Berkshire Hathaway.
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Outline:
 Introduction.
 Mission, Vision and Strategy.
 Corporate affairs.
 Businesses and investments.
 SWOT analysis.
 Current financial position of the corporation.
 Conclusion.
 References.
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Introduction.
 1839- Valley Falls Company was established by Oliver Chase.

1888- Hathaway Manufacturing Company was established by
Horatio Hathaway
 1889- Berkshire Cotton Manufacturing Company was
established.
 1929- Valley Falls merged with Berkshire Cotton Manufacturing
as Berkshire Fine Spinning Associates
 1955- Berkshire Fine Spinning Associates and Hathaway
Manufacturing merged together with the name as Berkshire
Hathaway.
 1970- Warren Buffet became the CEO and the largest
shareholder.
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Mission, Vision and Strategy.

Vision-" Berkshire Hathaway strives to be the
largest and most influential investment company in the world”.

Mission-Deliver the right parts exactly on time, exceed our internal
and external customer requirements through continuous
improvement, and provide a place for hard-working, dedicated,
knowledgeable and ethical people who believe in the company.

Strategy-A Fundamental Analysis of the Corporate Strategy of
Berkshire Hathaway Inc. In Relation To the Property and Casualty
Insurance Industry.
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CORPORATE AFFAIRS.
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Berkshire Hathaway shares- A class shares which have never
had stock split.
•
$294,380.00 for the highest-priced shares on May 18, 2018.
•
October 23, 2006- Shares closed over $100,000 for the first
time.
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February 16, 2010- Berkshire Hathaway acquired Burlington
Northern Santa Fe Corporation and replaced BNSF in the S&P
500
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2008Berkshire
Hathaway
invested
in
preferred
stock of Goldman Sachs as part of
a
recapitalization
of
the
investment bank
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As of July 13, 2016, Buffett owned 31.7%
aggregate voting power of Berkshire's shares
outstanding and 18.0% of the economic value of
those shares.
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The current members of the board of
directors of Berkshire Hathaway
are Warren
Buffett (Chairman), Charlie
Munger (Vice Chairman), Walter
Scott Jr, Thomas Scott
Murphy, Howard Graham
Buffet (Warren's son), Ronald Olson,
Charlotte Guyman, David
Gottesman, Bill Gates, Steve Burke,
Susan Decker, Meryil Wetmer, Ajit
Jain, and Greg Abel.
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Businesses and Investments.
 Insurance group.
 Utilities and energy group.
 Manufacturing, service and retailing.
 Finance and financial products.
 Investments.
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Insurance group.

Berkshire's insurance businesses provide insurance and
reinsurance of property and casualty risks primarily in the
United States.

As a result of the General Re acquisition in December 1998,
Berkshire's insurance businesses also includes life, accident,
and health reinsurers, as well as internationally based property
and casualty reinsurers.

All of Berkshire's major insurance subsidiaries are
rated AAA by Standard & Poor's Corporation, the highest
Financial Strength Rating assigned by Standard & Poor's, and
are rated A++ (superior) by A. M. Best with respect to their
financial condition and operating performance.
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Utilities and energy group.

Berkshire currently holds 89.8% of the Berkshire Hathaway Energy.

A major subsidiary of Berkshire Hathaway Energy is Northern
Powergrid, which operates in the UK.

On July 7, 2017, the company announced it would be acquiring Energy
Future Holdings.
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Manufacturing, service and retailing.
Manufacturing service and retailing
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Finance and financial products.
 Berkshire acquired Clayton Homes, a maker of modular
homes, storage trailers, chassis, intermodal piggyback
trailers and domestic containers.
 Clayton's finance business, (loans to manufactured home
owners), earned $206 million down from $526 million in
2007. Loan losses remain 3.6% up from 2.9%.
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Investments.
The invested
companies by BH
in.
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166 million shares and 3.3% of total stock of the Apple Corp. (31December, 2017.)
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Berkshire Hathaway owns 45.5 million shares of American Airlines.
SWOT Analysis of Berkshire Hathaway Inc. :
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Strength:
◦ 1.Strong brand name and good financial position.
◦ 2.High number of stakeholders and growing market
position.
◦ 3.Diversified portfolio
Weakness :
◦ 1.Cash flow is declining.
◦ 2.Over dependent on Warren Buffets image
Opportunity :
◦ 1.Expansion in other countries.
◦ 2.Diversifying portfolios for customers
Threats :
◦ 1.Changing government regulations and financial crisis like
recessions.
◦ 2.Natural calamities
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Current financial performance of the
corporation.
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Conclusion
 Upon investing it is important that you better
understand what is the investment is all about.
 You should like it.
 You must know it.
 Just like what buffet says focus on the “important”
and “KNOWABLE”
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