Berkshire Hathaway Inc is based in Omaha, Nebraska, United States and manages a number of subsidiary companies. Warren Buffett is the company’s chairman and CEO. Buffett has used the “float” (policyholder’s money which it holds temporarily until claims are paid out) provided by Berkshire Hathaway’s insurance operations to finance his investments.

The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt. Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500

Quick Stats Of Berkshire Hathaway Holdings

Type – Public(NYSE: BRKA),(NYSE: BRKB)
Industry – Conglomerate
Founded – 1839 (as Valley Falls Company)
Founder(s) – Oliver Chace
Headquarters – Omaha, Nebraska, U.S.
Area served – Worldwide
Key people – Warren E. Buffett(Chairman & CEO),Charles T. Munger (Vice Chairman)
Products – Property and casualty insurance, Diversified investments
Revenue – US$ 107.786 billion (2008)
Operating income – US$ 7.574 billion (2008)
Net income – US$ 4.994 billion (2008)
Total assets – US$ 267.399 billion (2008)
Total equity – US$ 109.267 billion (2008)
Employees – 246,000 – Dec 2008
Subsidiaries – GEICO,General Re,NRG,Berkshire Hathaway Assurance
Website - BerkshireHathaway.com

Berkshire now owns a diverse range of businesses including railroads, candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric and gas utilities.

Brief History

Berkshire Hathaway traces its roots to a textile manufacturing company established by Oliver Chace in 1839 as the Valley Falls Company in Valley Falls, Rhode Island. In 1929 the Valley Falls Company merged with the Berkshire Cotton Manufacturing Company established in 1889, in Adams, Massachusetts. The combined company was known as Berkshire Fine Spinning Associates.

In 1955 Berkshire Fine Spinning Associates merged with the Hathaway Manufacturing Company which was founded in 1888 in New Bedford, Massachusetts by Horatio Hathaway. In 1962, Warren Buffett began buying stock in Berkshire Hathaway. After some clashes with the Stanton family, he bought up enough shares to change the management and soon controlled the company.

In the late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance Company (GEICO), which forms the core of its insurance operations today (and is a major source of capital for Berkshire Hathaway’s other investments). In 1985, the last textile operations (Hathaway’s historic core) were shut down.

Current Affairs

Berkshire’s class A shares sold for $99,200 as of December 31, 2009 (2009 -12-31)[update], making them the highest-priced shares on the New York Stock Exchange, in part because they have never had a stock split and never paid a dividend, retaining corporate earnings on its balance sheet in a manner that is impermissible for private investors and mutual funds. Shares closed over $100,000 for the first time on October 23, 2006 and closed at an all-time high of $150,000 on December 13, 2007.

As of 2005, Buffett owned 38% of Berkshire Hathaway. Berkshire’s vice-chairman, Charlie Munger, also holds a stake big enough to make him a billionaire, and early investments in Berkshire by David Gottesman and Franklin Otis Booth resulted in their becoming billionaires as well. Bill Gates’ Cascade Investments LLC is the second largest shareholder of Berkshire and owns more than 5% of class B shares.

Berkshire’s annual shareholders’ meetings, taking place in the Qwest Center in Omaha, Nebraska, are routinely visited by 20,000 people. The 2007 meeting had an attendance of approximately 27,000.

Berkshire’s CEO, Warren Buffett, is respected for his investment prowess and his deep understanding of a wide spectrum of businesses. His annual chairman letters are read and quoted widely. Barron’s Magazine named Berkshire the most respected company in the world in 2007 based on a survey of American money managers.

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