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Berkshire Hathaway Essay

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Berkshire Hathaway From Wikipedia, the free encyclopedia Jump to: navigation, search Berkshire Hathaway Inc. Type Public (NYSE: BRKA, NYSE: BRKB) Founded 1839 (as Valley Falls Company) Founder Warren Buffett Headquarters Omaha, Nebraska Area served USA Key people Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and casualty insurance, Diversified investments Products Conglomerate focused on insurance Market cap US$ 196 Billion (2008) Revenue ▲ US$ 118.245 Billion (2007) Operating income ▲ US$ 20.161 Billion (2007) Net income ▲ US$ 13.213 Billion (2007) Total assets ▲ US$ 273.160 Billion (2007) Total equity ▲ US$ 120.733 Billion (2007) …show more content…

Buffett initially maintained Berkshire's core business of textiles, but by 1967, he was expanding into the insurance industry and other investments. Berkshire first ventured into the insurance business with the purchase of National Indemnity Company. In the late 1970s, Berkshire acquired an equity stake in the Government Employees Insurance Company (GEICO), which forms the core of its insurance operations today (and is a major source of capital for Berkshire Hathaway's other investments). In 1985, the last textile operations (Hathaway's historic core) were shut down. [edit] Berkshire facts Berkshire's Class A shares sold for $125,000 as of September 16, 2008, making them the highest-priced shares on the New York Stock Exchange, in part because they have never had a stock split. Shares closed over $100,000 for the first time October 23, 2006. Berkshire Class B shares trade at a fraction (1/30) of the Class A prices. Despite its size, Berkshire is not included in broad stock market indices such as the S&P 500. Berkshire's CEO, Warren Buffett, is respected for his investment prowess and his deep understanding of a wide spectrum of businesses. His annual chairman letters are read and quoted widely. Barron's Magazine named Berkshire the most respected company in the world in 2007 based on a survey of American money managers.[2] As of 2005, Buffett owned 38% of Berkshire Hathaway. Berkshire's Vice-Chairman

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