Berkshire Hathaway is the investment company led by Warren Buffett and known for owning a diversified portfolio of businesses.
Berkshire Hathaway began as a textile manufacturer, but Warren Buffett and his investment partners transformed it into a holding company. The group now owns subsidiaries in areas including insurance, railroads, energy, manufacturing, retail, and services, while also holding large publicly traded stock investments.
Buffett became chairman and chief executive in 1965. Berkshire’s insurance operations, especially GEICO and reinsurance businesses, have been central to its financial structure because premiums provide investable funds known as “float.”
Berkshire is often compared with an investment fund, but it is a corporation that owns operating businesses directly. Its market capitalization reflects shareholders’ valuation of the whole group, not simply the daily price of one portfolio holding.