Warren Buffet has arguably become a household name due to his massive success in the business world, earning him a spot on the list of the top wealthiest people on earth. However, he attributes his success to his shrewd business sense and his company Berkshire Hathaway which is one of the most successful firms in the U.S. and also one of the biggest publicly traded firms in the world.
Berkshire Hathaway is a holding company that was founded in 1839 starting out as a textile company, meaning it has been around for almost two centuries and existed even long before Buffett. It started giving attention to corporate performance around 1964 while still in the textiles industry but it started diversifying into other areas and eventually became one of the biggest holding company in America.
Buffett started investing in the company in the 1960s and quickly became a controlling shareholder. He eventually became the CEO of Berkshire Hathaway and is considered one of the people that have played a big part in the success of the firm. The company currently has a market cap of more than $478 billion.
Berkshire Hathaway companies
Berkshire Hathaway has achieved great success through strategic investments in different industries through its holdings. It owns firms such as BNSF Railway, Dairy Queen, GEICOHelzberg Diamonds, Fruit of the Loom, Long & Foster, NetJets, Pampered Chef, and FlightSafety International.
The holding firm also has stake in other major companies including Apple, Kraft Heinz Company, American Express and The Coca-Cola Company among others. It also holds 100 percent stake in Applied Underwriters, Ben Bridge Jeweler, Benjamin Moore & Co., and Berkshire Hathaway Assurance among others.
Berkshire Hathaway has two classes of shares that are traded on the New York Stock Exchange. Its class A shares are steeply priced above $290,000 per share while the class B shares are currently valued above $193. The value of the shares plus its acquisitions and investments worth billions plus its net worth of more than $480 billion highlights the massive success of the company. Buffett is currently the majority shareholder at the company with about 36.8 percent ownership and it has also employed more than 377,000 in different industries.
The future of the company
So far Berkshire Hathaway has established itself as one of the big players in the investment industry and its strategic investments are expected to help the firm to remain profitable in the future. Buffett pointed out in one of his statements that the company needs to increase its earnings, especially in its non-insurance group. To achieve this it needs to acquire one or more major firms.
The announcement by Buffett highlights one of the directions that the company is planning to pursue in the future. Such investments will allow it to maintain a strong portfolio while also allowing it to venture into newer technologies. Fortunately, the company has a strong team of experienced analysts that have previously been praised by Buffett for their prowess when it comes to selecting ideal investment options.