Berkshire Hathaway - what is the company, what it does, owner, stocks, course
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Berkshire Hathaway - What is the company whose shares are the most expensive in the world?

13.11.2019
Posted by: Ganesa

Berkshire Hathaway

Berkshire Hathaway - what is this company and why is it considered one of the most successful in the world? I’ll talk about this today, and besides that, I’ll tell you how to buy shares of the holding and how much they will cost minimum.

I’ll pay special attention to the structure in which you will find many familiar brands. Do you want to know an interesting history of VN purchase, and how much did Buffett pay to the former owner, and what did you do next? This and much more is in this article, but at the beginning about the key facts of the company.

Berkshire Hathaway

If you heard name Warren Buffett, then, this company is familiar to you. If you open Wikipedia on the brand page, you can see - this is a financial holding. An investment company that manages many companies in various fields and even countries. Today, owning VN shares is not only profitable, but also prestigious! If we talk about what assets Berkshire Hathaway manages, and wondering what kind of company it is, you immediately need to list those companies that it completely owns. It:

  • GEICO;
  • Dairy Queen;
  • Duracell
  • BNSF Railway;
  • Lubrizol;
  • Fruit of the Loom;
  • Diamonds Helzberg;
  • Long & Foster;
  • FlightSafety International;
  • Pampered Chef and NetJets.

At the same time, the holding also owns other assets. This is 38,6% stake in Pilot Flying J, 26,8% of Kraft Heinz, and American Express - 17,15%. Not without the Coca-Cola Company - 9,4%, Wells Fargo 9,9%, Bank of America - 6,8%.

Bh company

 
World giants IBM and Apple are also part of the holding with 6,9% and 5%, respectively.

BH History

For the first time they started talking about Berkshire Hathaway back in 1839, and today the official website says that the holding has something to be proud of: it is included in the Standard & Poor's 500. The position was consolidated in 2015, when BNSF shares were bought. The first name of the company "Wellie Falls". Founder Oliver Chase. The initial merger dates back to 1929, when the company formed a partnership with the Berkshire Cotton Manufacturing Company.

 
1955 year has become important for the holding. Berkshire Hathaway expanded its assets by joining Hathaway's industrial holding, thereby gaining the familiar name. It was 15 factories with an annual turnover of 120 million $.

Owner and richest man in America

Example the most successful investor Warren Buffett proves: you need to buy securities. That is exactly what he did in 1960. Practically 2 years it took a billionaire to get a controlling stake. Buffett's main merit is that he changed the spectrum of orientation: not only the textile industry, but insurance, heavy and light industry, and the railway.

Buffett

Company headquarters

The headquarters of which is located in Omaha (Nebraska), in fact, where the main shareholder is from - Warren Buffett. The office of the company, which is considered one of the largest companies in the world, does not differ in special chic or trendy architectural trends - the usual high-rise building typical of the USA with a large number of similar windows. Some subsidiaries have their headquarters.

The main shareholders of Berkshire Hathaway

Today at the hands of Buffett focused 321 thousand holding securities. Since the beginning of the summer of 2016, the billionaire has owned 31,7% of the corporation's voting shares and 18% of the total. Today, among the major shareholders are Charles Munger. 67% of Class B securities are held by such investment companies as:

  1. The Vanguard Group
  2. BlackRock
  3. State Street Corporation
  4. Bill & Melinda Gates Foundation Trust.

Why are Berkshire Hathaway stocks the most expensive in the world?

First of all, because this company is a synonym for reliability and development. Stocks rise in price, make a profit. Just think: the corporation is associated with industry, energy and the service sector (it sells goods through the Walmart network) and even with minimal drawdowns, the price is returning to the trend. Plus, the holding is trying to buy large portfolios of joint-stock companies, receiving a controlling stake. Securities VN is associated with stability for years.

BH stock price

 
Meetings for shareholders are very popular and large-scale. They are called Woodstock for Capitalists.

Subsidiaries of BH Corporation

Berkshire Hathaway has a simple structure: subsidiary and minority packages. Subsidiaries are companies that are wholly owned by the holding or not less than 75% of the block of shares. Today it is Duracell, NetJets and GEICO. On the Dairy Queen list, popular fast food. The basic direction of sewing clothes by Fruit of the Loom continues.

Building and construction materials

Oracle of Omaha, as Buffett is often called, is the owner of Benjamin Moore Paints, a stock in a paint company. The entire holding owns the securities of Cavalier Homes, Forest River (company), ISCAR Metalworking, Johns Manville, and 90% of the MiTek package.

Insurance and Finance

This is one of the largest destinations. It was insurance that laid the foundation for the rapid growth of capitalization. Referral submitted by Berkshire Hathaway Assurance, GEICO, Medical Protective, General Re. Of course, Bank of America is also a large part of the portfolio.

GEICO

transport and logistic

This direction in work has become especially active after the 2016 year. The company is considered the largest shareholder of United Airlines and Delta Air Lines. Plus, it is one of the three "leaders" in securities of Southwest Airlines and American Airlines. The holding is famous for “not single air”, so to speak: it has a controlling stake in Burlington Northern Santa Fe Corp., NetJets, XTRA Lease.

Utilities and Real Estate

The corporation controls more than 90% of the shares of the Berkshire Hathaway Energy Company, a company that provides gas and electricity in the United States, Alberta (Canada) and the UK. In the list of assets is the second brokerage company specializing in Real Estate in the United States. Revenues in 2017 year amounted to almost 19 billion. $.

Other directions

The production direction did not completely disappear over time, but rather transformed into a new direction. Kraft Heinz, Coca-Cola, General Motors, IBM, Procter & Gamble, Apple can be considered one of the large-scale assets of the holding. As you can see, everything is effective for investments: the production of cosmetics and computers.

How to buy shares of Berkshire Hathaway?

The purchase of such securities attracts many investors, as they are characterized by potential high returns. You can buy shares from a broker who directly goes to the New York Stock Exchange. Plus - here you can buy stocks individually. A purchase option is available through the St. Petersburg Exchange. You can purchase Berkshire Hathaway Class B securities from a FinfaxFx broker. Leverage is 1: 300.

BH Stock Review

 
Berkshire Hathaway capitalizes at 539,92 billion

Berkshire Hathaway Stock Prices (Class A and B)

Berkshire Hathaway inc has two ticker shares on the exchanges: BRK-A and BRK-B. The latter are fragmented shares of BRK-A. This is done as BRK-A have a very high cost, so not everyone can buy them. At the initiative of Buffett, a lighter, more granular version of the BRK-B was released. They can be exchanged for BRK-A. Traded on the Nyse exchange. The value of securities at the moment looks like this:

  1. Class A - 540,00 $ (minus 0,16%);
  2. Class B - 220,85 $ (minus 0,21%).

Company dynamics and interesting facts

The dynamics of development on the face. I propose to compare key performance indicators.

Financial growth

Year / indicator billion $ 1998 2000 2010 2017
Turnover 14,01 34,89 34,89 34,89
Net profit 2,803 3,328 12,97 44,94
Capital 57,4 61,72 157,3 348,3

If Bernard Madoff chose a different direction of work, he could safely buy the company's shares. Interestingly, in the early 60's, the former major shareholder of Siberi Stanton offered Buffett 11,5 dollars per share. The latter agreed, but after a couple of days the owner lowered the price to 11,38 $. Stanton had no plans that Buffett would buy a controlling stake and fire him from his main job. Warren Buffett's name is always closely associated with Amancio Ortega, founder and director of Zara. They practically keep pace in the world ratings of rich people, but it is surprising that Buffett takes part in all processes of Berkshire Hathaway, and his Spanish “colleague” 2 left all posts held by 53 in different brands a year ago.

The latest news suggests that Berkshire Hathaway’s CEO intends to expand his portfolio by buying even more shares of Bank of America and some other businesses; insider information is about Amazon. Periodically, information appears in the press that the Berkshire Hathaway corporation plans to purchase something in Russia, but the official website does not confirm this. Accordingly, in Moscow there is no office or representative yet. Analysts are now worried that the situation is not far off when Buffett will resign, and it is not known how this will affect the growth of companies and stock prices.

To summarize, it is worth noting: sometimes the purchase of shares, even at an unexpected price, plays a key role in life. And if you want to know more about how to become a trader, read the material-step-by-step instructions at www.gq-blog.com. Berkshire Hathaway is an example of when big business gets bigger, and why it is imperative to remember to expand your portfolio with different securities efficiently and correctly. The corporation, like Koch Industries, is an indicator that money needs to be invested in various areas and rapidly increase capital. I wish that if you want to buy securities of the holding, you have the financial capabilities, and the price is pleasing.

See also:

Author Ganesa K.
A professional investor with 5 years of experience with various financial instruments, maintains his blog and advises depositors. Own effective methods and information support for investments.
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Comments (33) (Comments)
Voodoogar (26.04.2020 to 16: 51)
I’ll add: there are more than 100 digging companies in the holding, which means that they all will not collapse at the same time. In fact, this is a huge fund of millions of shares !!! And it is clear that they are bought strategically, all risks are assessed in advance, and it is clear that they do not take those who "need a lifebuoy."
Taukus (22.04.2020 to 13: 27)
Thank you for the fresh, instructive and interesting portion! Berkshire Hathaway is a direct good example of how to gradually go to your dream and work strategically.
Hulanim (03.04.2020 to 22: 01)
It was a discovery for me that shares of Berkshire Hathaway can be bought on the St. Petersburg Stock Exchange, but I didn’t expect it directly. But as I understand it, piece lots do not pass here.
Molen (28.03.2020 to 20: 22)
I liked the material, I didn’t know that Coca-Cola also had with him, well, Apple - it’s just amazing.
Maurn (23.02.2020 to 15: 22)
Berkshire Hathaway shares of 500 apiece. It is quite understandable why they allowed to divide into class B. This is a very dumb investment, if the growth is at least 2–5% per year, and of dividends no more than 10%.
Zulubei (08.02.2020 to 12: 14)
I love your materials that reveal the story of a name or an entire brand. This is one of these, and as always, very lively. Thanks.
Dawnhammer (31.01.2020 to 16: 11)
Berkshire Hathaway - companies in which to work prestigiously. And they say that Buffett himself is very worried about the comfortable conditions of his subordinates.
Cordariel (12.01.2020 to 13: 56)
Warren Buffett is a genius, and his brainchild, Berkshire Hathaway, is just a coincidence, about which you also write that the former owner sold the shares directly beneficially only to Buffett. For broadening one’s horizons, it’s excellent material, but for motivation it’s not, geniuses are units
fora4ka (28.12.2019 to 11: 03)
An interesting story of the founding of Berkshire Hathaway - a losing weaving factory formed the basis of such a machine in cash, which would only aliens sink
morozoff76 (10.12.2019 to 15: 34)
Yes, and that I am not the owner of Class A shares - 540,00 $, a dozen would at least have such ...). But on the other hand, the company owns companies working in the most tidbits. The brand of the company, in the world of investment, is a kind of the most reliable capital. Berkshire Hathaway shares are excellent proof.
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