What is Berkshire Hathaway? You must have heard this name. Warren Buffet, the sage of Omaha who is one of the riches investor in the world is the Chairman and CEO of Berkshire Hathaway. What makes Berkshire Hathaway special is that once upon a time it was failing textile company. Today, Berkshire Hathaway A stocks (BRK.A) are selling at a price of $213,400 per share. Buying BRK.A is like buying a house. The price is the same.
At one time, Berkshire made linings for men’s suits. Now, its various 100%-owned subsidiaries make cowboy boots, floor enamel and Ginsu knives; sell ear-piercing tools, diamond rings and encyclopedias; rent topiaries, candelabras and refrigerated trailers; provide insulated bags for pizza-delivery men, uniforms for police officers and shoulder pads for football players… and much, much, much more.
If Berkshire’s wholly-owned companies were independent, nine of them would be among the Fortune 500.
Some Berkshire companies are household names. They include Dairy Queen, Fruit of the Loom, Benjamin Moore & Co., See’s Candies, and half of ketchup-maker H.J. Heinz Co. (for now). Soon, Duracell batteries will also be under the Berkshire umbrella.
In Berkshire’s $115 billion stock portfolio are major stakes in some other widely known names. Berkshire owns 15% of American Express Co., 9% of Coca-Cola Co., 9% of Wells Fargo & Co. and nearly 8% of International Business Machines Corp. Other major holdings include Goldman Sachs Group Inc., Bank of America Corp. and Wal-Mart Stores Inc. Heinz is planning to merge with Kraft Foods Inc., and if the deal goes through, Berkshire will own more than one-quarter of the stock in a combined food-and-condiment powerhouse called Kraft Heinz.
If you want a lesson in investing, then you should study the case of Berkshire Hathaway. Success of Berkshire Hathaway is intricately linked with the success of one man Warren Buffet. Attending Berkshire Hathaway Annual Meeting is a great training in how to invest successfully. You can read about Berkshire Hathaway 2015 Annual Meeting here.