Berkshire Hathaway, Inc. Essay
Background of the Company
The origins of Berkshire Hathaway, Inc. go back to the year 1839. Oliver Chace laid down the foundation for The Valley Falls Company in Valley Falls, Rhode Island, a textile manufacturing company. A merger with the Berkshire Cotton Manufacturing Company occurred in 1929, creating a new company entitled “Berkshire Fine Spinning Associates”. This company then merged with the Hathaway Manufacturing Company, becoming Berkshire Hathaway (BH), in 1955. This merger created the largest surviving textile manufacturer in New England. Buffet Partnership, Ltd. (BPL) began purchasing stock in BH in 1962. By 1964, BPL owned approximately 7% of Berkshire’s shares. Seabury Stanton, the current president of BH, made an oral offer to buy back these shares at $11 ½ ¢ per share. The owner of BPL, Warren Buffet, agreed to the offer. When the written proposal came, however, the offer was for only $11 3/8¢ per share. Buffet was upset at the undercutting of the price per share, so he didn’t follow through on the sale to Stanton and instead began purchasing more BH stock. BPL ended up becoming a majority owner in 1965 and Stanton was relieved of his position. This was the beginning of Berkshire Hathaway, Inc. as we know it today, a conglomerate known for its diversified investments, property and casualty insurance. The company is headquartered in Omaha, Nebraska.
Vision and Mission A search of the corporate website for Berkshire…