Berkshire Hathaway, led for decades by Warren Buffett, is among the world’s largest companies by market capitalization.
Berkshire Hathaway is a diversified holding company whose businesses include insurance, freight rail, utilities, energy, manufacturing, and retail. Warren Buffett became its chairman and chief executive after acquiring shares in the struggling textile company during the 1960s and gradually transforming it into an investment and operating conglomerate.
The company is particularly known for its insurance subsidiaries, including GEICO and General Re. Insurance provides Berkshire with “float”—premiums held before claims are paid—which can be invested under appropriate conditions. Berkshire also owns major operating businesses such as BNSF Railway.
Berkshire has two widely followed publicly traded share classes: Class A and Class B. Class A shares have an unusually high price because each share represents much greater economic and voting value. Market capitalization combines both classes, so looking only at the share price can give a misleading impression of the company’s total value.