Case Study: Berkshire Hathaway

Decent Essays
First of all, he buys most of the securities through his corporation Berkshire Hathaway. So it is not like he logs into his E-trade account and buys up some stocks. Secondly, he does not own the whole company. He owns about 1/5 of it. At some point his family owned up to 50% but through dilution caused by acquisitions with stock and by giving away billions of dollars it deceased to about 23%. So when you hear that he bought Burlington Northern Santa Fe or 3 billion dollars worth of Wells Fargo stock it does not mean he bought them personally. It means Berkshire bought them. The media often says that Buffett buys this or that stock but it is Berkshire that does that. Let's see how he took over Berkshire in the first place.

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