Berkshire Hathaway Inc. is a holding company of American multinational conglomerates headquartered in Omaha, Nebraska, United States. The company fully owns GEICO, Dairy Queen, BNSF Railway, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & amp; Foster, FlightSafety International, Pampered Chef, and NetJets, and also has 38.6% of Pilot Flying J; 26.7% of Kraft Heinz Company, and significant minority interest in American Express (17.6%), Wells Fargo (9.9%), The Coca-Cola Company (9.4%), Bank of America (6 , 8%), and Apple (almost 5%). Since 2016, the company has acquired major holdings in major US carriers, and is currently the largest shareholder in United Airlines and Delta Air Lines, and the top three shareholders on Southwest Airlines and American Airlines. Berkshire Hathaway has averaged annual growth in book value of 19.0% to its shareholders since 1965 (compared to 9.7% of S & P 500 with dividends included for the same period), while using large amounts of capital, and minimal debt.
The company is known for its control and leadership by Warren Buffett, who serves as chairman and chief executive, and Charlie Munger, vice chairman of the company. In the early part of Buffett's career in Berkshire, he focused on long-term investments in public companies, but lately he has bought more companies overall. Berkshire now has a wide range of businesses including confectionery, retail, railroad, home furnishings, encyclopedias, vacuum cleaners, jewelry sales, newspaper publishing, uniform manufacture and distribution, and some regional electric and gas utilities.
According to Forbes Global 2000's list and formula, Berkshire Hathaway is the third largest publicly traded company in the world, the ninth largest conglomerate based on revenue and the largest financial services company by revenue in the world.
Berkshire is currently the seventh largest company in the S & amp; P 500 based on market capitalization, and is famous for having the most expensive share price in history with Class A shares at a cost of around $ 300,000 each. This is due to the fact that there has never been a stock split and Buffett has stated in a 1984 letter to shareholders that he has no intention of doing so.
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History
Berkshire Hathaway traces its roots to a textile manufacturing company founded by Oliver Chace in 1839 as Falls Valley Company in Valley Falls, Rhode Island. Chace previously worked for Samuel Slater, founder of the first successful textile factory in America. Chace founded its first textile factory in 1806. In 1929, the Valley Falls Company merged with the Berkshire Cotton Manufacturing Company, founded in 1889, in Adams, Massachusetts. The combined company was known as Berkshire Fine Spinning Associates.
In 1955, Berkshire Fine Spinning Associates joined the Hathaway Manufacturing Company founded in 1888 in New Bedford, Massachusetts by Horatio Hathaway with the advantage of whaling and Trade of China. Hathaway had succeeded in the first decades, but he suffered during a general decline in the textile industry after World War I. At this time, Hathaway was run by Seabury Stanton, whose investment efforts were rewarded with new profits after the Great Depression. Following the merger, Berkshire Hathaway has 15 factories that employ over 12,000 workers with more than $ 120 million in revenue, and are based in New Bedford. However, seven of those locations closed at the end of the decade, accompanied by massive layoffs.
In 1962, Warren Buffett began buying shares in Berkshire Hathaway after seeing a pattern in the direction of its stock price every time the company closed the plant. Finally, Buffett admits that the textile business is fading and the company's financial situation will not improve. In 1964, Stanton submitted an oral tender offer of $ 11 1 / 2 per share for the company to buy back Buffett shares. Buffett agreed to the deal. A few weeks later, Warren Buffett received a tender offer in writing, but his tender offer was only $ 11 3 / 8 . Buffett later admitted that this lower and lower offer angered him. Instead of selling at a slightly lower price, Buffett decided to buy more shares to take over the company and dismiss Stanton (which he did). However, this puts Buffett in a situation where he is now the majority owner of a failed textile business.
Buffett originally retained Berkshire's mainstream business from textiles, but in 1967, it expanded into the insurance industry and other investments. Berkshire first entered the insurance business with the purchase of the National Indemnity Company. In the late 1970s, Berkshire acquired equity stake in Government Employees Insurance Company (GEICO), which forms the core of its current insurance operations (and is a major source of capital for other investments Berkshire Hathaway). In 1985, the last textile operation (Hathaway's historic core) was closed.
In 2010 Buffett claimed that buying Berkshire Hathaway was the biggest investment mistake he ever made, claiming that he has denied adding to an investment of about $ 200 billion over the next 45 years. Buffett claims that he has invested the money directly in the insurance business rather than buying Berkshire Hathaway (because of what he considers little by individual), the investment will produce several hundred times.
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Company affairs
Berkshire Class A shares sold for $ 294,380.00 as of May 18, 2018, making them the highest priced shares on the New York Stock Exchange, in part because they have never had a stock split and paid only a dividend once since Warren Buffett took over, keeping the firm's earnings on the balance sheet by way of which is not permitted for mutual funds. The stock closed more than $ 100,000 for the first time on October 23, 2006. Despite its size, Berkshire has for many years not been included in the broad stock market index such as S & P 500 due to lack of liquidity in its shares; However, after the division of the Berkshire Class B 50 shares in January 2010, and Berkshire's announcement that it will acquire Burlington Northern Santa Fe Corporation, parent of BNSF Railway, Berkshire replaces BNSF at S & amp; P 500 on February 16, 2010.
Berkshire's annual letters CEO Warren Buffett is widely read and quoted. Barron's is Berkshire's most respected company in the world in 2007 based on a survey of American financial managers.
In 2008, Berkshire invested in shares preferred by Goldman Sachs as part of the investment bank recapitalization. Buffett defended the decision of Lloyd Blankfein as CEO of Goldman Sachs.
On July 13, 2016, Buffett owns 31.7% of Berkshire's outstanding aggregate voting power and 18.0% of the economic value of the shares. Berkshire's vice chairman, Charlie Munger, also has large enough stocks to make him a billionaire, and his initial investment in Berkshire by David Gottesman and Franklin Otis Booth, Jr. generating them into a billionaire as well. Bill Gates' Cascade Investment LLC is Berkshire's second largest shareholder and holds more than 5% of Class B shares.
Berkshire Hathaway never shares Class A shares due to management's desire to attract long-term investors as opposed to short-term speculators. However, Berkshire Hathaway makes a Class B share, with a per-share value originally deposited (by a special management rule) close to 1 / 30 of (now Class A) and / 200 of the voting per share, and after the January 2010 split, at the price of < soup> 1 / 1,500 and 1 / 10.000 -A. Class A shareholders are allowed to convert their shares into Class B, though not vice versa. Buffett was reluctant to make a grade B share, but did so to thwart the creation of a trust unit that would market themselves as Berkshire similar. As Buffett said in a shareholder letter in 1995: "The unit that has just believed that these flies have arisen in the face of these goals, they will be sold by brokers working for the big commissions, will incur other aggravating costs on holders their shares, and will be mass marketed for unsophisticated buyers, tend to be teased by our past records and deceived by Berkshire publicity and I have received in recent years A definite outcome: many investors are doomed to be disappointed. "
The annual Berkshire shareholder meeting, which took place at CenturyLink Center in Omaha, Nebraska, is regularly visited by 20,000 people. The 2007 meeting had a presence of about 27,000. The meetings, dubbed "Woodstock for Capitalists", are considered the largest annual event in Omaha along with the World College Series baseball. Known for their humor and joy, meetings usually begin with films made for Berkshire shareholders. The 2004 film featured Arnold Schwarzenegger in the role of "The Warrenator" who traveled all the time to stop Buffett and Munger's efforts to save the world from a "mega" company formed by Microsoft-Starbucks-Wal-Mart. Schwarzenegger was then shown arguing in the gym with Buffett on Proposition 13. The 2006 film depicts actresses Jamie Lee Curtis and Nicollette Sheridan lusting after Munger. The meeting, scheduled for six hours, is an opportunity for investors to ask Buffett questions.
The salary for the CEO is $ 100,000 per year with no stock options, which is the lowest salary for CEOs of major corporations in the United States.
Government
Current members of Berkshire Hathaway's board of directors are Warren Buffett (Chair), Charlie Munger (Vice Chair), Walter Scott, Jr., Thomas S. Murphy, Howard Graham Buffett (son of Warren), Ronald Olson, Charlotte Guyman, David Gottesman, Bill Gates, Steve Burke, Susan Decker, Meryl Witmer, Ajit Jain, and Greg Abel.
Succession plan
In May 2010, Buffett, months away from his 80th birthday, said he would succeed at Berkshire Hathaway by a team of CEOs and three or four investment managers; each of the latter will be responsible for "significant portion of Berkshire's investment portfolio". Five months later, Berkshire announced that Todd Combs, manager of hedge fund Castle Point Capital, would join them as an investment manager. On September 12, 2011, Berkshire Hathaway announced that 50-year-old Ted Weschler, founder of Peninsula Capital Advisors, will join Berkshire in early 2012 as the second investment manager.
In Berkshire Hathaway's annual shareholder letter dated February 25, 2012, Buffett said that his successor as CEO has been selected internally but not publicly named. While the intent of this message is to cultivate a belief in the leadership of "Berkshire without-Buffett", critics have noted that the strategy of choosing a successor without a concrete exit strategy for the sitting CEO often leaves the organization with fewer long-term options. , while doing little to calm shareholder fears.
In June 2014, corporate cash and cash equivalents rose past $ 50 billion, first completing a quarter above that level since Buffett became chairman and chief executive officer. By the end of 2017, company cash and cash equivalent holdings increased to $ 116 billion.
On January 10, 2018, Berkshire Hathaway appointed Ajit Jain and Greg Abel as Vice Chairs. Abel will become vice chairman for non-life business operations, and Jain will become vice chairman of insurance operations.
Business and investment
Insurance group
Insurance and reinsurance business activities are conducted through approximately 70 domestic and foreign insurance companies. The Berkshire insurance business provides insurance and reinsurance of property and risk risks especially in the United States. In addition, as a result of the General Re Acquisition in December 1998, the Berkshire insurance business also includes life, accident, and health reinsurance, as well as property and casualty reinsurance on an international basis. The Berkshire insurance company maintains capital strength at a very high level. This power distinguishes Berkshire insurance companies from their competitors. Collectively, the aggregate surplus of Berkshire insurance companies in the US is approximately $ 48 billion as of December 31, 2004. All of Berkshire's major insurance subsidiaries are rated AAA by Standard & amp; Poor's Corporation, the highest Financial Rating Rank awarded by Standard & amp; Poor's, and rated A (superior) by A. M. Best regarding their financial condition and operating performance.
- GEICO - Berkshire acquired GEICO in January 1996. GEICO is headquartered in Chevy Chase, Maryland, and its major insurance subsidiaries include: Government Employees Insurance Companies, GEICO General Insurance Companies, Indemnity GEICO Companies and GEICO Victims Companies. Over the past five years, these companies have offered private passenger car insurance to individuals in 50 states and the District of Columbia. GEICO markets its policies primarily through direct response methods in which applications for insurance are submitted directly to companies via the Internet or by telephone. Gen Re - Berkshire acquired General Re in December 1998. General Re held a 91% shareholding in Cologne Re on December 31, 2004. The General Re subsidiary currently conducts global reinsurance business in approximately 72 cities and provides reinsurance coverage at the whole world. General Re operates the following reinsurance businesses: property/casualties in North America, international property/casualties, principally comprising Cologne Re and Faraday operations, and life/health reinsurance. Reinsurance General Re's operations are primarily based in Stamford, Connecticut, and Cologne, Germany. General Re is one of the largest reinsurers in the world based on net written premium and capital.
- NRG (Nederlandse Reassurantie Groep) - Berkshire acquired NRG, the Dutch reinsurance company, from ING Group in December 2007.
- Berkshire Hathaway Assurance - Berkshire invents government bond insurers to secure municipal and state government bonds. These types of bonds are issued by the local government to finance public works projects such as schools, hospitals, roads, and sewer systems. Few companies are able to compete in this field.
On June 8, 2017, it was announced that Berkshire Hathaway has established a California insurance regulator, allowing Applied Underwriter units to sell a revised version of a "controversial" compensation insurance policy for workers in the state.
Utilities and energy groups
Berkshire currently holds 89.8% of Berkshire Hathaway Energy. At the time of purchase, Berkshire's voting interest was limited to 10% of the company's shares, but this restriction ended when the Public Utility Holding Utility Act of 1935 was lifted in 2005. Berkshire Hathaway Energy's main subsidiary is Northern Powergrid, operating in the UK.
Until the name change on April 30, 2014, Berkshire Hathaway Energy is known as MidAmerican Energy Holdings Co.
On July 7, 2017, the company announced it will acquire Energy Future Holdings.
Manufacturing, services and retail
Clothing
Berkshire clothing business includes manufacturers and distributors of various clothing and footwear. Businesses involved in the manufacture and distribution of clothing include Union Underwear Corp. - Fruit of the Loom, Garan, Fechheimer Brothers, and Russell Corporation. Berkshire footwear business including H.H. Brown Shoe Group, Acme Boots, Brooks Sports and Justin Brands. Justin Brands consists of Chippewa Boots, Justin Boots, Justin Original Workboots, Nocona Boots, and Tony Old Boots. Berkshire purchased Fruit of the Loom on April 29, 2002 for $ 835 million in cash. Fruit of the Loom, headquartered in Bowling Green, Kentucky, is a vertically integrated underwear manufacturer. Berkshire acquired Russell Corporation on August 2, 2006 for $ 600 million or $ 18.00 per share.
Build product
In August 2000, Berkshire entered the building products business with the acquisition of Acme Building Brands. Acme, headquartered in Fort Worth, Texas, produces and distributes clay bricks (Bata Acme), concrete blocks (Featherlite) and chop limestone (Texas Quarries). The company expanded its building product business in December 2000, when it acquired Benjamin Moore & Co. from Montvale, New Jersey. Moore formulates, manufactures and sells architectural coatings available primarily in the United States and Canada.
In 2001, Berkshire acquired three additional building product companies. In February, he purchased Johns Manville which was founded in 1858 and manufactures wool fiber insulation products for commercial homes and buildings, as well as pipes, conduits and insulation equipment. In July, Berkshire acquired a 90% interest in MiTek Inc., which manufactures engineering, engineering and engineering connector products, and manufacturing machinery for the truss fabrication segment of the building component industry and is headquartered in Chesterfield, Missouri. Finally in 2001, Berkshire acquired 87 percent of Dalton, Georgia-based Shaw Industries, Inc. Shaw is the world's largest carpet manufacturer based on revenue and volume production and design and produces over 3,000 styles of tufted and woven carpets and laminated flooring for residential and commercial use under approximately 30 brand names and trades and under certain private labels. In 2002, Berkshire Acquired the remaining 12.7 percent of Shaw.
On August 7, 2003, Berkshire acquired Clayton Homes, Inc. Clayton, headquartered near Knoxville, Tennessee, is a vertically integrated manufacturing housing company. By the end of 2004, Clayton operated 32 plants in 12 states. Clayton homes are marketed in 48 countries through a network of 1,540 retailers, 391 of which are company-owned sales centers. On May 1, 2008, Mitek acquired Hohmann & amp; Barnard, an anchor manufacturer and a reinforcement system for masonry and on October 3 of that year, Mitek acquired Lok-Lok Block. from Toronto, Canada. On April 23, 2010, Mitek acquired Dur-O-Wal assets from Dayton Superior.
Flight service
In 1996, Berkshire acquired FlightSafety International Inc. (or FSI), founded in 1951 by Albert Lee Ueltschi. The FSI headquarters is located at LaGuardia Airport in Flushing, New York. It supplies high-tech pilot training to aircraft operators in the military, government, corporate, and regional or flying mainline. FlightSafety is the world's leading professional provider of flight training services. According to its website, the company has 1,800 instructors and offers more than 4,000 individual courses for 135 aircraft types, using more than 320 flight simulators to serve customers from 167 countries.
Berkshire acquired NetJets Inc. in 1998. NetJets is the world's leading provider of fractional ownership programs for public aircraft. In 1986, NetJets created fractional ownership of the aircraft concept and introduced the NetJets program in the United States with one type of aircraft. In 2004, NetJets program operates 15 types of aircraft with a fleet size of nearly 650.
Retail
Home furnishings businesses are Nebraska Furniture Mart, RC Willey Home Furnishings, Star Furniture Company, and Jordan's Furniture, Inc. CORT Business Services Corporation was acquired in 2000 by 80.1% owned subsidiary Berkshire and is a leading national provider of rental furniture, accessories and related services in the "rental-to-lease" segment of the furniture rental industry.
In May 2000, Berkshire purchased Ben Bridge Jeweler, a chain of jewelry stores founded in 1912 with locations primarily in the western United States. It joins the acquisition of other Berkshire jewelers, Helzberg Diamonds. Helzberg is a chain of jewelry stores based in Kansas City that began in 1915 and became part of Berkshire in 1995.
In 2002, Berkshire acquired The Pampered Chef, Ltd., the largest direct seller of kitchen utensils in the United States. Products are researched, designed and tested by The Pampered Chef, and are manufactured by third party suppliers. From the Addison, Illinois headquarters, The Pampered Chef leverages a network of over 65,000 independent sales representatives to sell its products through home-based party demonstrations, especially in the United States.
See's Candies produces boxy chocolates and other confectionery products in two large kitchens in California. Income View is very seasonal with about 50% of total annual revenue generated in November and December.
Dairy Queen, based in Edina, Minnesota, serves a system of about 6,000 stores operating under the names Dairy Queen, Orange Julius, and Karmelkorn. The shops offer a variety of dairy desserts, drinks, fast food, mixed fruit drinks, popcorn and other snacks.
In November 2012, Berkshire announced that it would acquire the Oriental Trading Company, a direct marketing company for new goods, small toys, and party items.
On October 3, 2017 it was announced that Berkshire Hathaway will acquire 38.6% of the J-fly Fly pilot stop chain, with plans to increase its holdings to 80% by 2023. The Haslam and FJ Management will retain ownership of ownership until then, where the Haslams will retain the remaining 20% ​​and Management FJ will withdraw altogether. The Haslam family will maintain control of the company's day-to-day operations.
Media
In 1977, Berkshire Hathaway purchased the Buffalo Evening News and continued the publication of the Sunday edition of a paper that ceased in 1914. After the Buffalo Courier-Express morning paper stopped operating in 1982, newspapers began printing morning and afternoon editions, currently only print the morning edition. In 2006, the company purchased the Business Wire , the US press release agent.
The company started a subsidiary of BH Media Group with the purchase of Omaha World-Herald in December 2011, which included six other daily newspapers and several weekly throughout Nebraska and southwestern Iowa. In June 2012, Berkshire purchased 63 newspapers from the General Media, including the Richmond Times-Dispatch and Winston-Salem Journal, for $ 142 million in cash.
In 2012, Berkshire buys the Texas Daily at Bryan-College Station and Waco Tribune-Herald . In 2013, the company purchased Tulsa World, Greensboro, North Carolina-based News & amp; Record , Virginia Roanoke Times , and Hit Atlantic City . In March 2013, BH Media has 28 daily newspapers and 42 non-daily newspapers.
On March 12, 2014, it was announced that Graham Holdings Company would terminate its Miami television station, the ABC WPLG affiliate to BH Media in cash and stock transactions.
Real Estate
Berkshire Hathaway Energy HomeServices of America (see full list of companies) is a residential real estate brokerage firm based in Minneapolis, Minnesota and established in 1998. HomeServices has operations in 28 states and over 22,000 sales associates. In addition to brokerage services, this real estate company provides mortgage loans, title and closing services, home insurance, property and accident insurance and other related services. By the end of 2013 Berkshire Hathaway will enter the real estate brokerage sector under the name HomeServices of America.
At the end of June 2017, Oracle of Omaha indirectly earned $ 400 million from Toronto-based general company shares as it provides a lifeline to a beaver mortgage lender, Home Capital Group Inc.
Also in June 2017, Berkshire's investment of $ 377 million and a 10 percent purchase in Store Capital made it the third largest investor of the company, after Vanguard Group and Fidelity Investments. Scottsdale-based Capital Stores is the belief in real estate investing, holding more than 1,700 properties in 48 countries.
Other Berkshire investments related to real estate include HomeServices of America, the second largest residential real estate broker in the US, and Clayton Homes, which makes manufacturing housing.
Other non-insurance
In 2002, Berkshire acquired Albecca Inc. Albecca is headquartered in Norcross, Georgia, and mainly runs the business under the name Larson-Juhl. Albecca designs, manufactures and distributes special framing products, including wood and metal molds, matboards, foamboards, glass, appliances and other framing equipment. Berkshire acquired CTB International Corp. in 2002. CTB, headquartered in Milford, Indiana, is a system designer, manufacturer and marketer used in the grain industry and in the production of poultry, pigs and eggs. Products are manufactured in the United States and Europe and are sold primarily through a global network of dealers and independent distributors, with peak sales occurring in the second and third quarters.
Berkshire acquired McLane Company, Inc. in May 2003 from Walmart, which brought other subsidiaries such as Professional Datasolutions, Inc. and Salado Sales, among others. McLane provides wholesale distribution and logistics services across 50 states and internationals in Brazil to customers that include discount retailers, department stores, fast food restaurants, drugstores and cinema complexes. Scott Fetzer Companies-The Scott Fetzer Companies is a group of 21 companies that produce and distribute a wide range of products for use in residential, industrial and institutional. The three most significant of these businesses are Kirby home cleaning systems, Wayne Water Systems and Campbell Hausfeld products. Scott Fetzer also produces Ginsu knives.
On March 30, 2007, Berkshire Hathaway announced TTI, Inc. to become part of the Berkshire Hathaway Group. Headquartered in Fort Worth, Texas, TTI, Inc. is the largest specialist distributor of passive, interconnect and electromechanical components. TTI's extensive product lines include: resistors, capacitors, connectors, potentiometers, trimmers, magnetic protection components and circuits, wires and cables, identification products, application tools and electromechanical devices.
On December 25, 2007, Berkshire Hathaway acquired Marmon Group. Previously this was a private conglomerate owned by the Pritzker family for over fifty years, owning and operating various manufacturing companies that produce rail tank cars, shopping carts, pipelines, metal fasteners, cables and water treatment products used in construction housing.
On October 2, 2014, Berkshire Hathaway Automotive is a subsidiary of autodealership made through the acquisition of Van Tuyl Group, the largest automotive dealer in the country and independently owned up to that date and the fifth largest with 81 dealerships and $ 8 billion in revenue
On November 14, 2014, Berkshire Hathaway announced that it will acquire Duracell from Procter & amp; Gambling for $ 4.7 billion in deal of all shares.
Financial and financial products
Berkshire acquired Clayton Homes, modular home maker, storage trailer, chassis, intermodal piggyback trailer, and domestic container.
Clayton's financial business, (loans for homeowners produced), earned $ 206 million down from $ 526 million in 2007. Loss of credit remains 3.6% up from 2.9%.
Investment
In addition to owning the company directly, Berkshire maintains a portfolio of equity and concentrated investments historically managed by Warren Buffett. Since 2010, Todd Combs and Ted Weschler have also worked with Buffett in managing investments. In a 2016 letter to shareholders, Warren revealed that each of them independently manages more than $ 10 billion on behalf of Berkshire. Buffett has spoken very well in public interviews and in a 2015 letter to shareholders he describes hiring them both as "one of my best moves".
As of March 2017, 65% of Berkshire's equity securities are concentrated in five companies: American Express Company ($ 12.0 billion), Apple Inc. ($ 19.2 billion), The Coca-Cola Company ($ 17.0 billion), International Business Machines Corporation ("IBM") ($ 11.2 billion), and Wells Fargo & Company ($ 27.8 billion). After the sale of IBM shares in February 2018, on May 4, 2018, Buffett announced that Berkshire had sold its interest in IBM, and bought more from Apple.
At the height of the financial crisis in September 2008, Berkshire invested $ 5 billion in preferred stock at Goldman Sachs to provide it with funding sources when capital markets became constrained. Preferred shares yield an annual interest rate of 10% resulting in Berkshire $ 500 million in interest income per annum. Berkshire also received a warrant to buy 43.5 million shares at a strike price of $ 115 per share, which can be executed at any time for a period of five years. Goldman retained the right to repurchase preferred stock and in March 2011 exercised this right to pay $ 5.5 billion to Berkshire (preferred stock can only be repurchased at a 10% premium). Warrants have been executed and Berkshire holds 3% of Goldman Sachs share capital. Gains on preferred stocks are estimated at $ 1.8 billion and running the warrants have generated more than $ 2 billion in profits, although Berkshire's continuous shareholding in Goldman Sachs means all profits can not be quantified.
On August 26, 2011, Berkshire Hathaway bought $ 5 billion in preferred stock at Bank of America. This investment has an annual interest cost of 6%, resulting in Berkshire $ 300 million in annual interest. Along with the preferred stock investment, Berkshire received warrants allowing Berkshire to buy 700 million common shares at $ 7.14 per share at any time before September 2, 2021. Based on the stock price in June 2017, this position has generated more than $ 10 billion profit excluding annual interest earned from preferred stock.
Vandergriff Automotive, Honda's best-selling dealer in the Dallas Metroplex, contributes $ 100 million in revenue each year. In 2003, Pepsi paid Berkshire $ 10 million to insure against a Pepsi-held contest that has a potential $ 1 billion prize. The prize has a very small chance of being won and won by no one.
In 2006, Berkshire Hathaway Inc. acquired Russell Corporation for $ 600 million, even acquired most of the shares and brands in many sports leagues - including the official NBA Spalding basketball, BIKE Athletic Company protection, AAI (American Athletic), gymnastics tables, bars, rings, horses or softballs and accessories Dudley.
In 2008, Berkshire bought preferred stock at Wrigley, Goldman Sachs, and GE for $ 14.5 billion.
On November 3, 2009, Berkshire Hathaway announced that, using $ 26 billion in stocks and cash, it would earn the remaining 77.4 percent of Burlington Northern Santa Fe Corporation, the parent of the BNSF Railway, which it does not yet own. This is the largest acquisition to date in Berkshire's history.
On March 14, 2011, Berkshire Hathaway announced it would acquire Lubrizol Corporation for $ 9 billion in cash, a deal described as one of Berkshire Hathaway's greatest deals ever.
On March 25, 2011, Berkshire Hathaway made its first foray into the Indian insurance sector with its subsidiary, BerkshireInsurance.com, in the presence of Warren Buffett himself.
On February 14, 2013, Berkshire Hathaway Inc. and 3G Capital announced plans to buy H.J. Heinz Co. worth $ 72.50 per share, or $ 28 billion including debt. The Company became the majority owner of Heinz on June 18, 2015, after executing a warrant for 46,195,652 common shares at a total price of $ 461,956.52 increasing its ownership to 52.5%.
Berkshire owns 1.74 million shares of Gannett. The company also holds part of the newspaper publisher Lee Enterprises after buying a portion of Lee's debt after filing for his bankruptcy.
On August 10, 2015, Berkshire Hathaway Inc. board of directors and Precision Castparts Corp. unanimously approved a definitive agreement for Berkshire Hathaway to earn, for $ 235 per share in cash, all outstanding PCC shares.
Invest in Apple Inc.
In May 2016, it was revealed in a regulatory filing that Berkshire had bought shares in Apple Inc. The starting position is for 9.8 million shares (0.2% of Apple) worth $ 1 billion. By the end of June 2016, this share has increased to 15.2 million shares (0.3% of Apple). Berkshire then resumed buying Apple shares again between September and December. As of December 31, 2016, Berkshire has built up 57.4 million shares (1.1% of Apple) with an estimated average acquisition cost of $ 110 per share. Aggressive stock acquisition continues and on March 31, 2017, Berkshire has raised a stake of 129 million shares (2.5% of Apple). In its 2017 annual report, Berkshire Hathaway revealed its total position on December 31, 2017 to 166 million shares (3.3% of Apple).
In media reports, Buffett said that Apple has developed an ecosystem and brand loyalty level that provides it with a competitive trench, and that consumers seem to have a degree of price insensitivity when it comes to the iPhone.
Invest in US airlines
In 2016, Berkshire surprised investors by making large equity investments in major US companies. Buffett previously described the airline as a "death trap for investors". Buffett had invested in US Airways in 1989 which, although he was selling for profit, almost lost Berkshire a huge amount of money. In 2017, Berkshire is currently the largest shareholder on United Airlines and Delta Air Lines and the top 3 shareholders on Southwest Airlines and American Airlines. Buffett himself has described this as a "call in the industry" rather than an option in an individual company. American Airline CEO Doug Parker is said to have won Ted Weschler on the grounds that the aviation industry has consolidated sufficient and rational supplies so long-term profitability can be achieved in industries that have historically suffered aggregate losses.
Previous Investment
Berkshire previously held a large stake in Tesco Plc, a grocery store retailer in the UK. Berkshire made its first investment in Tesco in 2006 and in 2012 raised this stake to more than 5% of the company with an investment cost of $ 2.3 billion. Buffett sold about 30% of this stake in 2013 when he "slightly worsened the company's management at the time" and realized a profit of $ 43 million. When Tesco's problems escalated until 2014, Berkshire sold all remaining shares with Buffett telling shareholders that the delay in selling the stock was expensive. Berkshire made a $ 444 million after-tax loss on Tesco's investment.
Subsidiaries and equity holdings
Assets
See also
- List of Berkshire Hathaway publications
Note
External links
- Official website
Source of the article : Wikipedia
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