Berkshire Hathaway is considered a holding company for a horde of businesses which is run by its CEO and Chairman, Warren Buffett. This company is headquartered in Nebraska, and it began its journey in the form of a collection of textile milling plants. At the time when Buffett turned the controlling shareholder during the mid-1960s, he started an advanced strategy of distracting cash flows from the central business into other investments. However, in the year 2017, Berkshire Hathaway had occupied a market capitalization of around $488 billion, and it is one of the five most prominent publicly traded companies in the entire world.
Berkshire Hathaway owns several reputable companies, like Dairy Queen, Lubrizol, GEICO, Fruit of the Loom, Long & Foster, Helzberg Diamonds, BNSF Railway, Pampered Chef, FlightSafety International, and NetJets. Additionally, it retains 368.6% of Pilot Flying J and 26.7% of the Kraft Heinz Company. It also holds a record of remarkably minority holdings in American Express (17.6%), Wells Fargo (9.9%), Bank of America (6.8%), and Apple (5.22%). From the year 2016, this company has possessed significant holdings in the significant US airline carriers, and presently, it has emerged as the biggest shareholder in Delta Airlines and United Airlines besides being a top three shareholder in American Airlines and Southwest Airlines.
The recent news
Warren Buffett’s Berkshire Hathaway is all set to purchase a little palisade in One97 Communications Ltd., the parental of Paytm, turning it a billionaire investor’s initial venture in an Indian company. India’s biggest payment services provider is in talks with Berkshire Hathway from early February for raising about ₹ 2,200-2,500 crore at a valuation of nearly $10-12 billion.” The deal that is likely to be proclaimed within a subsequent couple of weeks will be the first investment of Berkshire Hathaway in the nation’s vital startup ecosystem. Again, it will turn out to be the first investment of the company in the privately-held expertise organization in the world.
Previously, Warren Buffett’s Berkshire Hathaway has invested in some widely listed tech companies, and among them, the most notable is IBM (International Business Machines) Corp. plus Apple. Berkshire, of late, left IBM, but still possesses Apple stock. Buffett is recognized as the Oracle of Omaha, and he did set-up Berkshire India in the year 2011 and got partnered with Bajaj Allianz for selling insurance. Nonetheless, according to a report on CNN, Berkshire withdrew the partnership a couple of years later. The entry of Berkshire Hathways into India was long awaited plus the upcoming deal will spot a ringing confirmation of India’s tech ecosystem and Internet from the well-known investors, particularly since the nation’s start-up ecosystem has also allured a usual share of cynicism.
Insurance groups of Berkshire
Insurance, as well as reinsurance business activities, do get conducted via nearly 70 domestic plus foreign-based insurance companies. Insurance businesses of Berkshire propose insurance plus reinsurance of casualty risks and property commonly in the US. Additionally, due to the General Re acquisition, Berkshire insurance businesses include accident, health reinsurers, life, and internationally based casualty and property reinsurers. The best thing is the insurance companies of Berkshire maintain capital strength at remarkably high levels, and this strength distinguishes the insurance companies of Berkshire from their opponents.