How much does Famous Insurance Company Berkshire Hathaway earn? Berkshire Hathaway Case Study in [current_date format=’Y’]

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Do you know who is the world’s most investing company?

This is Berkshire Hathaway, which is the second largest profit making company in the world. 

Berkshire Hathway was started by the famous philanthropist and investor, Warren Buffett, who is the third richest person in the world. Who started his initial business in textile, but now he owns companies in various industries such as media, technology, food and beverage. The company has also invested in the very popular company Apple and the Indian company One97.

The company was ranked No. 1 in revenue by the United States. The company’s final market value was $496 billion. 

So let’s understand the case study of Berkshire Hathaway, today we will discuss how much profit Berkshire Hathaway earns and which companies they acquired.

Today we will know.

1. What is Berkshire Hathaway?

2. How did Berkshire Hathaway start?

3. What does Berkshire Hathaway do?

4. How much profit does Berkshire Hathaway make?

5. Digital link of Berkshire Hathaway.

6.Management team of Berkshire Hathaway

7.Facts about Berkshire Hathaway .

8. How much funding did Berkshire Hathaway collect? 

9. Companies bought by Berkshire Hathaway. 

10. Investment made by Berkshire Hathaway.

11. Future plans of Berkshire Hathaway.

1. What is Berkshire Hathaway?

It is a funding company of America. Famous investor Warren Buffet is running this company. The company owns shares of many well-known private companies such as GEICO and very large companies such as Apple. The company’s headquarters is located in Omaha, Nebraska, United States. The company’s CEO and chairman is 88-year-old Warren Buffet, who is still leading the company to success. The company is trading at a cool $304,000 on the New York Stock Exchange. Berkshire Hathaway is buying many loss-making companies and bringing them into profit.

Berkshire hathaway profit

2. How did Berkshire Hathaway start?

Berkshire Hathaway started its early days as a textile manufacturing company named Valley Falls, founded by Oliver Chase. Oliver Chase previously had the first successful textile mill in the United States. In 1929, Falls Valley merged with the Berkshire Manufacturing Company to become known as Berkshire Fine Spinning Associates.

In 1955, the company merged with Hathaway Manufacturing Company, known as Berkshire Hathaway. In 1962, famed investor Warren Buffet began buying shares of Berkshire Hathaway. At that time the company was facing losses in the textile business.

Also Read-Top Insurance Companies in USA

Santon made a verbal offer to sell his share to Warren Buffet at $11.5, but in a written offer he said the share price was $11.3. Warren Buffet was angry at these conditions, instead of selling his share, he bought more shares of Berkshire Hathaway. He then bought the company as well as expanded the business into other investment businesses. In the late 1970s, he acquired GEICO. Buffett created Berkshire Hathaway by buying shares of several companies.

Berkshire Hathaway constantly buys loss-making companies so that they can build successful companies in the future.

Berkshire Hathaway

3. What does Berkshire Hathaway do?

The company started its business from the textile industry in its initial days. Berkshire Hathaway also operates a number of companies such as Home Service of America and Berkshire Hathaway Direct Companies.

 Berkshire Hathaway also provides insurance services. The company provides a range of goods and services, including computer manufacturing, electronic products, providing insurance, food products and automotive products. All services and production are owned by Berkshire Hathaway. The company has a multitude of business which means that the main ones are Berkshire Hathaway Acquired Companies.

Till now Berkshire Hathaway has acquired many companies. Thus the business model of the company is very simple. This company buys loss making companies and turns them into profitable companies.
Berkshire Hathaway Stock Price

4. How much profit does Berkshire Hathaway make?

By now you have understood the business model of Berkshire Hathaway, now let us have a look at the profit of the company. As we know that the company has many businesses and they have many sources of income. In 2017, the company reported net income of $44.9 billion on revenue of $242 billion, an 8.3% increase over the previous fiscal year.

In 2018, the company made a profit of $40.9 billion with $248 billion in revenue. Berkshire Hathaway reported revenue of $64,972 for the quarter ended September 30, 2019. 

The yearrevenue profit
2018$ 242 B$ 40.9 B
2017$ 242137 M$ 44940 M
2016$ 223,604 M$ 24074 M
2015$ 210,943 M$ 24083 M
2014$194,699M$ 19872 M

5. Digital link of Berkshire Hathaway.

Websitewww.berkshirehathaway.com@
linkedinView on LinkedIn
Contact emailberkshirehathaway.com

6. Management team of Berkshire Hathaway.

The CEO of the company is the very famous businessman and investor Warren Buffett, who has a proven track record of earning billions from investments.

Warren Buffett was born on January 30,1930 in Omaha, Nebraska, United States. Warren Buffet’s father worked as a stockbroker. Warren Buffett often visited his father’s stockbroker’s shop and watched stock prices. At the age of 11, Warren Buffet bought 3 shares of Cities Services. He sold these shares for a small profit. Thus began to take a keen interest in Warren’s investments. Warren Buffet invests in several industries such as the media , insurance, food and beverage industries. His investment habits made him the third richest person in the world and has a net worth of $87 billion.

Berkshire Hathaway
CEO of Berkshire Hathaway

List of Berkshire Hathaway’s management team

CEO & President Warren Buffet
director of communicationskimberley archibald
directorScott Forbes
directorsue decker
board membersHoward Buffett
board membersDonald Keough

7. Facts about Berkshire Hathaway. 

Categories  Air Transportation, Automotive, Consumer, Credit, Food Processing, Insurance, Property Insurance, Railroad, Real Estate
Headquarters Region Midwestern US 
Date of establishment January 1, 1839
operating statusActive
statusIPO
Number of Employeesfunding10001+
legal nameBerkshire Hathaway Inc.
IPO StatusActive
company typeFor profit

8. How much funding did Berkshire Hathaway collect?

Berkshire Hathaway

The company never raised any funds from Venture Capital and Angel Investors. The company just launches its IPO from which the company raised $3.5 M. Companies go from private to public after launching an IPO, which makes it easier for public companies to acquire new companies.

The company launched its share of shares in two categories A Category and B Category. The Class A stock traded at approximately $300,000 per share and the highest traded stock price on the New York Stock Exchange. The company also launched its Class B shares for retail investors to trade at around $200 per share. The company’s stock is the top gainer on the S&P 500 index for more than 5 years.

9. Companies bought by Berkshire Hathaway.

The main business of Berkshire Hathaway is buying companies. List of Companies Bought by Berkshire Hathaway |

name of the company  Value
Home America Servicesnot disclosed
Medical Liability Mutual Insurance not disclosed
Precision Castparts$ 37.2 B
Motorradvertribs$ 450  M
charter brokerage not disclosed
Duracell$4.7B
Van Tuyl Groupnot disclosed
WPLG Local 10did not tell
Oriental Trading Companynot disclosed
Omaha World Heraldnot disclosed
McLane Company Incnot disclosed
Burlington Northern Santa Fe LLCnot disclosed
Geiconot disclosed
Berkshire Hathaway Reinsurance Group not disclosed
Lubrizol Corporationnot mention
PacifiCorpnot mentioned

10. Investment made by Berkshire Hathaway.

                          List of companies in which Berkshire has invested |

Organization Namefunding roundinvestment
RHpost ipo equity$ 200M
One  97Funding Round – One 97$ 300 M
Teva Pharmaceutical Industriespost ipo equity$ 358 M
Pilot Flying JFunding Round – Pilot Flying J
storage capitalpost noo equity$ 377 M
Home Capital Grouppost ipo loan
ApplePost IPO Equity$ 1 B
tetrapod softwareFunding Round – Tetrapod Software $ 2.4 M

11. Future plans of Berkshire Hathaway.

As we know that Berkshire Hathaway is an investment company that buys loss making companies to make them profitable in future. Berkshire Hathaway wants to buy more companies in the future and wants to invest in new startups.

The company is looking for tech companies to invest in. 

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