Company DescriptionBerkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
How the Company Makes MoneyBerkshire Hathaway makes money through a diverse range of revenue streams stemming from its various subsidiaries and investments. A significant portion of its revenue comes from its insurance operations, which include companies such as GEICO, General Re, and Berkshire Hathaway Reinsurance Group. These insurance businesses generate income through underwriting profits and investment of the premiums collected. Additionally, Berkshire Hathaway owns a substantial equity portfolio, including large stakes in companies like Apple, Coca-Cola, and Bank of America, which provide dividends and capital appreciation. The company's non-insurance businesses, such as BNSF Railway, Berkshire Hathaway Energy, and its manufacturing, service, and retailing operations, also contribute significantly to its earnings. These businesses generate income through the sale of goods and services, leveraging their market positions and operational efficiencies. Berkshire's success is further bolstered by its decentralized management structure, allowing subsidiaries to operate independently while benefiting from the financial strength and strategic guidance of the parent company.