Ready to dive into the fascinating history of one of the world's most renowned companies? Let's take a look at the history of Berkshire Hathaway and uncover just how old this conglomerate truly is.
Step 1: Engage with the History
Let's begin our journey by going back in time. Have you ever considered that a company known for its diverse holdings in everything from insurance to energy could have started as a textile manufacturer? It’s a bit surprising, right? Berkshire Hathaway's roots are in the New England textile industry, a world away from the financial powerhouse it is today.
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| How Old Is Berkshire Hathaway |
Step 2: The Merging of Two Textile Titans
The company's history can be traced back to the 19th century. In fact, it's rooted in two separate Massachusetts cotton mills:
Hathaway Manufacturing Company, which was incorporated in 1888.
Berkshire Cotton Manufacturing Company, which was founded in 1889 and later became Berkshire Fine Spinning Associates in 1929.
These two firms eventually merged in 1955, forming the company we know today as Berkshire Hathaway. At the time of the merger, the company was a behemoth in the New England textile industry, with 14 plants and over 10,000 employees. However, despite its size, the company faced significant challenges and operated at a loss for several years after the merger.
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Step 3: Warren Buffett's Involvement
This is where the story takes a legendary turn. In the early 1960s, a young investor named Warren Buffett began to take notice of the struggling textile company.
Buffett's Acquisition and the "Stupid Decision"
In 1962, Buffett's investment group, Buffett Partnership Ltd., began buying shares of Berkshire Hathaway at a discounted price, believing that the company's liquidations and share repurchases made it an attractive investment. In 1964, Berkshire Hathaway's management offered to buy back Buffett's shares at a certain price. However, when the official offer came in, it was for a slightly lower price than what was orally agreed upon. Irritated by this turn of events, Buffett decided to buy more shares instead of selling, eventually gaining control of the company in 1965. This decision, driven by emotion rather than pure logic, is something Buffett has referred to as a "monumentally stupid decision" from a business standpoint, as the textile business was a terrible industry.
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Step 4: The Transformation into a Conglomerate
Under Buffett's control, Berkshire Hathaway began its incredible transformation. While the textile business continued to struggle and was eventually shut down in 1985, Buffett started to use the company as his primary investment vehicle.
The Shift to Insurance and Beyond
A key moment in this transformation was the acquisition of National Indemnity Company, an insurance company, in 1967. This move marked Berkshire Hathaway's entry into the insurance business and provided Buffett with a steady source of cash, known as "float," that could be used for further investments. From there, the company expanded into diverse industries through a series of acquisitions, including:
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See's Candies in 1972.
GEICO in 1996.
NetJets in 1998.
Burlington Northern Santa Fe (BNSF) in 2008.
Precision Castparts Corp. in 2016.
Today, Berkshire Hathaway is a multinational conglomerate with a wide array of holdings, including major stakes in companies like Apple, Coca-Cola, and American Express, and a portfolio of fully-owned businesses.
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How old is Berkshire Hathaway? Let's do the math.
To answer the original question directly, Berkshire Hathaway, as the combined entity, was officially formed in 1955. From that point to the current date of June 30, 2025, that makes the company 70 years old. However, if you trace its history back to the founding of its predecessor, Hathaway Manufacturing Company, in 1888, the company's lineage is over a century old.
Related FAQ
How to trace Berkshire Hathaway's origins? Berkshire Hathaway's origins can be traced back to two textile companies, Hathaway Manufacturing Company (1888) and Berkshire Cotton Manufacturing Company (1889), which merged in 1955.
How to find out when Warren Buffett gained control of Berkshire Hathaway? Warren Buffett began buying shares in 1962 and gained control of the company in 1965.
How to know what Berkshire Hathaway was originally? Berkshire Hathaway was originally a textile manufacturing company.
QuickTip: Don’t just consume — reflect.
How to explain the significance of the 1955 merger? The 1955 merger of Hathaway Manufacturing Company and Berkshire Fine Spinning Associates officially formed the company known as Berkshire Hathaway, Inc.
How to describe the company after Warren Buffett's takeover? After Warren Buffett took control in 1965, the company transitioned from a struggling textile manufacturer into a diversified conglomerate through a series of strategic acquisitions.
How to understand the concept of "float" in Berkshire Hathaway's business model? "Float" is the cash generated by Berkshire Hathaway's insurance businesses from collected premiums that can be used for investments until claims need to be paid out.
How to know who founded the predecessor companies of Berkshire Hathaway? Oliver Chace founded the textile manufacturing company that would eventually become Berkshire Hathaway.
How to find out about Berkshire Hathaway's first major acquisition under Buffett's leadership? Berkshire Hathaway's first major acquisition under Warren Buffett was the purchase of the Nebraska Furniture Mart.
How to identify some of Berkshire Hathaway's key acquisitions? Key acquisitions include GEICO, See's Candies, Burlington Northern Santa Fe (BNSF), and Precision Castparts Corp.
How to find information on Berkshire Hathaway's stock history? You can find information on Berkshire Hathaway's stock price history, including annual percentage changes, on financial data websites.
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