold all the remaining shares with Buffett saying to shareholders that the delay in selling shares was costly. Berkshire realized an after-tax loss of $444 million on the Tesco investment.<ref name="sucking" />
In early 2008, Berkshire increased its stake in ConocoPhillips to 85 million shares.<ref>Template:Cite news</ref> Buffett later described this as "a major mistake" as the price of oil collapsed during the Great Recession. Berkshire sold most of its shares but held 472,000 shares until 2012. That year, ConocoPhillips completed the corporate spin-off of Phillips 66, of which Berkshire owned 27 million shares. Berkshire later sold $1.4 billion worth of shares to Phillips 66 in exchange for Phillips Specialty Products.<ref>Template:Cite news</ref> Buffett frequently referred to Phillips 66 as one of the best businesses Berkshire invested in because of its consistent dividends and share repurchase programs. However, Berkshire sold its entire holdings in 2020.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In September 2008, at the peak of the 2008 financial crisis, Berkshire invested $5 billion in preferred stock in Goldman Sachs to provide it with a source of funding when capital markets had become constrained. The preferred stock yielded an annual interest rate of 10%, earning Berkshire $500 million in interest income per year. Berkshire also received warrants to buy 43.5 million shares with at $115 per share, which were exercisable at any time for a five-year term.<ref>Template:Cite press release</ref><ref>Template:Cite news</ref> Goldman had the right to re-purchase the preferred stock at a 10% premium, and in March 2011 exercised this right paying $5.5 billion to Berkshire. Profit on the preferred stock was estimated at $1.8 billion<ref>Template:Cite news</ref> and exercising the warrants yielded a profit of more than $2 billion.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Buffett defended Lloyd Blankfein's decisions as CEO of Goldman Sachs and his efforts to improve the reputation of the company during the 2008 financial crisis.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In September 2008, BHE invested about US$230 million for approximately a 10% share of BYD Auto.<ref>Template:Cite news</ref> Some shares were sold in 2023 and 2024, with Buffett motivated by the China–United States trade war.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In October 2008, Berkshire invested $6.5 billion in Wrigley Company as part of a financing package to enable Mars Inc. to acquire the company. Berkshire sold its remaining bonds and preferred stock to Mars in 2016.<ref>Template:Cite news</ref>
In early 2011, Berkshire first invested in IBM. The shares were entirely sold in 2018.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
On August 26, 2011, Berkshire Hathaway bought $5 billion of preferred shares in Bank of America.<ref>Template:Cite news</ref> The shares yielded 6%, earning Berkshire $300 million in annual interest. Alongside the preferred stock investment, Berkshire obtained warrants allowing Berkshire to buy 700 million common shares at $7.14 per share, which were exercised. By 2017, this position had yielded a profit of about $12 billion excluding the annual interest earned from the preferred stock.<ref>Template:Cite news</ref>
In 2013, Berkshire and 3G Capital acquired H. J. Heinz Company for $28 billion including debt.<ref>Template:Cite news</ref> In 2015, Heinz merged with Kraft Foods to form Kraft Heinz.<ref>Template:Cite news</ref> In 2019, Buffett said that he overpaid in the deal.<ref>Template:Cite news</ref>
In 2013, Berkshire owned 1.74 million shares of Gannett; however, it sold its shares in the second quarter of 2013.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In the first quarter of 2016, Berkshire began investing in Apple Inc., with a purchase of 9.8 million shares (0.2% of Apple) worth $1 billion. By the end of June 2016, this stake had increased to 15.2 million shares (0.3% of Apple). By December 31, 2016, Berkshire had built up a stake of 57.4 million shares (1.1% of Apple) with an estimated average acquisition price of $110 per share (before the 2020 4:1 split). Aggressive stock purchases continued and by March 31, 2017, Berkshire had amassed a stake of 129 million shares (2.5% of Apple). By December 31, 2017, Berkshire owned 166 million shares (3.3% of Apple). Berkshire bought 75 million more shares in early 2018.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Template:As of Berkshire owned 5.8% of Apple.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="dumps">Template:Cite news</ref> Berkshire Hathaway reduced its Apple stake by nearly 50%, selling $75.5 billion worth of stock in the second quarter of 2024, increasing its cash reserves to a record $276.9 billion.<ref>Template:Cite news</ref> Buffett had said that Apple has developed an ecosystem and level of brand loyalty that provides it with an economic moat, and that consumers appear to have a degree of price insensitivity when it comes to the iPhone. While Buffett generally does not invest in tech stocks, he has said that Apple is a consumer products company and that he understands consumer products businesses.<ref>Template:Cite news</ref>
In the third quarter of 2016, Berkshire surprised investors by making large equity investments in the major US airlines. Buffett had previously described airlines as a "deathtrap for investors". Buffett had made an investment in US Airways in 1989 which, although he sold for a profit, almost lost Berkshire a substantial sum of money.<ref>Template:Cite news</ref> In 2017, Berkshire was the largest shareholder in United Airlines and Delta Air Lines and a top 3 shareholder in Southwest Airlines and American Airlines. Buffett himself has described this as a "call on the industry" rather than a choice in an individual company. American Airlines' CEO Doug Parker is said to have won over Ted Weschler in arguing that the airline industry had consolidated sufficiently and rationalized supply such that longer-term profitability could be achieved in an industry that has historically been loss-making in aggregate.<ref>Template:Cite news</ref> In April 2020, Berkshire sold all shares in the airlines due to the impact of the COVID-19 pandemic on commercial air transport.<ref>Template:Cite news</ref>
In June 2017, Berkshire invested $377 million in Store Capital, a Scottsdale-based real estate investment trust that owned more than 1,750 properties in 48 states; the company was sold to private equity firms in 2022.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In June 2017, Berkshire acquired a 38.4% stake in Home Capital Group for $400 million, giving a lifeline to the Toronto-based embattled mortgage lender.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> The shares were sold in 2018.<ref>Template:Cite news</ref>
In 2019, by buying warrants and preferred stock, Berkshire provided $10 billion in financing to Occidental Petroleum as part of its acquisition of Anadarko Petroleum. Berkshire began investing in common shares of Occidental beginning in 2022 and has increased its position since.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
Between September 2019 and August 2020, Berkshire bought more than 5% of the outstanding stock of each of the five largest Japanese sogo shosha (Itochu, Mitsubishi, Mitsui, Sumitomo, and Marubeni) through its National Indemnity subsidiary. These stakes were worth a total of over $6 billion as of August 2020. By April 2023, Berkshire increased its stake in each of those companies to 7.4%.<ref>Template:Cite news</ref> He continued to increase the stakes over time.<ref>Template:Cite news</ref>
In the second quarter of 2020, Berkshire added a position of more than 20 million shares in Barrick Gold; the shares were sold in 2021.<ref>Template:Cite news</ref> In the third quarter of 2020, the company agreed to buy Dominion Energy's natural gas transmission and storage operations.<ref>Template:Cite news</ref>
In the first quarter of 2022, Berkshire acquired a $2.6 billion stake in Paramount Global.<ref>Template:Cite news</ref> However, at an annual meeting on May 4, 2024, Buffett stated that he had sold all of his shares in Paramount at a substantial loss, blaming himself for deciding to invest.<ref>Template:Cite news</ref>
In the first quarter of 2022, Berkshire acquired 121 million shares of HP Inc. valued at more than $4.2 billion; the shares were sold in 2023 and 2024.<ref>Template:Cite news</ref>
In the third quarter of 2022, Berkshire bought 60 million shares in TSMC valued at $4.1 billion; the shares were sold in late 2022 and 2023 in part due to geopolitical tensions.<ref>Template:Cite news</ref><ref name="dumps" /><ref>Template:Cite news</ref>
Berkshire began investing in Chubb Limited in 2023; by 2024, it owned a 6.4% stake worth $6.7 billion.<ref>Template:Cite news</ref>
Berkshire Hathaway bought 5.62 million shares of Constellation Brands (STZ) in the fourth quarter of 2024. This new position was worth approximately $1.24 billion at the end of the year 2024. The purchase made Berkshire Hathaway the sixth-largest shareholder of Constellation Brands.
Berkshire Hathaway sold its stake in Ulta Beauty in the fourth quarter of 2024. The company exited its position in Ulta Beauty just two quarters after initially acquiring shares in the second quarter of 2024.
In the fourth quarter of 2024, Berkshire Hathaway liquidated all of its ETF holdings in the S&P 500.<ref>Template:Cite news</ref>
In March 2025, The Wall Street Journal reported that Compass is in advanced talks to buy HomeServices of America, Berkshire Hathaway's real estate brokerage business. No acquisition price has yet been determined.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Selected holdingsEdit
SubsidiariesEdit
| Business line | Companies |
|---|---|
| Insurance | Template:Flatlist |
| Railroad | BNSF Railway |
| Utilities & energy | Template:Flatlist |
| Manufacturing | Template:Flatlist |
| Services & retailing | Template:Flatlist |
SecuritiesEdit
Aside from its subsidiaries, Berkshire manages a portfolio of non-controlling stock investments into which its insurance companies invest policy premiums. These holdings are broadly disclosed in its Form 13F filings, although the company sometimes obtains permission to keep active trades confidential.<ref name="tracker" />
| Category | Company | Share (%) | ValueTemplate:Efn |
|---|---|---|---|
| Finance & insurance | American Express | 21.6 | $45.4 billion |
| Bank of America | 8.9 | $30.7 billion | |
| Moody's Ratings | 13.6 | $12.6 billion | |
| Chubb Limited | 6.7 | $7.1 billion | |
| Visa Inc. | 0.4 | $2.9 billion | |
| Mastercard | 0.4 | $2.2 billion | |
| Capital One | 2.0 | $1.5 billion | |
| Aon | 1.9 | $1.6 billion | |
| Ally Financial | 9.5 | $1.1 billion | |
| Manufacturing | The Coca-Cola Company | 9.3 | $27.8 billion |
| Kraft Heinz | 26.9 | $9.7 billion | |
| BYD Auto | 4.9 | $2.6 billion | |
| Louisiana-Pacific | 8.1 | $0.5 billion | |
| HEICO | 1.3 | $0.2 billion | |
| Telecommunications | Sirius XM | 35.4 | $3.0 billion |
| Verisign | 14.0 | $3.1 billion | |
| T-Mobile US | 0.4 | $1.1 billion | |
| Charter Communications | 1.5 | $0.7 billion | |
| Computer technology | Apple Inc. | 2.0 | $73.6 billion |
| Amazon.com | 0.1 | $2.2 billion | |
| Petroleum | Chevron Corporation | 6.6 | $18.7 billion |
| Occidental Petroleum | 28.2 | $13.6 billion | |
| Diversified | Mitsubishi | 8.9 | $5.6 billion |
| Itochu | 7.5 | $4.8 billion | |
| Mitsui | 8.4 | $4.5 billion | |
| Marubeni | 8.5 | $2.1 billion | |
| Sumitomo Group | 8.4 | $2.1 billion | |
| Other | Kroger | 6.9 | $3.2 billion |
| Davita | 43.6 | $5.0 billion | |
| Domino's | 6.9 | $1.1 billion | |
| Pool Corporation | 1.6 | $0.2 billion | |
| NVR, Inc. | 0.4 | $0.1 billion |
In addition to these equity positions, the company had $286 billion in Treasury bills, which together with its reported cash of $44 billion made up the largest cash position of any U.S.-based public company.<ref>Form 10-K (2024)</ref><ref>Template:Cite news</ref> Berkshire's annual reports since 2008 have emphasized its commitment to holding ample cash to cover near-term insurance obligations.<ref>See for example 2023 Annual Report, "Property/Casualty Insurance."</ref>
Corporate affairsEdit
Investment strategyEdit
Insurance is a major area of operations and the retained premiums (float) serve as an important source of capital.<ref>Template:Cite news</ref> Buffett has said that he prefers to invest in evergreen businesses that generate predictable long-term returns,<ref>Template:Cite news</ref> that he doesn't invest in companies that he doesn't understand,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and that he does not like to invest in companies that may undergo significant change.<ref>Template:Cite news</ref> The company has generally avoided investing in high-tech firms, missing early opportunities to invest in Microsoft and Amazon.com despite having relationships with the founders of those companies. With some exceptions, the company also usually does not invest in real property due to precise pricing, lack of competitive advantage, complex management, and corporation tax disadvantages.<ref>Template:Cite news</ref>
Edit
Berkshire Hathaway has never undergone a stock split of its Class A shares because of management's desire to attract long-term investors as opposed to short-term speculation.<ref>Template:Cite news</ref> However, in 1996, Berkshire Hathaway created Class B shares, with a per-share value of Template:Frac of that of the original shares (now Class A) and Template:Frac of the per-share voting rights, and after the January 2010 split, at Template:Frac the price and Template:Frac the voting rights of the Class-A shares. Holders of class A stock are allowed to convert their stock to Class B, though not vice versa. Buffett was reluctant to create the class B shares but did so to thwart the creation of unit investment trusts that would have marketed themselves as Berkshire look-alikes.<ref>Template:Cite news</ref>
In January 2010, as part of the acquisition of BNSF Railway, Berkshire completed a 50-to-1 stock split of its class B shares. The increased market liquidity resulted in the company's inclusion in the S&P 500.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
Edit
On March 16, 1980, Berkshire became a public company via an initial public offering, selling Class A shares for $290 each.<ref>Template:Cite news</ref> Shares closed over $1,000 for the first time on August 26, 1983 and over $10,000 on October 16, 1992.<ref name="milestone">Template:Cite news</ref> Shares closed over $100,000 for the first time on October 23, 2006.<ref>Template:Cite news</ref> They first closed over $200,000 on August 14, 2014.<ref name="milestone" /> Shares closed over $500,000 for the first time on March 16, 2022.<ref>Template:Cite news</ref>
Executive compensationEdit
The salary for Buffett is $100,000 per year with no stock options,<ref name="14A" /> which is among the lowest salaries<ref>Template:Cite news</ref> for CEOs of large companies in the United States.<ref>Template:Cite news</ref> Buffett's salary has not changed in 35 years.<ref name="14A" /> Buffett also receives approximately $300,000 worth of home security services from the company annually.<ref name="14A" />
Abel and Jain each receive a salary of $20 million per year, with a possible $3 million annual bonus at the discretion of Buffett.<ref name="14A" />
Edit
Buffett's letters to shareholders are published annually.
Berkshire's annual shareholders' meetings, nicknamed "Woodstock for Capitalists", take place at the CHI Health Center Omaha in Omaha, Nebraska. Attendance generally totals over 40,000 people and the meetings last for 6 to 8 hours, with Buffett himself, as well as Abel and Jain, answering questions from shareholders.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
Known for their humor and light-heartedness, the meetings typically start with a cartoon made for Berkshire shareholders.
- The 2004 cartoon featured Arnold Schwarzenegger in the role of "The Warrenator" who travels through time to stop Buffett and Munger's attempt to save the world from a "mega" corporation formed by Microsoft-Starbucks-Wal-Mart. Schwarzenegger is later shown arguing in a gym with Buffett regarding Proposition 13.<ref>Template:Cite news</ref>
- The 2006 cartoon depicted actresses Jamie Lee Curtis and Nicollette Sheridan lusting after Munger.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
- The 2007 cartoon included Buffett playing basketball against LeBron James.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
- The 2008 cartoon depicted Charlie Munger becoming President of the United States, after which he promotes eating at Dairy Queen to relieve the effects of increased temperatures due to climate change.<ref>Template:Cite magazine</ref>
- The 2009 cartoon, aired just after the 2008 financial crisis, showed a new mattress, named The Nervous Nellie, which has a hidden compartment for people who prefer to hide their money in the mattress than put it in the bank.<ref>{{#invoke:citation/CS1|citation
|CitationClass=web }}</ref>
- The 2016 cartoon featured a spoof of the 1983 film Trading Places; in this version, Munger and Jain along with the GEICO gecko conspire to manipulate the market for cocoa beans to affect See’s Candy.<ref>Template:Cite news</ref>
- The 2022 cartoon featured a veterinarian who expanded his business using his American Express credit card.<ref>Template:Cite news</ref>
GovernanceEdit
Current members of the board of directors of Berkshire Hathaway are Warren Buffett (chairman), Greg Abel (vice chairman of non-insurance business operations), Ajit Jain (vice chairman of insurance operations), Chris Davis, Susan Alice Buffett (Buffett's daughter), Howard Graham Buffett (Buffett's son), Ronald Olson, Kenneth Chenault, Steve Burke, Susan Decker, Meryl Witmer, Charlotte Guyman, Esteban Rodriguez Jr.<ref name="10K" />
Charlie Munger served as vice chairman of the company from 1978 until his death on November 28, 2023.<ref>Template:Cite news</ref>
David L. Sokol, CEO of Berkshire Hathaway Energy until early 2008,<ref>Template:Cite news</ref> was a top lieutenant for Buffett. Sokol, who was paid $24 million per year, resigned from Berkshire in 2011 after it was disclosed that he personally made a $3 million profit from Berkshire Hathaway's purchase of Lubrizol.<ref>Template:Cite news</ref>
In October 2010, Berkshire announced that 39-year old Todd Combs, manager of the hedge fund Castle Point Capital, would join as an investment manager.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref>
In early 2012, 50-year-old Ted Weschler, founder of Peninsula Capital Advisors, joined Berkshire as a second investment manager.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Template:Cite press release</ref>
In January 2018, Berkshire Hathaway appointed Ajit Jain and Greg Abel to vice-chairman roles. Abel was appointed vice chairman for non-insurance business operations, and Jain became vice chairman of insurance operations.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Template:Cite news</ref>
In May 2021, Buffett named Greg Abel to be his successor as CEO of Berkshire Hathaway.<ref>Template:Cite news</ref>
In May 2025, Buffett announced his intention to retire as CEO of Berkshire Hathaway at the annual shareholders' meeting, with Greg Abel succeeding him at the end of 2025.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
FinancialsEdit
| citation | CitationClass=web
}}</ref> |
Revenue in million US$ |
Net income in million US$ |
Total assets in million US$ |
Employees |
|---|---|---|---|---|---|
| 2005 | 81,663 | 8,528 | 198,325 | 192,000 | |
| 2006 | 98,539 | 11,015 | 248,437 | 217,000 | |
| 2007 | 118,245 | 13,213 | 273,160 | 233,000 | |
| 2008 | 107,786 | 4,994 | 267,399 | 246,000 | |
| 2009 | 112,493 | 8,055 | 297,119 | 222,000 | |
| 2010 | 136,185 | 12,967 | 372,229 | 260,000 | |
| 2011 | 143,688 | 10,254 | 392,647 | 271,000 | |
| 2012 | 162,463 | 14,824 | 427,452 | 288,500 | |
| 2013 | 182,150 | 19,476 | 484,931 | 302,000 | |
| 2014 | 194,699 | 19,872 | 525,867 | 316,000 | |
| 2015 | 210,943 | 24,083 | 552,257 | 361,270 | |
| 2016 | 223,604 | 24,074 | 620,854 | 367,671 | |
| 2017 | 242,137 | 44,940 | 702,095 | 377,000 | |
| 2018 | 247,837 | 4,021 | 707,794 | 389,000 | |
| 2019 | 254,616 | 81,417 | 817,729 | 391,500 | |
| 2020 | 245,510 | 42,521 | 873,729 | 360,000 | |
| 2021 | 276,094 | 89,795 | 958,784 | 372,000 | |
| 2022 | 302,089 | −22,819 | 948,452 | 383,000 | |
| 2023 | 364,482 | 96,223 | 1,069,978 | 396,500 | |
| 2024 | 371,433 | 88,995 | 1,153,881 | 392,400 |
Awards and recognitionEdit
In 2007, the company was named by Barron's as the most respected company in the world based on a survey of American money managers.<ref>Template:Cite news</ref> It was named second after Apple Inc. on the same survey in 2014<ref>Template:Cite news</ref> and 2015<ref>Template:Cite news</ref> and was second behind Johnson & Johnson in 2016.<ref>Template:Cite news</ref>
Controversies involving subsidiariesEdit
In July 2022, Trident Mortgage Company, a subsidiary of HomeServices of America (owned by Berkshire Hathaway), agreed to a $20 million settlement with the U.S. Department of Justice and the Consumer Financial Protection Bureau over allegations of redlining in the Philadelphia area. Federal investigators found that Trident failed to provide equal access to mortgage credit in neighborhoods with large Black and Latino populations.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>Template:Better
In January 2025, the Consumer Financial Protection Bureau filed a lawsuit against Vanderbilt Mortgage and Finance, a Berkshire Hathaway subsidiary, alleging the company steered borrowers into unaffordable loans. The complaint described aggressive lending practices that resulted in financial hardship, late fees, and in some cases, home loss or bankruptcy.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>Template:Better
A 2025 Reuters investigation reported that Berkshire Hathaway Energy continues to operate several of the most polluting coal-fired power plants in the United States. Despite investments in renewable energy, the company was criticized for its decision to operate these plants until at least 2049, raising public health and environmental concerns.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
See alsoEdit
NotesEdit
ReferencesEdit
External linksEdit
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