Berkshire Hathaway is the investment company led by Warren Buffett and publicly traded through Berkshire Hathaway shares.
Warren Buffett became chairman and controlling shareholder of Berkshire Hathaway after buying shares in the textile company during the 1960s. Under his leadership, Berkshire shifted away from textiles and built a diversified group of insurance, railroad, utility, manufacturing, and consumer businesses.
Insurance remains central because Berkshire’s insurers provide “float,” money held between collecting premiums and paying claims. Buffett and his longtime business partner Charlie Munger used that capital, together with operating earnings, to acquire businesses and invest in public companies.
Berkshire has two main publicly traded share classes: Class A and Class B. Class A shares have an exceptionally high individual price, while Class B shares are designed to be more accessible. Share price and market capitalization are different measures, so Berkshire’s famous Class A price should not be mistaken for its total company value.