What is Berkshire Hathaway?
Berkshire Hathaway is a multinational conglomerate holding company that is based in Omaha, Nebraska. The company was founded in 1839 as a textile manufacturing company, but it has since evolved into one of the largest and most successful companies in the world.
History of Berkshire Hathaway
Berkshire Hathaway was founded in 1839 by Oliver Chace as the Valley Falls Company, which was a textile manufacturing company based in Rhode Island. The company experienced significant success in the textile industry in the late 1800s and early 1900s, but by the 1960s, it had fallen on hard times.
In 1962, Warren Buffett, a young investor from Omaha, Nebraska, began purchasing shares of Berkshire Hathaway. He saw potential in the struggling textile company and believed that he could turn it around. Buffett soon became the company's largest shareholder and took control of the company.
Over the next few decades, Buffett transformed Berkshire Hathaway from a struggling textile company into a multinational conglomerate holding company with a diverse portfolio of investments.
Investments of Berkshire Hathaway
One of the keys to Berkshire Hathaway's success has been its investments. Buffett is known for his value investing philosophy, which involves buying undervalued companies with strong fundamentals and holding onto them for the long term. Here are some of Berkshire Hathaway's major investments:
Apple Inc.: Berkshire Hathaway has a significant stake in Apple, which is one of the largest and most successful technology companies in the world. As of September 2021, Berkshire Hathaway owned over 887 million shares of Apple, which were worth over $140 billion.
Coca-Cola Company: Buffett is a big fan of Coca-Cola and has been a shareholder of the company for many years. Berkshire Hathaway owns a significant stake in Coca-Cola, which is one of the largest beverage companies in the world.
American Express Company: Buffett has been a shareholder of American Express for many years and has praised the company for its strong brand and customer loyalty. Berkshire Hathaway owns a significant stake in American Express, which is one of the largest financial services companies in the world.
Berkshire Hathaway Energy Company: Berkshire Hathaway also has a significant stake in its own energy company, which is a subsidiary of the holding company. The company owns a diverse portfolio of energy assets, including natural gas pipelines, wind farms, and solar power plants.
Burlington Northern Santa Fe Corporation: In 2009, Berkshire Hathaway acquired the Burlington Northern Santa Fe Corporation, which is one of the largest railroad companies in the United States. The acquisition gave Berkshire Hathaway a significant stake in the transportation industry.
Connections to Warren Buffett
Warren Buffett is one of the most successful investors in history, and his connection to Berkshire Hathaway is a major reason for the company's success. Buffett has been the CEO and chairman of Berkshire Hathaway since 1970 and has played a significant role in the company's investment strategy and overall direction.
Buffett is known for his conservative and patient investment style, which has helped Berkshire Hathaway achieve significant success over the years. He is also known for his philanthropy, and has pledged to give away the majority of his wealth to charitable causes.
Berkshire Hathaway is a multinational conglomerate holding company that has achieved significant success under the leadership of Warren Buffett. The company has a diverse portfolio of investments, including major holdings in companies such as Apple, Coca-Cola, and American Express. Buffett's conservative and patient investment style has played a significant role in the company's success, and his philanthropy has made him one of the most respected and admired investors in the world.