Berkshire Hathaway Essay

Berkshire Hathaway is an American multinational conglomerate holding company that is based in Omaha, Nebraska. Basically, this is a parent company and owns a variety of companies involved in different businesses. They are led by the wonderful Warren Buffet and Charlie Munger. This company either owns a whole company or owns a significant number of shares. For example, They wholly own GEICO, Dairy Queen, BNSF Railway, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, Flight Safety International, Pampered Chef, and NetJets. They own 38.6% of Pilot Flying, 26.7% of the Kraft Heinz Company, 17.16% of American Express, 9.4% of the Coca-Cola Company 9.4%, 9.9% Wells Fargo, 3.3% and Apple. Fairly recent, they have acquired large holding for some major airlines like United Airlines, Delta Air Lines, Southwest Airlines and American Airlines. All these investments have paid off. Berkshire Hathaway has averaged an annual growth in book value of 19.0% to its shareholders since 1965. What that is how quickly its building its assets base. Its assets minus liabilities. Every year, Berkshire Hathaway is buying more assets while getting rid of their liabilities. 19% is pretty good compare to many other companies. …show more content…
In 1962, the great Warren Buffet bought stock at this company. At the time, the company was going downhill. The current CEO at the time offered to buy Warren’s stock. Instead of selling it, he bought more until he was a majority shareholder. He fired the CEO and took control. In 1967, Warren took control of a failing textile business. However, Warren took the company into another direction. He expanded the company into insurance with the purchase of National Indemnity Company. In 1970, Berkshire bought GEICO. In 1985, the textile business was no more. They just focused on their other companies that they