Ready to dive into the world of Warren Buffett and his massive conglomerate, Berkshire Hathaway? Let's begin our journey to uncover just how many companies the "Oracle of Omaha" owns outright.
Step 1: Understand the Difference Between "Owned Outright" and "Invested In"
This is the most crucial step in understanding Berkshire Hathaway's portfolio. Many people see news headlines about Buffett buying shares in a company like Apple or Coca-Cola and think he now owns them. But that's not the case.
Owned Outright (Wholly Owned Subsidiaries): These are companies that Berkshire Hathaway has acquired completely, meaning they own 100% of the business. These are private companies within the Berkshire Hathaway ecosystem. They don't trade on the stock market under their own tickers. Think of it like this: if you buy a house, you own it outright.
Invested In (Equity Holdings): These are publicly traded companies where Berkshire Hathaway owns a stake—sometimes a very large one—but not the entire company. They are a shareholder, just like you or me, but on a much, much larger scale. Think of it like owning shares in a cooperative housing society; you're a part-owner, but you don't own the whole building.
Got it? Now that we're on the same page, let's explore the companies Berkshire Hathaway truly owns.
Step 2: Explore the Main Categories of Wholly Owned Subsidiaries
Berkshire Hathaway's fully owned companies are a diverse group, spanning a wide range of industries. They are organized into several major business segments.
Insurance: The Core of the Empire
It all started with insurance, and it remains the bedrock of Berkshire Hathaway. The "float"—the premiums collected before claims are paid—provides a consistent source of capital for investments.
GEICO: Perhaps the most famous of all Berkshire's owned companies, GEICO is a giant in the auto insurance industry. You know them from their gecko mascot and their catchy jingle.
General Re: A leading global reinsurer, providing coverage to other insurance companies.
National Indemnity Company: Another key player in the insurance sector.
Berkshire Hathaway Specialty Insurance: A more recent addition that focuses on commercial property and casualty insurance.
Railroad: A "Forever" Investment
Buffett famously loves businesses with a "moat"—a sustainable competitive advantage. The BNSF Railway is a perfect example.
BNSF Railway: One of the largest freight railroad networks in North America, BNSF is a colossal asset that transports a vast array of goods across the country. It's an indispensable part of the American economy.
Utilities and Energy: Powering America
Berkshire Hathaway has a significant footprint in the energy sector, owning a collection of utility and energy companies.
Berkshire Hathaway Energy: This is the umbrella company for a massive portfolio of utilities, including MidAmerican Energy, NV Energy, and PacifiCorp. They provide electricity and gas to millions of customers.
Manufacturing, Service & Retail: The Everyday Brands
This is where you'll find some of the most recognizable consumer brands that you interact with every day.
See's Candies: A classic example of a "moat" company. Its brand loyalty is legendary, and it has been a consistent money-maker for Berkshire for decades.
International Dairy Queen: You've probably had a Dilly Bar or a Blizzard from a Dairy Queen. This global franchise is a wholly owned subsidiary.
Fruit of the Loom: From underwear to apparel, this is a household name in clothing.
Duracell: The iconic battery brand known for its long-lasting power.
Precision Castparts Corp.: A major manufacturer of complex metal components for the aerospace and industrial markets. A huge acquisition for Berkshire.
Clayton Homes: The largest builder of manufactured homes in the United States.
McLane Company: A massive supply chain services and wholesale distribution company, serving everything from convenience stores to restaurants.
Benjamin Moore & Co.: A well-known premium paint brand.
The Pampered Chef: A direct-selling company for kitchen tools and products.
NetJets: The world's largest private jet ownership and charter company.
Step 3: Finding the Total Number
So, how many companies does Berkshire Hathaway own outright?
There isn't one single, fixed number that is always accurate. The list of wholly owned subsidiaries can change as Berkshire Hathaway makes new acquisitions or divests from certain businesses.
However, based on the most recent publicly available information, the number of wholly owned subsidiaries is well over 60, and potentially over 80 if you include smaller, less-known entities and their sub-subsidiaries. A look at the company's SEC filings, particularly the Exhibit 21, provides a comprehensive (and very long) list of these subsidiaries.
So, while you might hear a number like "65" or "70," the key takeaway is that the number is significant and represents a vast, diverse conglomerate of businesses. It's not just a handful of companies; it's a sprawling ecosystem of enterprises, each contributing to the overall success of Berkshire Hathaway.
Step 4: A Quick Look at the Other Half of the Portfolio
While the wholly owned companies are the foundation of Berkshire, don't forget about the publicly traded investments. These are the companies you hear about more often in the news.
Berkshire Hathaway's public stock portfolio is valued at hundreds of billions of dollars and includes massive stakes in companies like Apple, Bank of America, Coca-Cola, American Express, and Chevron. These are not owned outright, but they represent a substantial portion of Berkshire's overall value.
10 Related FAQ Questions
Here are some quick answers to common questions about Berkshire Hathaway's ownership.
1. How to find a complete list of all companies owned by Berkshire Hathaway? You can find a list of Berkshire Hathaway's wholly owned subsidiaries in the company's annual reports and SEC filings, specifically Exhibit 21. The official Berkshire Hathaway website also lists many of its subsidiaries.
2. How to distinguish between a Berkshire Hathaway subsidiary and an equity holding? A subsidiary is a company that Berkshire Hathaway owns 100%, while an equity holding is a publicly traded company where Berkshire Hathaway owns a minority or majority stake but not the entire company.
3. How to know if a company is a subsidiary of Berkshire Hathaway? Look for a mention of Berkshire Hathaway on the company's "About Us" or "Investor Relations" page. You can also search public databases and news articles, but the most reliable source is the company's own SEC filings.
4. How to invest in the companies owned by Berkshire Hathaway? You can invest in the publicly traded companies (equity holdings) by buying their stock on the market. For the wholly owned subsidiaries, you can't buy their stock directly as they are private companies. However, you can invest in Berkshire Hathaway (NYSE: BRK.A or BRK.B) itself, which gives you exposure to all of its businesses.
5. How to explain Warren Buffett's investment philosophy? Warren Buffett's philosophy, often called "value investing," focuses on buying companies with strong fundamentals, durable competitive advantages ("moats"), and excellent management, at a reasonable price. He prefers to buy great businesses at a fair price rather than fair businesses at a great price.
6. How to get a job at a Berkshire Hathaway company? Since each subsidiary operates independently, you should apply directly to the specific company you are interested in. They handle their own hiring and management.
7. How to understand the "float" in Berkshire Hathaway's insurance business? The "float" is the money that insurance companies receive in premiums before they have to pay out claims. Berkshire Hathaway can invest this money, and as long as they manage the insurance business well, this is a source of free capital for Buffett to deploy.
8. How to measure the size of Berkshire Hathaway? Berkshire Hathaway is measured by its massive market capitalization, its diverse portfolio of businesses, and its immense cash reserves, making it one of the largest and most influential companies in the world.
9. How to find out about Berkshire Hathaway's newest acquisitions? New acquisitions are announced through press releases and included in Berkshire Hathaway's quarterly and annual reports.
10. How to find the revenue and earnings of Berkshire Hathaway's subsidiaries? The financial performance of individual subsidiaries is consolidated into the overall financial statements of Berkshire Hathaway Inc., which are available in their annual 10-K and quarterly 10-Q filings with the SEC.