Hello there! Have you ever wondered what the company led by the legendary Warren Buffett actually does? It's a question many people ask, and the answer is more fascinating than you might think. It’s not a single company that makes one product. Instead, it’s a massive holding company that owns a vast collection of diverse businesses and also holds significant investments in other well-known companies. Think of it like a very large, incredibly successful family of businesses, all under one roof.
Let's dive in and explore what Berkshire Hathaway is all about.
Step 1: Understanding the Core Business Model
First, let's understand the foundation of Berkshire Hathaway. It's a multinational conglomerate, meaning it's a corporation made up of several different, seemingly unrelated businesses. The company's business model is a blend of two key strategies:
Full Ownership of Subsidiaries: Berkshire Hathaway owns dozens of businesses outright, giving it complete control over their operations. These are not just small companies; they are major players in their respective industries.
Significant Investments: The company also takes large stakes, or even minority positions, in publicly traded companies. This is where the famous stock portfolio comes in, with investments in some of the world's most recognizable brands.
Warren Buffett, along with his late business partner Charlie Munger, built this empire by buying undervalued companies and allowing the managers of those businesses to operate with significant autonomy. This hands-off approach is a hallmark of Berkshire Hathaway's management style.
Step 2: Exploring the Diverse Business Segments
Berkshire Hathaway's operations can be broken down into several main segments. Let's take a closer look at a few of them.
Insurance and Reinsurance
This is a cornerstone of Berkshire Hathaway's business. The insurance businesses generate a massive amount of cash, known as "float," from the premiums they collect. This float is then used by Buffett and his team to make other investments.
GEICO: One of the largest auto insurance providers in the United States, known for its direct-to-consumer model.
General Re: A leading reinsurance company that provides coverage for large-scale risks, including natural disasters and health-related claims.
National Indemnity Company: Another major property and casualty insurance and reinsurance company within the group.
Utilities and Energy
This segment, primarily under the name Berkshire Hathaway Energy, provides essential services to millions of customers.
Power Generation and Transmission: Businesses like PacifiCorp, MidAmerican Energy, and NV Energy provide electricity and natural gas to homes and businesses across the US.
Renewable Energy: The energy segment is also a major player in sustainable energy solutions, with investments in wind and solar power projects.
Rail Transport
BNSF Railway: A critical part of Berkshire Hathaway's portfolio is this massive railroad company, one of the largest in North America. This acquisition reflected Buffett's long-term confidence in the future of the railroad industry and its role in the economy.
Manufacturing, Services, and Retail
This is where you find a wide and fascinating collection of businesses. From consumer products to industrial parts, Berkshire Hathaway owns a little bit of everything.
Consumer Goods: This includes well-known brands like International Dairy Queen, Inc. (the parent company of Dairy Queen and Orange Julius), See's Candies (a boxed chocolates company), and Duracell (batteries).
Home Furnishings and Building Materials: The company owns Nebraska Furniture Mart, a large furniture retailer, as well as companies like Shaw Industries (the world's largest carpet manufacturer) and Acme Brick Company.
Other Businesses: This segment also includes companies like NetJets (a private jet fractional ownership company), Pampered Chef (a kitchenware company), and Fruit of the Loom (apparel).
Step 3: Examining the Stock Investment Portfolio
Beyond the companies it owns outright, Berkshire Hathaway maintains a highly concentrated portfolio of publicly traded stocks. This is where Buffett's famous value investing philosophy shines through.
Technology: As of March 2025, Apple (AAPL) was the largest holding by market value, although Berkshire sold a major stake in 2024.
Financials: Berkshire holds significant stakes in financial giants like American Express (AXP) and Bank of America (BAC).
Consumer Staples: The portfolio includes long-held investments in classic brands like The Coca-Cola Company (KO), a stake held since 1989.
Energy: The company also has major holdings in energy companies like Chevron (CVX) and Occidental Petroleum (OXY).
Buffett’s philosophy is to invest in strong businesses for the long term, even without having operational control. He believes that diversification is for those who don't know what they're doing, which is why a small number of stocks make up a large percentage of the portfolio.
Step 4: Understanding the Stock and How to Invest
Berkshire Hathaway's stock is known for its high price and unique structure.
Class A Shares (BRK.A): These are the original, incredibly expensive shares. As of 2025, one Class A share exceeded $800,000, making it the highest-valued stock in the United States.
Class B Shares (BRK.B): These were created to be more affordable for individual investors. The Class B shares are a fraction of the price of the Class A shares, making it much easier for the average person to own a piece of Berkshire Hathaway.
How do you buy the stock?
Open a Brokerage Account: You need an investment account with a brokerage firm.
Fund the Account: Add money to your brokerage account.
Search for the Stock: Search for the ticker symbol BRK.B within the brokerage platform.
Place Your Order: You can purchase the stock in shares or, if your brokerage offers it, in fractional shares, which allows you to buy a portion of a share for a specific dollar amount.
Remember: Berkshire Hathaway does not pay a dividend. Instead, the company reinvests its earnings back into the businesses, a strategy that has proved highly successful for long-term value creation.
10 Related FAQ Questions
Here are some quick answers to common questions about Berkshire Hathaway.
How to find out which companies Berkshire Hathaway owns? You can find a list of many of Berkshire Hathaway's subsidiaries on their official website, categorized by their business activities.
How to buy Berkshire Hathaway Class A stock? While you can purchase it through a brokerage account, the price of a single Class A share (BRK.A) is exceptionally high. Most individual investors opt for the more affordable Class B shares (BRK.B).
How to research Berkshire Hathaway's financial performance? You can find the company's annual and quarterly reports on its investor relations website, which provides information on revenue, net income, and other key financial metrics.
How to know if Berkshire Hathaway is a good investment for me? Before investing, you should research the company's fundamentals, consider your own investment goals and risk tolerance, and decide how much to invest.
How to see Berkshire Hathaway's top stock holdings? You can find information on Berkshire Hathaway's top holdings in public filings and financial news sources. The top holdings often include companies like Apple, American Express, and Bank of America.
How to buy fractional shares of Berkshire Hathaway stock? Many brokerage platforms offer the ability to buy fractional shares. You can invest a specific dollar amount, and you'll own a corresponding fraction of a share.
How to attend the Berkshire Hathaway annual meeting? The annual meeting is a major event in Omaha, Nebraska, and is often referred to as the "Woodstock for Capitalists." Information on how to attend is typically available on the company's website.
How to become a shareholder of Berkshire Hathaway? You become a shareholder when you successfully purchase shares of either BRK.A or BRK.B stock through a brokerage account.
How to understand Berkshire Hathaway's leadership? For decades, the company was led by Warren Buffett as CEO and Charlie Munger as Vice Chairman. Following Munger's passing, Greg Abel oversees most of the company's investments and has been named as Buffett's successor.
How to determine if Berkshire Hathaway's stock is overvalued? Assessing a stock's valuation requires analyzing its financial performance, comparing it to its peers and the market, and considering its long-term growth prospects. This can be a complex process that requires research and analysis.