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Thursday, December 9, 2021

Berkshire Hathaway Inc. Research Report

About Company

Berkshire Hathaway Inc. is a US-based international business holding company with its head office in Omaha, Nebraska, United States. The wholly-owned subsidiary companies of Berkshire Hathaway are the following:

  • Duracell
  • GEICO 
  • BNSF 
  • Dairy Queen 
  • Fruit of the Loom 
  • Lubrizol 
  • Long & Foster
  • Helzberg Diamonds 
  • Shaw Industries 
  • FlightSafety International 
  • Forest River 
  • Pampered Chef 
  • NetJets

The company is the 38.6% stakeholder of Pilot Flying J.

Berkshire Hathaway is a considerable minority stakeholder in the following public firms:

  • American Express – 18.8% 
  • Kraft Heinz Company – 26.7% 
  • Bank of America – 11.9% 
  • The Coca-Cola Company – 9.32% 
  • Apple – 6.3%

At the start of 2016, the firm took over big stakes in the leading United States airways companies such as:

  • Delta Air Lines
  • United Airlines 
  • American Airlines
  • Southwest Airlines

However, Berkshire Hathaway traded the whole of its airways stake at the beginning of 2020. Since 1965, Berkshire Hathaway has achieved a yearly development worth 19% to its stakeholders (in comparison to 9.7% from the Standard & Poor 500 index inclusive of surpluses for the same time). At the same time, it utilized huge volumes of capital, as well as nominal debt.

Berkshire Hathaway Inc. is recognized all over the world for its regulation and management by Warren Buffett. Buffett is the Chief Executive Officer and the Chairman of the company and Charlie Munger is one of the Vice-Chairmen of the organization. In the starting phase of his professional life with Berkshire, Warren concentrated on long-standing investiture in firms whose common stocks are traded publicly. However, of late, Buffett has more often acquired holding organizations. Currently, Berkshire Hathaway is the proprietor of a wide array of commercial enterprises such as merchandising, confectionery, home décor, railways, vacuum cleaner makers, almanacs, production, and supply of liveries, ornaments marketing, and various local gas and electric services companies.

As laid down by the Forbes Global 2000 convention and listing, the company ranks as the 8th biggest publicly traded firm across the world, the 10th biggest corporation in terms of revenue as well as the biggest financial services provider in terms of revenue throughout the world.

As of 2020 August, the company’s Class B stock ranks as the 7th biggest constituent of the Standard & Poor 500 Index. This is founded on a free-float market cap. Berkshire Hathaway is renowned for featuring the costliest stock rate in the chronicles with Class A stocks priced approximately $400,000 each. It is due to the reason that a stock split has never taken place with the company’s Class A stocks. In a communication in 1984, Warren mentioned to stockholders that he did not wish to go for the stock split.


When was Berkshire Hathaway Set up?

Berkshire Hathaway was founded 182 years back in 1839 at Cumberland, Rhode Island, the United States.

Who is the founder of Berkshire Hathaway?

The founder of the company is Oliver Chace, a US-based business tycoon belonging to the 18th and 19th centuries.

Berkshire Hathaway Corporate Governance

Presently, the members of the Board of Directors of the company are the following:

  • Charlie Munger (Vice-Chairman)
  • Warren Buffett (Chairman) 
  • Thomas S. Murphy 
  • Walter Scott, Jr. 
  • Ronald Olson
  • Howard Graham Buffett (son of Warren) 
  • David Gottesman
  • Charlotte Guyman
  • Steve Burke
  • Kenneth Irvine Chenault
  • Meryl Witmer
  • Susan Decker 
  • Greg Abel
  • Ajit Jain

Warren E. Buffett

Warren Edward Buffett is a US-based business tycoon, venture capitalist, and humanitarian. Presently, Buffett serves as the Chief Executive Officer and Chairman of Berkshire Hathaway. He was born on August 30, 1930.

Warren Buffett is viewed as one of the most accomplished venture capitalists in the world. As of October 2021, his net worth stands at more than US $101.1 billion, which turns Buffett into the 10th richest individual in the world.

Since 1970, Warren has been serving as the chairman and biggest stakeholder of the company. Worldwide media has cited Buffett as the “Sage” or “Oracle” of Omaha.

Warren is renowned for his devotion to value investing. He is also famous for his thriftiness in spite of his huge fortune.

Warren Buffett has a BS degree from the University of Nebraska-Lincoln and an MS degree from Columbia University. 

Buffett is a distinguished humanitarian, having vowed to donate 99% of his wealth to humanitarian campaigns, mostly through the Bill & Melinda Gates Foundation. 

In 2009, Buffett set up The Giving Pledge with Bill Gates. This foundation allows business tycoons to promise to distribute a minimum of 50% of their wealth.

Charles T. Munger

Charles Thomas Munger is a US-based business magnate, venture capitalist, erstwhile realty lawyer, humanitarian, and architect-cum-planner. Munger serves as the Vice Chairman of the company, a business multinational owned by Warren Buffett. He was born on 1st January 1924.

Warren has depicted Charles as his man Friday and most intimate collaborator. From 1984 to 2011, Charles acted as Wesco Financial Corporation Chairman. Wesco is currently a wholly-owned subsidiary of the mother organization. Munger serves as the Chairman of the LA-based Daily Journal Corporation in California. He is also a Costco Wholesale Corporation director.

Munger studied Mathematics at the University of Michigan. He also enrolled himself at the California Institute of Technology (Caltech) for studying meteorology. Charles has a Juris Doctor (JD) degree from Harvard Law School as well.

Charles Munger is renowned all over the world for chairing investment activities of the company in collaboration with Warren Buffett.

On 28th December 2011, Charles contributed ten stocks of Berkshire Hathaway Class A share to the University of Michigan (present worth of US $422,214 per stock, or the US $4.22 million gross).

Charlie contributed 500 stocks of Berkshire Hathaway Class A share, worth the US $43.5 million at that time, to Stanford for constructing a graduate pupil accommodation compound in 2004.

Products and Services Offered by Berkshire Hathaway

The products and services offered by the company include the following:

  • Property and casualty insurance
  • Diversified investments 
  • Eateries
  • Public Utilities 
  • Aerospace 
  • Food processing 
  • Media 
  • Playthings
  • Sports equipment 
  • Automobile 
  • Internet 
  • Consumer items
  • Realty

How many People work for Berkshire Hathaway?

As of 2020, 360,000 people are employed with Berkshire Hathaway Inc.

Which area does Berkshire Hathaway Serve?

The company’s clients are based all over the world.

Which companies are the Forerunners of Berkshire Hathaway?

Following is the list of companies acting as forerunners of Berkshire Hathaway:

  • 1839–1929 – Valley Falls Company
  • 1929–1955 – Berkshire Fine Spinning Associates; created in 1929 as a result of the amalgamation of Berkshire Cotton Manufacturing Company and Valley Falls Company
  • 1888–1955 – Hathaway Manufacturing Company, amalgamated in 1955

Who is the proprietor of Berkshire Hathaway? 

Warren Buffett is the proprietor of the company with 16.45% of the financial stake and 30.71% of the combined voting rights.

Berkshire Hathaway Stock Performance

The Class A stocks of Berkshire Hathaway Inc. are traded on the NYSE stock exchange with the ticker symbol BRK-A. Besides, the company stocks are elements of the following indices: 

  • NYSE- BRK.B (Class B)
  • NYSE- BRK.A (Class A)
  • Standard & Poor 500 component – BRK.B
  • Standard & Poor 100 component – BRK.B

On October 13, 2021, BRK-A closed trading with the NYSE at $418,402.00 at 4:02 PM Eastern Daylight Time.

Berkshire Hathaway 1

Berkshire Hathaway Inc. Financial Performance 

Consolidated statement of income for Berkshire Hathaway Inc. (amounts are in million US $ unless otherwise stated, for example per share data)(unaudited)

Berkshire Hathaway 2

Disclaimer:

The writer has created this content bearing in mind that it provides an across-the-board perception of the business activities happening throughout the world to both employed individuals and students. The goal of the author is to help zealous people to develop the awareness that would boost their career growth. Nonetheless, you should always have a logical approach to your investment decisions and shouldn’t take any reckless steps. Practically, you discuss with your consultant to reach a sensible investment decision.


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Josie Patra
Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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