Warren Buffett led Berkshire Hathaway as it became one of the world’s largest public companies by market value.
Buffett became chairman and chief executive of Berkshire Hathaway in 1965 after acquiring control of the struggling textile company. He gradually transformed it into a diversified holding company by directing its capital into insurance, railroads, utilities, manufacturing, retail, and large investments in publicly traded businesses.
Berkshire’s insurance operations became especially important because premiums created investable funds known as float. The company could invest that money while it waited to pay valid claims. Berkshire also became famous for retaining earnings and making long-term investments rather than emphasizing dividends.
Berkshire has two major publicly traded share classes, Class A and Class B. Class A shares have much greater voting power and a far higher per-share price. That price should not be confused with market capitalization, which reflects the value of all outstanding shares together.