Warren Buffett shares an unfortunate story that reflects Berkshire Hathaway's incredible scope

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Warren Buffettโ€™s Berkshire Hathaway (BRK-A, BRK-B) is massive in both scope and scale. The holding company, worth $559 billion, owns businesses ranging from insurance to furniture to energy utilities to chocolate.

In his annual letter to Berkshire Hathaway shareholders, Buffett shared an unfortunate story that โ€œunderscores the wide scope of Berkshireโ€™s operations.โ€œ

โ€œSince 2011, we have owned Lubrizol, an Ohio-based company that produces and markets oil additives throughout the world. On September 26, 2019, a fire originating at a small next-door operation spread to a large French plant owned by Lubrizol,โ€ he said.

โ€œThe result was significant property damage and a major disruption in Lubrizolโ€™s business,โ€ he continued. โ€œEven so, both the companyโ€™s property loss and business-interruption loss will be mitigated by substantial insurance recoveries that Lubrizol will receive.โ€

Thank goodness for insurance. Otherwise, Lubrizol wouldโ€™ve been in much worse shape.

Unfortunately, whatโ€™s good for Lubrizol is coming at the cost of another one of Berkshireโ€™s businesses.

Dark smoke from a large fire that broke out at the factory of Lubrizol spreads over the town, in Rouen, France, September 26, 2019. REUTERS/Pascal Rossignol
Dark smoke from a large fire that broke out at the factory of Lubrizol spreads over the town, in Rouen, France, September 26, 2019. REUTERS/Pascal Rossignol

โ€œBut, as the late Paul Harvey was given to saying in his famed radio broadcasts, โ€˜Hereโ€™s the rest of the story.โ€™ One of the largest insurers of Lubrizol was a company owned by ... uh, Berkshire.โ€

Berkshireโ€™s businesses appear to be tripping over each other.

โ€œIn Matthew 6:3, the Bible instructs us to โ€˜Let not the left hand know what the right hand doeth.โ€™ Your chairman has clearly behaved as ordered,โ€ Buffett said.

Below is a list of Berkshireโ€™s many portfolio companies (via Berkshire Hathaway's annual letter)

Berkshire Hathaway companies.
Berkshire Hathaway companies.
Mark your calendars!
Mark your calendars!

โ€”

Sam Ro is managing editor at Yahoo Finance. Follow him on Twitter: @SamRo

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