Berkshire Hathaway

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DEFINITION of 'Berkshire Hathaway'

A holding company for a multitude of businesses run by Chairman and CEO Warren Buffett. Berkshire Hathaway is headquartered in Omaha, Nebraska and began as just a group of textile milling plants, but when Buffett became the controlling shareholder in the mid 1960s he began a progressive strategy of diverting cash flows from the core business into other investments.

Insurance subsidiaries tend to represent the largest pieces of Berkshire Hathaway, but the company manages hundreds of diverse businesses all over the world.

INVESTOPEDIA EXPLAINS 'Berkshire Hathaway'

Because of Berkshire Hathaway's long history of operating success and keen stock market investments, the company has grown to be one of the largest in the world in terms of market capitalization. Berkshire stock trades on the New York Stock Exchange in two classes, A shares and B shares. The A shares are noted for their very high prices - in excess of $100,000 per share in 2007.

Early in his career Buffett came across the novel idea to use the "float" from his insurance subsidiaries to invest elsewhere, mainly into focused stock picks that would be held for the long term. Buffett has long eschewed a diversified stock portfolio in favor of a handful of trusted investments that would be overweighted in order to leverage the anticipated return. Over time, his investing prowess became so noted that Berkshire's annual shareholder meetings became a mecca for value investing proponents and the focus of intense media scrutiny.

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  2. What is Warren Buffett's investment history with the Washington Post?

    In 1964, Warren Buffett took over majority ownership of Berkshire Hathaway and turned it into a multinational conglomerate ... Read Full Answer >>
  3. What's the best way to contact Warren Buffett?

    While Warren Buffett is very difficult to contact personally, it is possible to contact Berkshire Hathaway, the textile manufacturing ... Read Full Answer >>
  4. What is Charlie Munger's current role at Berkshire Hathaway, and what is his history ...

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  5. What schools did Warren Buffett attend on his way to getting his science and economics ...

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  6. What are the differences between Warren Buffett and Charlie Munger's business philosophies?

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  7. What was the largest company Warren Buffett ever bought through Berkshire Hathaway?

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  8. What is Warren Buffett's relation to "Supercat" insurance?

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  9. What was the worst investment Warren Buffett made in his career?

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  10. Why doesn't Warren Buffett split Berkshire Hathaway stock?

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  11. What is the difference between Berkshire Hathaway's Class A and Class B shares?

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  12. Given the decline of print media, why did Warren Buffett invest in so many local ...

    Despite a significant decline in print media, Warren Buffett has invested heavily in local newspapers due to his understanding ... Read Full Answer >>
  13. How does the "Buffett Premium" increase Berkshire Hathaway's stock price?

    Though not an official term, the "Buffett premium" theory is an idea that Buffett's name or presence adds value to Berkshire ... Read Full Answer >>
  14. When does Warren Buffett usually release his letter to shareholders?

    Warren Buffett normally releases his annual letter to investors toward the end of February or at the beginning of March. ... Read Full Answer >>
  15. What's the largest charitable donation Warren Buffett ever made?

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  16. Is there any history of insider trading with Warren Buffett or Berkshire Hathaway?

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  17. What is Warren Buffett's annual salary at Berkshire Hathaway?

    Berkshire Hathaway pays Warren Buffett a $100,000 annual salary, technically speaking. His total compensation was around ... Read Full Answer >>
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