Berkshire Hathaway

Berkshire Hathaway is an American multinational holding company headquartered in Omaha, Nebraska. It is best known for combining a large portfolio of operating companies with a substantial investment portfolio and a decentralized management model. The group owns and controls businesses in insurance and reinsurance, freight rail transportation, utilities and energy, manufacturing, service companies, consumer products and retailing. Major businesses associated with Berkshire include GEICO, BNSF Railway, Berkshire Hathaway Energy, General Re, National Indemnity, Dairy Queen, See's Candies, Nebraska Furniture Mart, NetJets, FlightSafety International, Fruit of the Loom, Shaw Industries, Johns Manville, Benjamin Moore, Clayton Homes, Precision Castparts and several other operating companies. The company traces its corporate ancestry to textile businesses established in the nineteenth century, including the Valley Falls Company founded by Oliver Chace in 1839 and later Berkshire Fine Spinning Associates and Hathaway Manufacturing Company. Berkshire Hathaway was created through the 1955 merger of Berkshire Fine Spinning Associates and Hathaway Manufacturing Company. The merged textile company operated plants in New England but suffered from declining competitiveness, mill closures and layoffs during the 1950s and 1960s. Warren Buffett began purchasing Berkshire Hathaway shares in 1962 through Buffett Partnership Ltd. He initially viewed the company as a potential liquidation or working-capital investment, but a dispute over the price offered for his shares led him to increase his stake and take control in 1965. Buffett later described the textile purchase as a major investment mistake because the underlying business continued to deteriorate. Rather than liquidating Berkshire, however, he used its corporate structure and retained capital to build a diversified collection of businesses. The final textile operations closed in 1985. Berkshire's transformation began with its entry into insurance through the 1967 acquisition of National Indemnity Company. Insurance became the financial foundation of the group because premiums collected before claims are paid create investable funds known as float. Berkshire expanded its insurance platform through investments in GEICO, its full acquisition of GEICO in 1996, and the 1998 acquisition of General Re. The group also developed substantial reinsurance capabilities through National Indemnity and other units. Berkshire's operating philosophy emphasizes permanent ownership, financial conservatism, decentralized decision-making and the autonomy of subsidiary managers. Operating companies generally retain their own brands and management teams, while Berkshire's corporate office remains unusually small for a conglomerate of its size. The parent company allocates capital, sets broad governance expectations and manages the investment portfolio, but it does not operate most subsidiaries through a centralized consumer-facing master brand. Berkshire's investment record under Buffett made the company a global reference point for value investing and long-term capital allocation. From 1965 through 2023, Berkshire's per-share market value compounded at a substantially higher rate than the S&P 500, according to the company's shareholder reports. Its Class A shares have historically not been split, resulting in one of the highest per-share prices among publicly traded companies. In August 2024, Berkshire became the first non-technology U.S. company to exceed a market valuation of $1 trillion. Charlie Munger served as Berkshire's vice chairman from 1978 until his death in 2023 and was Buffett's principal intellectual and strategic partner. Ajit Jain became vice chairman responsible for insurance operations in 2018, while Greg Abel became vice chairman responsible for non-insurance operations. Abel succeeded Buffett as president and chief executive officer on January 1, 2026. Buffett remained chairman of the…

Berkshire Hathaway's history begins with the textile industry in New England. Oliver Chace founded the Valley Falls Company in Rhode Island in 1839, establishing the corporate lineage that ultimately contributed to Berkshire Hathaway. Hathaway Manufacturing Company was founded later by Horatio Hathaway. In 1955, Hathaway Manufacturing and Berkshire Fine Spinning Associates merged to create Berkshire Hathaway. The combined company had a substantial manufacturing footprint and thousands of employees, but its textile operations were already facing intense competitive pressure. The merged business struggled through the late 1950s and 1960s. Mills were closed, employment declined and capital investment could not reverse the deterioration of the New England textile industry. Warren Buffett began purchasing Berkshire Hathaway shares in 1962 through his investment partnership. He expected that the company might liquidate mills and distribute capital, allowing shareholders to realize a gain. When Berkshire manager Seabury Stanton offered to repurchase Buffett's shares at a price below what Buffett believed had been agreed orally, Buffett responded by buying additional stock and taking control of the company in 1965. Stanton and his son subsequently left the business. Buffett later characterized the textile acquisition as one of his greatest investment errors. The company continued to operate textile mills for two decades, partly because management attempted to preserve the business and employment, but the economics remained unfavorable. Berkshire finally closed its last textile operations in 1985. The corporate shell, however, became the platform for a much more successful capital-allocation enterprise. The pivotal transformation began in 1967, when Berkshire acquired National Indemnity Company. Insurance gave Berkshire access to premium float and a business model capable of producing investable funds before claims were paid. Buffett used this financial base to build an insurance group and to purchase operating companies that could generate durable cash flows. Berkshire also established its principal headquarters in Omaha, where Buffett had maintained his investment office since 1962. Berkshire acquired See's Candies in 1972, an early example of the group's preference for businesses with strong brands, pricing power and modest capital requirements. The company later invested in GEICO in 1976 while the auto insurer was under financial pressure, eventually acquiring the remaining shares in 1996. GEICO became one of Berkshire's most recognizable consumer businesses and a major direct-to-consumer insurance operation. During the 1970s and 1980s, Berkshire also expanded into newspapers, furniture retailing, apparel, footwear and diversified manufacturing. The acquisition of Nebraska Furniture Mart in 1983 and Scott Fetzer in 1986 illustrated the group's willingness to buy established businesses and leave day-to-day management in place. Berkshire's purchase of Fechheimer Brothers and later H.H. Brown extended the group into uniforms, workwear and footwear. The 1990s brought a period of accelerated diversification. Berkshire acquired full control of GEICO, FlightSafety International, Dairy Queen and NetJets. It also purchased General Re in 1998 in a large stock transaction. General Re strengthened Berkshire's reinsurance operations, although Buffett later acknowledged that Berkshire had paid too much for the company. In 1999, Berkshire acquired MidAmerican Energy Holdings, which became the foundation of Berkshire Hathaway Energy. The energy platform subsequently expanded through investments and acquisitions including PacifiCorp and Northern Powergrid. In the 2000s, Berkshire broadened its manufacturing and consumer portfolio. Acquisitions included Benjamin Moore, Johns Manville, Shaw Industries, MiTek, Albecca, Fruit of the Loom, Russell Corporation, Garanimals, The Pampered Chef, CTB International, Clayton Homes and other businesses. The group also acquired Precision Castparts in 2016, one of its largest transactions, adding aerospace and industrial manufacturing capabilities. Berkshire entered the newspaper business more extensively through BH Media Group, purchasing the Omaha World-Herald and other newspapers, followed by a larger acquisition from Media General. The newspaper operations were later sold to Lee Enterprises in 2020, with Berkshire providing financing. The disposition reflected Berkshire's willingness to exit sectors whose economics had weakened, even when the group had previously supported them. Corporate governance remained highly decentralized. Subsidiary managers generally retained operational authority, while Berkshire's Omaha headquarters maintained a small staff focused on capital allocation, risk oversight, financial reporting and shareholder communication. Buffett's annual shareholder letters and the annual meeting in Omaha made Berkshire a central institution in the value-investing community. Charlie Munger, who became vice chairman in 1978, was Buffett's closest strategic partner and helped shape Berkshire's preference for acquiring excellent businesses at sensible prices rather than merely statistically cheap companies. Munger died in 2023. Ajit Jain and Greg Abel assumed increasingly important leadership responsibilities, with Jain overseeing insurance operations and Abel overseeing non-insurance operations. In May 2025, Berkshire's board approved Abel as Buffett's successor. Abel became CEO on January 1, 2026, while Buffett continued as chairman. The transition began a new phase for Berkshire while preserving its core model of permanent capital, decentralized management and diversified ownership.

1. 2026Greg Abel becomes CEO

   Greg Abel succeeded Warren Buffett as president and CEO on January 1, 2026, with Buffett remaining chairman.

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2. 2024Market capitalization exceeds $1 trillion

   Berkshire became the first non-technology U.S. company to surpass a market valuation of $1 trillion.

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3. 2023Charlie Munger dies

   Charlie Munger, Berkshire's vice chairman and Buffett's closest long-term partner, died at age 99.

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4. 2020BH Media publishing assets sold

   Lee Enterprises acquired Berkshire Hathaway's newspaper operations and The Buffalo News, while Berkshire extended financing to Lee.

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5. 2016Precision Castparts acquired

   Berkshire acquired aerospace and industrial manufacturer Precision Castparts in one of its largest transactions.

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6. 2014MidAmerican renamed Berkshire Hathaway Energy

   The energy division adopted the Berkshire Hathaway Energy name, aligning the operating platform more closely with its parent company.

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7. 2005PacifiCorp acquired

   Berkshire acquired PacifiCorp for approximately $5.1 billion in cash and assumed additional debt and preferred stock obligations.

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8. 1999MidAmerican Energy Holdings acquired

   Berkshire acquired MidAmerican Energy Holdings, the predecessor of Berkshire Hathaway Energy.

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9. 1998General Re acquired

   Berkshire acquired General Re in a stock transaction valued at approximately $22 billion, significantly expanding its reinsurance operations.

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10. 1996GEICO becomes wholly owned

    Berkshire acquired the remaining 49% of GEICO for approximately $2.3 billion, making the auto insurer a wholly owned subsidiary.

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11. 1985Textile operations closed

    Berkshire ended its original textile manufacturing operations after decades of declining industry economics.

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12. 1976Initial investment in GEICO

    Berkshire invested in GEICO while the insurer was experiencing financial difficulty.

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13. 1972See's Candies acquired

    Berkshire purchased See's Candies for $25 million, creating a long-term consumer-brand investment that became emblematic of Berkshire's acquisition approach.

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14. 1967Entry into insurance

    Berkshire acquired National Indemnity Company for $8.6 million, beginning its transformation into an insurance-centered holding company.

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15. 1965Buffett gains control

    Warren Buffett increased his holdings after a disputed tender offer and took control of Berkshire Hathaway.

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16. 1962Warren Buffett begins buying Berkshire shares

    Buffett Partnership Ltd. began accumulating Berkshire Hathaway stock as Buffett evaluated the company's assets and possible mill liquidation.

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17. 1955Berkshire Hathaway created through textile merger

    Berkshire Fine Spinning Associates and Hathaway Manufacturing Company merged to form Berkshire Hathaway.

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18. 1839Valley Falls Company founded

    Oliver Chace founded the Valley Falls Company in Rhode Island, establishing an important predecessor in Berkshire Hathaway's corporate lineage.

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A permanent-capital conglomerate and investment holding company distinguished by decentralized operating management, insurance float, conservative financing and long-term ownership of businesses. Berkshire is positioned primarily for shareholders and business sellers rather than as a single consumer-facing brand.

• Insurance and reinsuranceFinancial services1967

  Berkshire's insurance platform includes property and casualty insurers, specialty insurers and reinsurance businesses. GEICO focuses primarily on private passenger automobile insurance sold directly to consumers in the United States. National Indemnity and General Re provide commercial insurance and reinsurance capabilities, while other Berkshire insurance companies support workers' compensation, specialty risks and large-scale catastrophe coverage. Insurance float is central to Berkshire's capital-allocation model because premiums can be invested before claims are paid.

• BNSF RailwayRail transportation2010

  BNSF Railway is Berkshire's principal freight railroad business and one of the largest rail networks in North America. It transports consumer, industrial, agricultural and energy-related commodities across a network serving the United States and Canada. The business provides Berkshire with exposure to long-lived infrastructure, recurring freight demand and the North American industrial economy.

• Berkshire Hathaway EnergyUtilities and energy1999

  Berkshire Hathaway Energy operates regulated electric and natural-gas utilities, energy transmission assets and renewable-energy businesses. Its portfolio has included U.S. utilities such as PacifiCorp and MidAmerican Energy as well as Northern Powergrid in the United Kingdom. The division also historically included related residential real-estate brokerage and mortgage-service activities through HomeServices of America.

• See's CandiesConfectionery1972

  See's Candies manufactures and sells boxed chocolates and other confectionery products, primarily through its branded retail and direct-sales channels. Berkshire acquired the company in 1972 and has used it as a long-running example of the economic value of a trusted brand, customer loyalty and pricing power supported by relatively modest capital requirements. Sales are highly seasonal, with a large share generated during the November and December holiday period.

• Dairy QueenRestaurants and food service1997

  Dairy Queen operates a large franchised restaurant system offering frozen desserts, beverages, prepared foods and snacks. The platform also includes Orange Julius and Karmelkorn concepts. Berkshire acquired Dairy Queen in 1997 and generally preserves the brand's independent operating identity while providing the financial support and ownership stability associated with the larger group.

• NetJetsAviation services1998

  NetJets provides fractional aircraft ownership, leasing and related private-aviation services. The company pioneered fractional ownership for business aircraft and operates a managed fleet serving corporate and high-net-worth customers. Berkshire acquired the business, formerly known as Executive Jet Aviation, in 1998 and has retained it as a specialized service business within the broader portfolio.

• FlightSafety InternationalAviation training1997

  FlightSafety International provides professional pilot training, flight-simulator instruction and aviation training services. Its customers include commercial, corporate, military and government aviation operators. The business uses advanced simulators and training systems and has operated as a Berkshire subsidiary since its acquisition in 1997.

• Nebraska Furniture MartFurniture retail1983

  Nebraska Furniture Mart is a large-format retailer of furniture, appliances, electronics, flooring and related home products. Berkshire acquired the company in 1983 and has allowed it to maintain a distinct local-market identity. The business is part of Berkshire's consumer and retail portfolio, which also includes other furniture and home-furnishings companies.

• Fruit of the LoomApparel2002

  Fruit of the Loom is an apparel brand known for underwear, basics, casualwear and activewear. Berkshire acquired the company in 2002 and subsequently owned related apparel and footwear businesses, including Russell Corporation and Brooks Sports for periods of time. The brand operates within Berkshire's manufacturing, service and retailing portfolio rather than as a unified Berkshire consumer label.

• Clayton HomesManufactured housing and financial services2003

  Clayton Homes designs, manufactures and sells manufactured and modular homes and provides related financing and housing services. Its activities connect Berkshire's manufacturing, construction and consumer-finance interests. The company is one of the group's significant operating businesses and serves the U.S. housing market through factories, dealerships and lending operations.

• Shaw IndustriesFlooring manufacturing2001

  Shaw Industries designs and manufactures carpet, resilient flooring, hardwood, laminate and related products for residential and commercial customers. Berkshire acquired majority control in 2001 and the remaining interest in 2002. Shaw sells through multiple brands, trade names and private-label arrangements and is one of Berkshire's principal building-products businesses.

• Precision CastpartsAerospace and industrial manufacturing2016

  Precision Castparts manufactures complex metal components and systems for aerospace, power generation and industrial markets. The business produces parts requiring specialized engineering, materials expertise and certification. Berkshire acquired Precision Castparts in 2016, expanding its presence in high-value industrial manufacturing and aerospace supply chains.

• Benjamin MooreArchitectural coatings2000

  Benjamin Moore formulates, manufactures and sells architectural coatings, paints and related products primarily in the United States and Canada. Berkshire acquired the company in 2000. The business has traditionally emphasized independent dealers and specialty distribution rather than relying exclusively on major mass-market retail chains.

• GEICO Gecko advertising platform

  United States

  GEICO's advertising platform uses the GEICO Gecko as a recurring character in direct-to-consumer automobile-insurance marketing. The campaign helped make Berkshire's largest consumer insurance subsidiary recognizable to a broad U.S. audience while retaining GEICO as the customer-facing brand.

  Outcome. The GEICO Gecko became one of the insurer's best-known advertising assets and reinforced the subsidiary's direct-response marketing model.

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• Berkshire Hathaway annual shareholder meeting

  United States · Global investor audience

  Berkshire's annual shareholder meeting in Omaha functions as a major investor-communications event. It combines management presentations, shareholder questions and subsidiary retail activities and has become closely associated with Berkshire's shareholder culture.

  Outcome. The meeting developed into a globally followed investor event and strengthened Berkshire's public identity as a long-term capital-allocation institution.

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• 2025Approve CEO succession planStrategy

  Warren Buffett announced that he intended to retire as chief executive officer after six decades leading Berkshire. Greg Abel had already overseen the group's non-insurance operations and had been identified as the leading successor.

  What changed. The board approved Greg Abel as president and CEO effective January 1, 2026, while Warren Buffett remained chairman.

  Aftermath. The succession created a new leadership era while maintaining Berkshire's decentralized operating model and shareholder-oriented governance approach.

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• 2020Exit newspaper publishingM&A

  Berkshire's newspaper assets faced structural pressure from declining print advertising and changing media consumption.

  What changed. Berkshire sold BH Media's publications and The Buffalo News to Lee Enterprises for cash while providing Lee with substantial financing.

  Aftermath. The transaction reduced Berkshire's direct exposure to newspaper operations but preserved a financial relationship with Lee Enterprises.

  Sale price. $140 million cash; Berkshire loaned $576 million to Lee Enterprises (2020)

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• 2016Acquire Precision CastpartsM&A

  Berkshire continued to seek high-quality industrial companies with specialized capabilities and durable customer relationships.

  What changed. Berkshire acquired Precision Castparts, adding a major aerospace and industrial-components manufacturer to its portfolio.

  Aftermath. The transaction expanded Berkshire's manufacturing exposure and increased its participation in aerospace supply chains.

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• 2010Acquire control of BNSF RailwayM&A

  Berkshire sought a large, essential-service business with long-lived infrastructure and exposure to North American economic activity.

  What changed. Berkshire completed the acquisition of Burlington Northern Santa Fe Corporation and brought BNSF Railway into the group.

  Aftermath. BNSF became Berkshire's principal railroad business and a major contributor to its operating earnings and asset base.

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• 1999Build the regulated energy platformM&A

  Berkshire pursued businesses with durable assets, predictable cash flows and opportunities for reinvestment.

  What changed. Berkshire acquired MidAmerican Energy Holdings, later renamed Berkshire Hathaway Energy.

  Aftermath. The acquisition created a major regulated-utility and energy-infrastructure platform that later expanded into the United Kingdom and other markets.

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• 1998Acquire General ReM&A

  Berkshire sought to expand its international and large-risk reinsurance capabilities.

  What changed. Berkshire acquired General Re in a transaction valued at approximately $22 billion, paid with Berkshire Class A shares.

  Aftermath. General Re expanded Berkshire's reinsurance platform, although Buffett later said that Berkshire had overpaid for the acquisition.

  Transaction value. Approximately $22 billion (December 1998)

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• 1996Acquire the remaining GEICO sharesM&A

  Berkshire had invested in GEICO during its financial difficulties and later became its majority owner.

  What changed. Berkshire purchased the approximately 49% of GEICO that it did not already own for about $2.3 billion.

  Aftermath. GEICO became a wholly owned subsidiary and one of Berkshire's most visible consumer businesses.

  Purchase price. Approximately $2.3 billion (January 1996)

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• 1985Close the textile operationsStrategy

  Berkshire's textile mills remained structurally uncompetitive despite efforts to improve productivity and invest in equipment.

  What changed. The company shut its remaining textile operations and redirected capital toward insurance and other businesses.

  Aftermath. The closure ended Berkshire's original industrial identity and confirmed its transition into a diversified holding company.

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• 1967Acquire National Indemnity and enter insuranceM&A

  Berkshire needed a more attractive source of recurring capital than its declining textile operations. National Indemnity provided an entry point into property and casualty insurance and reinsurance.

  What changed. Berkshire acquired National Indemnity Company for approximately $8.6 million.

  Aftermath. Insurance became Berkshire's financial foundation and supplied the float used to support investments and later acquisitions.

  Acquisition price. $8.6 million (March 1967)

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• 1965Take control rather than accept disputed tender offerStrategy

  After Berkshire's management offered to repurchase Buffett's shares at a price below what Buffett believed had been agreed, Buffett chose to increase his ownership instead of selling. The decision converted an initially opportunistic investment into managerial control of the textile company.

  What changed. Buffett acquired enough shares to take control and replaced the existing leadership, beginning the transformation of Berkshire into an investment holding company.

  Aftermath. The textile business ultimately closed, but the corporate structure became the platform for Berkshire's insurance and diversified operating-company strategy.

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• 2023Allegations concerning Warren Buffett's personal tradingControversy

  A ProPublica report alleged that Warren Buffett's personal investment transactions sometimes involved companies that Berkshire Hathaway bought or sold during nearby periods. The allegations concerned Buffett's personal portfolio rather than a proven Berkshire corporate violation. Charlie Munger publicly rejected the suggestion that Buffett had acted improperly.

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• 2011David Sokol and Lubrizol trading controversyControversy

  David Sokol, then a senior Berkshire executive and a potential successor to Warren Buffett, purchased shares of Lubrizol before Berkshire announced its agreement to acquire the company. Berkshire's internal review concluded that Sokol had not violated insider-trading laws, but the episode raised significant questions about conflicts of interest, disclosure and executive conduct. Sokol resigned from Berkshire in 2011.

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• 2026Greg Abel begins tenure as Berkshire Hathaway CEO

  Greg Abel became Berkshire Hathaway's president and chief executive officer on January 1, 2026, after serving as vice chairman for non-insurance operations since 2018.

  Leadership change
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• 2026Berkshire Hathaway reports operations across insurance, rail, energy, manufacturing, services and retail

  The 2025 annual report describes Berkshire as a holding company with subsidiaries operating in numerous unrelated business sectors and identifies Greg Abel as president and CEO.

  Other
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• 2026Berkshire's possible reduction of its Kraft Heinz investment draws attention

  Reports indicated that Berkshire Hathaway might consider selling some or all of its large Kraft Heinz position, a potential signal of changing portfolio priorities under Greg Abel. The reported possibility was not treated here as a completed transaction.

  M&A
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• 2025Greg Abel appointed president and chief executive officer effective January 1, 2026

  Berkshire Hathaway's board approved Greg Abel as Warren Buffett's successor. Buffett remained chairman of the board, creating a formal separation between the CEO and chairman roles.

  Leadership changeOther
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• 2024Berkshire Hathaway becomes first non-technology U.S. company valued above $1 trillion

  Berkshire's market capitalization exceeded $1 trillion, reflecting the scale of its insurance, operating-company and investment assets.

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• 2020Berkshire Hathaway sells BH Media publications to Lee Enterprises

  Lee Enterprises acquired Berkshire Hathaway's newspaper publishing assets and The Buffalo News for cash, while Berkshire provided substantial financing to Lee and retained ownership of television station WPLG at that time.

  M&A
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1. Berkshire Hathaway 2025 Annual Report
2. Berkshire Hathaway official website
3. Berkshire Hathaway 2026 proxy statement
4. Berkshire Hathaway 2025 Form 8-K succession announcement
5. Berkshire Hathaway
6. Warren Buffett
7. Todd Combs
8. Associated Press report on Kraft Heinz stake