Have you ever wondered about the inner workings of one of the world's most powerful and iconic companies, Berkshire Hathaway? It's a name synonymous with its legendary leader, Warren Buffett, and a sprawling empire of diverse businesses. But how many people are actually behind the scenes, running this colossal conglomerate? The answer might surprise you and is a fascinating testament to Buffett's unique management philosophy.
Let's dive in and explore the surprisingly lean team that steers the ship at Berkshire Hathaway.
Step 1: Get Ready to Challenge Your Assumptions!
When you think of a company with a market capitalization in the hundreds of billions and hundreds of thousands of employees, what kind of corporate headquarters do you imagine? A massive, bustling campus with thousands of employees, right? A towering skyscraper filled with cubicles, a labyrinth of departments, and layers upon layers of management?
Think again.
The reality of Berkshire Hathaway's corporate headquarters is drastically different. It's a deliberate and unconventional approach that is a core part of their success. So, are you ready to learn the truth?
Step 2: Unveiling the Lean Corporate Core
This is where the magic (or, more accurately, the genius) of the Berkshire Hathaway model truly shines. The number of people who work at the corporate headquarters is incredibly small, almost unbelievable for a company of its size.
Sub-heading: The Incredibly Small Headquarters Staff
As of late 2024, sources indicate that the corporate headquarters of Berkshire Hathaway in Omaha, Nebraska, is run by a staff of only around 27 people.
Yes, you read that right.
This tiny team handles the centralized functions for a company with a total workforce of over 390,000 employees across all its subsidiaries. This includes everything from the day-to-day administration to financial reporting and legal matters. This extremely small team is a reflection of Warren Buffett's belief in decentralization and trusting the managers of the individual businesses.
Sub-heading: The Power of Decentralization
Instead of a top-heavy corporate structure, Berkshire Hathaway operates as a holding company. This means it owns a diverse portfolio of companies, but it gives the management of those individual companies a high degree of autonomy. The CEOs of subsidiaries like Geico, BNSF Railway, and Dairy Queen are empowered to run their businesses with minimal interference from Omaha.
This model is a key reason why the corporate staff can be so small. The day-to-day operational decisions, hiring, and business strategies are handled at the subsidiary level. The corporate team focuses on capital allocation, acquisitions, and the overall strategic direction of the conglomerate.
Step 3: Meet the Key Players at the Helm
While the corporate team is small, the leadership is incredibly impactful. The decision-making power is concentrated in the hands of a few key individuals.
Sub-heading: The Triumvirate of Leadership
For decades, the company was famously led by the legendary duo of Warren Buffett and his long-time partner, Charlie Munger. With Munger's passing in 2023, the leadership structure has formally transitioned to a new era.
Warren Buffett (Chairman and CEO): The "Oracle of Omaha" is the central figure. His role is to allocate capital, oversee the company's investments, and set the overall culture and philosophy. He is the ultimate decision-maker and the public face of the company.
Greg Abel (Vice Chairman, Non-Insurance Operations): Greg Abel is Warren Buffett's designated successor as CEO. He joined Berkshire in 1992 and has been a key figure in the company's energy businesses. He now oversees all of Berkshire's non-insurance operations, a massive portfolio of diverse companies. He is responsible for managing these businesses and is poised to lead the company into the future.
Ajit Jain (Vice Chairman, Insurance Operations): Ajit Jain is a legendary figure within the insurance industry. He joined Berkshire in 1986 and built the insurance operations into a global powerhouse. He is responsible for all of Berkshire's insurance businesses, including Geico and General Re. His expertise in underwriting complex risks is a cornerstone of Berkshire's financial strength.
Sub-heading: The Board of Directors
The board of directors provides governance and oversight. It includes a mix of long-time Buffett associates and independent directors. They are not compensated with stock options, a departure from the norm in corporate America, further aligning their interests with shareholders.
Step 4: Understanding the Broader Picture
It's crucial to distinguish between the corporate headquarters and the total workforce. While only a handful of people work in the Omaha office, the total number of people employed by all of Berkshire Hathaway's subsidiaries is vast.
Sub-heading: The Total Workforce of the Empire
As of the end of 2024, Berkshire Hathaway employed approximately 392,400 people across its massive portfolio of companies. This includes employees at:
BNSF Railway
Geico
Berkshire Hathaway Energy
Precision Castparts
Lowe's
Dairy Queen
and many, many more.
So, when you ask "how many people run Berkshire Hathaway," the answer depends on your definition. If you're talking about the hands-on, daily management of the entire conglomerate from the top, it's a shockingly small team. If you're talking about the total number of people who contribute to the company's success across its many businesses, the number is in the hundreds of thousands.
10 Related FAQ Questions
How to understand the difference between Berkshire Hathaway's corporate staff and its total employees? The corporate staff, based in Omaha, is a small team of around 27 people who focus on capital allocation and high-level strategy. The total number of employees is over 390,000, representing all the people working for the dozens of companies owned by Berkshire Hathaway, such as Geico and BNSF Railway.
How to become a part of the Berkshire Hathaway corporate team? Due to the extremely small size of the corporate team, openings are rare. Positions are often filled through internal promotions or direct recruitment. It's not a company where you can typically apply for a job at the corporate level through a standard online portal.
How to find out who the key executives are at Berkshire Hathaway? The key executives are Warren Buffett (Chairman and CEO), Greg Abel (Vice Chairman, non-insurance operations), and Ajit Jain (Vice Chairman, insurance operations). You can also find a list of the board of directors and other officers on the company's annual proxy statements and website.
How to learn about Warren Buffett's management philosophy? To understand Buffett's management philosophy, you should read his annual letters to shareholders. They are a treasure trove of his thoughts on business, investing, and management. His emphasis on decentralization, trust, and long-term value is a consistent theme.
How to invest in Berkshire Hathaway? You can invest by purchasing shares of Berkshire Hathaway Class A (BRK.A) or Class B (BRK.B) stock through a brokerage account. The Class B shares are much more affordable and have a similar performance to the Class A shares, just at a lower price point.
How to attend the Berkshire Hathaway annual shareholder meeting? The annual shareholder meeting is a major event in Omaha, Nebraska, and is often called the "Woodstock for Capitalists." You must be a shareholder to attend. You can get a credential to attend by presenting a proof of ownership of at least one share of BRK.A or BRK.B stock.
How to know which companies Berkshire Hathaway owns? Berkshire Hathaway's portfolio is vast and includes both wholly-owned subsidiaries and publicly traded stocks. You can find a comprehensive list of its holdings in its annual reports and quarterly filings with the SEC (Securities and Exchange Commission).
How to contact the Berkshire Hathaway corporate office? The corporate office is located at 3555 Farnam Street, Suite 1440, Omaha, NE 68131. The contact information is also available on the company's official website, although the small size of the team means direct contact is often limited.
How to work for a Berkshire Hathaway subsidiary? To work for a Berkshire Hathaway subsidiary, you would apply directly to the specific company you are interested in, such as Geico, BNSF, or Dairy Queen. Each subsidiary has its own hiring process and career opportunities.
How to analyze Berkshire Hathaway's financial performance? You can analyze Berkshire Hathaway's financial performance by reviewing its annual reports (10-K) and quarterly reports (10-Q), which are publicly available on the SEC's EDGAR database. Key metrics to look at include operating earnings, book value, and cash flow from operations.
