Berkshire Hathaway stands as one of the most successful conglomerates in corporate history, transforming from a failing textile mill into a trillion-dollar holding company. Under Warren Buffett’s leadership since 1965, the company has become synonymous with value investing and long-term wealth creation.
Headquartered in Omaha, Nebraska, Berkshire Hathaway operates through diverse subsidiaries spanning insurance, railroads, energy, manufacturing, and retail sectors. The company also maintains significant equity positions in major corporations including American Express, Coca-Cola, and Bank of America.
With a market capitalization exceeding one trillion dollars as of 2025, Berkshire Hathaway represents a unique business model that combines wholly-owned operating businesses with strategic investments, creating sustainable value for shareholders across generations.
Key Stats
Berkshire Hathaway History
Oliver Chace founded the Valley Falls Company in Rhode Island, establishing the roots of what would become Berkshire Hathaway through textile manufacturing.
Berkshire Cotton Manufacturing Company was incorporated in Adams, Massachusetts, beginning operations in the textile industry.
Valley Falls Company merged with Berkshire Cotton Manufacturing to form Berkshire Fine Spinning Associates, consolidating multiple textile operations.
Berkshire Fine Spinning Associates merged with Hathaway Manufacturing Company, creating Berkshire Hathaway and establishing headquarters in New Bedford, Massachusetts.
Warren Buffett began purchasing Berkshire Hathaway stock after observing patterns in share price movements related to mill closures.
Buffett gained control of Berkshire Hathaway through his investment partnership, marking the beginning of its transformation into a diversified holding company.
Berkshire entered the insurance industry by acquiring National Indemnity Company for 8.6 million dollars, laying the foundation for future growth.
The company closed its last textile operations, officially ending the original business and fully committing to insurance and investments.
Berkshire completed its acquisition of GEICO, significantly expanding its insurance operations and creating a major source of investment capital.
Burlington Northern Santa Fe Railway acquisition was completed for 34 billion dollars, representing the largest acquisition in Berkshire’s history.
Berkshire began investing in Apple, which would become its largest equity holding by market value within several years.
Berkshire Hathaway became the eighth US public company to reach a one trillion dollar market capitalization and the first non-technology company to achieve this milestone.
Warren Buffett announced Greg Abel would assume the CEO position by year-end, marking a historic leadership transition for the conglomerate.
Berkshire Hathaway Co-founders
Founded the Valley Falls Company in 1839, which later became part of Berkshire Hathaway. Chace previously worked with Samuel Slater and established his first textile mill in 1806.
Founded Hathaway Manufacturing Company in 1888 in New Bedford, Massachusetts, using profits from whaling and the China Trade. The company later merged with Berkshire Fine Spinning Associates in 1955.
Took control of Berkshire Hathaway in 1965 and transformed it from a failing textile company into one of the world’s most valuable conglomerates through strategic acquisitions and value investing.
Berkshire Hathaway Revenue
Berkshire Hathaway generates revenue through its diversified portfolio of wholly-owned subsidiaries and significant equity investments across multiple industries.
The company reported approximately 370 billion dollars in revenue for the trailing twelve months ending June 2025, reflecting the breadth of its operations across insurance, railroad transportation, energy, manufacturing, and retail sectors.
Berkshire Hathaway Market Cap
Berkshire Hathaway’s market capitalization has experienced remarkable growth since Warren Buffett took control in 1965, reflecting the company’s consistent value creation and shareholder returns over decades.
Berkshire Hathaway Acquisitions
Berkshire Hathaway’s acquisition strategy has been instrumental in building one of the most successful conglomerates in corporate history. The company’s approach focuses on acquiring businesses with strong management, predictable earnings, and competitive advantages that generate consistent cash flows.
Among the most significant acquisitions, the 2010 purchase of Burlington Northern Santa Fe Railway for 34 billion dollars represented the largest transaction in Berkshire’s history. This acquisition provided Berkshire with ownership of one of North America’s largest freight rail networks, offering essential transportation infrastructure across the United States.
The insurance sector has remained central to Berkshire’s acquisition activity. The 1996 completion of GEICO’s acquisition transformed Berkshire’s insurance operations, while the 1998 purchase of General Re for 22 billion dollars significantly expanded reinsurance capabilities. More recently, the 2022 acquisition of Alleghany Corporation for 11.6 billion dollars further strengthened insurance operations.
Precision Castparts represented another major investment when Berkshire acquired the aerospace components manufacturer for 32.1 billion dollars in 2016. The company also acquired substantial stakes in energy through MidAmerican Energy in 1999 and later achieved full ownership of what became Berkshire Hathaway Energy.
Consumer brands have featured prominently in Berkshire’s portfolio. The 2013 partnership with 3G Capital to acquire Heinz for 28 billion dollars, followed by its 2015 merger with Kraft to form Kraft Heinz, demonstrated Buffett’s interest in established food brands. Earlier acquisitions included Fruit of the Loom for 835 million dollars in 2002, NetJets for 725 million dollars in 1998, and Dairy Queen as part of International Dairy Queen in 1998.
The company has diversified into various sectors including automotive retail through Van Tuyl Group in 2014, which created Berkshire Hathaway Automotive. Manufacturing acquisitions encompassed Marmon Group for 4.5 billion dollars in 2007, McLane Company for 1.5 billion dollars in 2003, and Clayton Homes for 1.7 billion dollars in 2003. Berkshire also acquired Benjamin Moore Paint and Johns Manville in the early 2000s, expanding into building materials and specialty chemicals.
Throughout its history, Berkshire has completed over 60 acquisitions across 23 sectors in multiple countries. The approach emphasizes purchasing entire companies rather than minority stakes, maintaining existing management teams, and providing patient capital for long-term growth. This strategy has enabled Berkshire to build a portfolio of businesses that generate substantial operating earnings while requiring minimal corporate oversight.
Berkshire Hathaway Competitors
Berkshire Hathaway faces competition from various financial services firms, investment companies, and diversified conglomerates, though its unique business model makes direct comparisons challenging across all operating segments.
| Competitor | Industry Focus | Headquarters |
|---|---|---|
| Markel Group | Specialty Insurance & Holdings | Richmond, Virginia |
| Fairfax Financial Holdings | Property & Casualty Insurance | Toronto, Canada |
| BlackRock | Investment Management | New York, New York |
| State Farm | Insurance Services | Bloomington, Illinois |
| Allstate | Property & Casualty Insurance | Northbrook, Illinois |
| The Carlyle Group | Private Equity | Washington, D.C. |
| KKR & Co | Alternative Asset Management | New York, New York |
| Bouygues | Diversified Conglomerate | Paris, France |
| Exor | Holding Company | Amsterdam, Netherlands |
| Tata Group | Diversified Conglomerate | Mumbai, India |
FAQs
What does Berkshire Hathaway do?
Berkshire Hathaway operates as a diversified holding company owning subsidiaries in insurance, railroads, energy, manufacturing, and retail while maintaining significant equity investments in publicly traded companies.
Who owns Berkshire Hathaway?
Berkshire Hathaway is a publicly traded company. Warren Buffett personally owns 38.4 percent of Class A voting shares, representing 15.1 percent overall economic interest in the company.
When was Berkshire Hathaway founded?
Berkshire Hathaway was formed in 1955 through the merger of Berkshire Fine Spinning Associates and Hathaway Manufacturing Company. Warren Buffett took control in 1965.
Why are Berkshire Hathaway shares so expensive?
Berkshire Class A shares are expensive because the board has historically opposed stock splits. Shares exceeded 700,000 dollars in 2024, the highest per-share price globally.
What is Berkshire Hathaway known for?
Berkshire Hathaway is known for value investing under Warren Buffett, exceptional long-term shareholder returns, and owning diverse businesses including GEICO, BNSF Railway, and major equity stakes.