Berkshire Hathaway

Overview

Berkshire Hathaway is a multinational holding company led for decades by Warren Buffett. It owns a wide range of operating businesses and holds large equity stakes in public companies. By 2025 Berkshire’s market capitalization exceeded $1 trillion, making it one of the largest publicly traded companies in the world.

Key facts

• Founded from a textile firm that transformed into an investment and operating conglomerate under Warren Buffett.
• Holds wholly owned businesses across insurance, manufacturing, retail and services (examples: GEICO, Duracell, Fruit of the Loom, Dairy Queen, Pampered Chef, NetJets).
• Maintains large public-equity positions (notably Apple, Bank of America, UPS).
• Operates two share classes: Class A (BRK.A) and Class B (BRK.B); Class A shares have never split and carry greater voting power.
• Uses insurance “float” to fund investments and acquisitions.
• Long-term performance track record: from 1965 to 2021 Berkshire’s cumulative return far outpaced the S&P 500 (annualized returns ~20.1% vs ~10.5% over that span).

What Berkshire does

Berkshire combines operating businesses with a substantial investment portfolio. Insurance subsidiaries generate float—the pool of premiums held before claim payouts—which Buffett has historically deployed into stocks and businesses. The company manages hundreds of diverse subsidiaries while selectively adding large equity positions in public companies.

As an example of scale, Berkshire’s public-market equity portfolio was valued in the hundreds of billions of dollars (over $300 billion in recent filings), and its holdings span multiple industries from technology to finance and logistics.

Investment approach

Berkshire’s investment philosophy reflects Buffett’s value-investing principles:
* Seek businesses and securities with intrinsic value exceeding their market price.
* Favor durable businesses and strong management teams.
* Concentrate capital in high-conviction positions rather than broadly diversify.
* Hold investments for the long term to compound returns.
The combination of selective acquisitions, disciplined public-equity buying, and use of insurance float underpins Berkshire’s capital allocation strategy.

Share classes

• Class A (BRK.A): Highest voting rights, never split, typically trades at very high per-share prices.
• Class B (BRK.B): Designed to offer greater affordability and less voting power per share than Class A.
  Both classes provide exposure to the same underlying assets, but Class A shares confer greater control per share.

Leadership and succession

Warren Buffett has been the public face and chief executive architect of Berkshire’s strategy for decades. Succession planning has been a central topic; senior managers have been organized so that insurance operations and non-insurance operations are separately overseen. Greg Abel has been identified as Buffett’s successor for overall leadership, while Ajit Jain leads insurance operations. The company emphasizes continuity through its decentralized operating model and long-tenured managers.

Warren Buffett and value investing

Warren Buffett is widely known for his disciplined value-investing approach, patient capital allocation, and focus on buying quality businesses at sensible prices. His public persona—frugal, pragmatic and long-term minded—has helped make Berkshire a symbol of steady, value-oriented investing.

Performance highlights

• Exceptional long-term compounded returns since Buffett took control in the 1960s.
• Berkshire’s annual shareholder meetings attract investors and media attention for insights into value investing and capital allocation.

Frequently asked questions

Q: What is insurance “float”?
A: Float is the money insurance companies hold from premiums before paying claims. Berkshire uses that capital to invest and generate returns.

Q: Why are Class A shares so expensive?
A: Class A shares have never been split and represent direct ownership in a company with a long history of growth and retained earnings, which has driven per-share value very high.

Q: Does Berkshire only buy public stocks?
A: No. Berkshire owns many private operating businesses outright and also holds a large public-equity portfolio.

Conclusion

Berkshire Hathaway is a diversified holding company built around long-term value investing, opportunistic acquisitions, and the strategic use of insurance float. Its scale, performance history, and planned leadership transition aim to preserve the company’s capital-allocation approach as it moves beyond the Buffett era.