Berkshire Hathaway
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Berkshire Hathaway is a holding company (not an operating financial holding company) for a variety of companies. The company holds significant minority stakes in publicly traded companies, such as Apple. The company is headed by Warren Buffett, who serves as chairman and CEO. Berkshire Hathaway is based in Omaha, Nebraska, and originated as a group of textile mills. The company was not doing well due to competition from Asia, so Warren Buffett bought stakes in other industries.
Berkshire Hathaway Owned Companies
Source: www.aktienmitkopf.de
The biggest part of Berkshire Hathaway is comprised of insurance subsidiaries. However, the company also manages hundreds of other companies around the globe, including Duracell, International Dairy Queen, Pampered Chef, Fruit of the Loom, NetJets and GEICO, among others. In addition to owning private companies, Berkshire Hathaway has a large investment portfolio consisting of shares of large publicly traded companies (see chart). The insurance industry is a particular area in which Buffet is interested in investing. The insurance business generated approximately 28% of 2020 revenues. Manufacturing accounted for about 24% of the company's revenue in 2020.
In 1982, the company merged with Blue Chip Stamps (a participation and discount stamp company). The merger resulted in Charlie Munger becoming vice chairman of the company. Warren Buffett and Charlie Munger are not only joint chairmen of Berkshire Hathaway, but also close friends, who have inspired each other with their value-oriented investment style (value investing). Even at their advanced ages, Warren Buffett (b. 1930) and Charlie Munger (b. 1924) led Berkshire Hathaway's 2022 Annual General Meeting, answering questions from investors for several hours.
The market capitalization of Berkshire Hathaway is approximately $780 billion, making it one of the largest publicly traded companies in the world. Since Berkshire Hathaway has a long history of operational success and committed investments, the company has grown to become the seventh largest publicly traded company in the world by market capitalization (as of March 31, 2022).
The New York Stock Exchange trades Berkshire's shares in two classes: A shares and B shares. Berkshire Hathaway Inc Class A shares are currently trading for US $472.257 (as of 02/21/2022). As of February 22, 2012, the share price of Berkshire Hathaway Inc Class B shares is $314.80. From 1965 to 2019, Berkshire Hathaway shares more than doubled the performance of the S&P 500 Index. During this period, the stock gained 20% per year, while the S&P 500 Index gained 10.2% per year.
In the event that Warren Buffet retires, who will succeed him?
As Warren Buffet was born on August 30, 1930, he has already reached the age of 90.
Charlie Munger, Vice Chairman of Berkshire Hathaway, unofficially announced on May 1, 2021 that
Greg Abel
is to succeed Warren Buffett as CEO when Buffett eventually steps down. Abel is the CEO of Berkshire Hathaway Energy and vice chairman responsible for non-insurance activities at Berkshire Hathaway.
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