Berkshire Hathaway
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Berkshire Hathaway Template:Nyse is a company headquartered in Omaha, Nebraska, USA, that oversees and manages a number of subsidiary companies.
Berkshire Affiliates include Borsheim's Fine Jewelry, an enormous Omaha jewelry store; Nebraska Furniture Mart; The Pampered Chef; See's Candies; clothing manufacturer Fruit of the Loom; and several insurance companies such as GEICO and General Re. In 1998 Berkshire Hathaway purchased Dairy Queen.
Formerly a textile company, it was taken over by Warren Buffett in the 1960s, but its textile venture did not succeed.
However, many of the investments Buffett made were spectacularly successful, especially in the 1980s and 1990s. Although Buffett retains a controlling stake in the company, it has thousands of shareholders, and these investors often are very interested and involved in the running of the business. Berkshire Hathaway holds yearly meetings that are heavily attended by these investors, many of them families. It has been called the "Capitalist Woodstock".
Berkshire Hathaway is notable in that it never allows its shares to split. Each share is thus worth tens of thousands of dollars. However, Berkshire Hathaway has created a Class B stock, with a price set to 1/30 of that of the original shares (now Class A) but 1/200 of the per-share voting rights. Holders of Class A stock are allowed to convert their stock to Class B, though not vice versa.
Buffett was reluctant to create the Class B shares, but did so to thwart the creation of unit trusts that would have marketed themselves as Berkshire look-alikes. As Buffett said in his 1995 shareholder letter:
"The unit trusts that have recently surfaced fly in the face of these goals. They would be sold by brokers working for big commissions, would impose other burdensome costs on their shareholders, and would be marketed en masse to unsophisticated buyers, apt to be seduced by our past record and beguiled by the publicity Berkshire and I have received in recent years. The sure outcome: a multitude of investors destined to be disappointed."
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Quick facts
- Common stock investments market value 12/31/04: $37,717 million
Consolidated financial statements
- Total shareholders’ equity December 31, 2004: $85,900 million
Subsidiaries
A complete list of subsidiaries with links can be viewed at this website (http://www.berkshirehathaway.com/subs/sublinks.html).
- Borsheim's Fine Jewelry
- Dairy Queen
- Fruit of the Loom
- Nebraska Furniture Mart
- The Pampered Chef
- See's Candies
- World Book
- NetJets
Subsidiaries related to insurance and finance
- General Re
- Geico
- Kansas Bankers Surety Insurance Company
- National Indemnity Company
- Wesco Financial Corporation
Companies with a "beneficial owner" relationship
This includes some of the companies where a Berkshire Hathaway stake is 5% or more of the outstanding stock, as reported in the last proxy statement filed with the Securities and Exchange Commission.
- The Gillette Company (9.50%)
- The Washington Post Company (18.10%)
- Coca-Cola (8.30%)
- American Express (12.15%)
External links
Company websites
- Official website (http://www.berkshirehathaway.com)
Data
- Yahoo! - Berkshire Hathaway Inc. Company Profile (http://biz.yahoo.com/ic/10/10206.html)
- Read Warren Buffett's latest insights and stock ideas at www.vinvesting.com (http://www.vinvesting.com)
- Warren Buffett Stock Picks --GuruFocus.com (http://www.gurufocus.com/StockBuy.php?action=buy&GuruName=Warren%20Buffett) - Source for Warren Buffett Stock Picks
Articles
- Fool.com: Notes From the Berkshire Hathaway Annual Meeting (Boring Portfolio) May 1, 2000 (http://www.fool.com/boringport/2000/boringport000501.htm)de:Berkshire Hathaway