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Berkshire Hathaway Inc.

BRK.A Financial Insurance Diversified

Berkshire Hathaway Inc.’s revenue for fiscal 2025 (year ended December 2025) was $371.4 billion, roughly unchanged from fiscal 2024. In the quarter to June 2026, revenue grew 10.0%, EPS grew 107.2%, free cash flow grew 6.56% and total debt rose 1.24%, each against the same quarter a year earlier. Insiders bought in the last twelve months.

798,000.00 8,514.00 +1.08%
Market cap
$1.13T
P/E
20,005×
Fwd P/E
23.8×
Dividend yield
—
F-score
4/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Berkshire Hathaway Inc. (BRK.A) Business Profile

Updated before January 2025

Company Overview

Berkshire Hathaway Inc. (BRK.A) is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company was originally founded in 1839 as the Valley Falls Company, a textile manufacturing firm. In 1955, it merged with Hathaway Manufacturing Company to form Berkshire Hathaway. However, the company’s transformation into a diversified conglomerate began in 1965 when Warren Buffett, through his investment partnership, acquired control of the company. Under Buffett’s leadership, Berkshire Hathaway shifted its focus from textiles to investments in a wide array of industries, becoming one of the largest and most successful companies in the world.

Warren Buffett, often referred to as the “Oracle of Omaha,” has served as the Chairman and CEO of Berkshire Hathaway since 1970. His investment philosophy, which emphasizes long-term value and acquiring high-quality businesses, has been instrumental in the company’s growth. Vice Chairman Charlie Munger has also played a pivotal role in shaping the company’s strategy. Together, Buffett and Munger have built Berkshire Hathaway into a conglomerate with a market capitalization exceeding $700 billion as of 2023.

Core Business Segments

Berkshire Hathaway operates through a diverse range of business segments, reflecting its status as a conglomerate. These segments include:

1. Insurance

Berkshire Hathaway’s insurance operations are among its most significant business segments. The company owns several insurance subsidiaries, including:

  • GEICO: One of the largest auto insurers in the United States, known for its competitive pricing and extensive advertising campaigns.
  • Berkshire Hathaway Reinsurance Group: Provides reinsurance coverage to other insurance companies.
  • Berkshire Hathaway Primary Group: Offers specialty insurance products.
  • General Re: A leading global reinsurer.

The insurance segment generates significant “float,” which refers to the premiums collected upfront that can be invested before claims are paid out. This float has been a key source of investment capital for Berkshire Hathaway.

2. Utilities and Energy

Through its subsidiary, Berkshire Hathaway Energy, the company owns and operates a range of energy businesses, including:

  • Electric utilities in the United States, such as PacifiCorp and MidAmerican Energy.
  • Renewable energy projects, including wind and solar power.
  • Natural gas pipelines and storage facilities.

This segment underscores Berkshire Hathaway’s commitment to sustainability and renewable energy.

3. Manufacturing, Service, and Retail

Berkshire Hathaway owns a diverse portfolio of manufacturing, service, and retail businesses, including:

  • Precision Castparts: A leading manufacturer of aerospace components.
  • Marmon Holdings: A group of manufacturing and service businesses.
  • Duracell: A well-known battery manufacturer.
  • Fruit of the Loom: A major apparel brand.
  • BNSF Railway: One of the largest freight railroads in North America.

4. Financial Services

Berkshire Hathaway has significant investments in financial services, including:

  • Ownership stakes in major banks such as Bank of America.
  • Investments in payment companies like American Express.

5. Equity Investments

Berkshire Hathaway is renowned for its equity investment portfolio, which includes substantial stakes in companies like Apple, Coca-Cola, and Kraft Heinz. These investments contribute significantly to the company’s earnings through dividends and capital appreciation.

Business Model

Berkshire Hathaway’s business model is built on diversification and long-term value creation. The company generates revenue through:

  • Insurance Premiums: Collected from its insurance operations.
  • Operating Income: Derived from its subsidiaries in manufacturing, retail, and energy.
  • Investment Income: Earned from its equity portfolio and fixed-income investments.

The company’s decentralized management structure allows its subsidiaries to operate independently while benefiting from Berkshire Hathaway’s financial strength and reputation. This approach fosters innovation and efficiency across its diverse businesses.

Strategic Direction

Berkshire Hathaway’s strategic direction focuses on:

  • Sustainability: Expanding its renewable energy portfolio through Berkshire Hathaway Energy.
  • Acquisitions: Identifying and acquiring high-quality businesses that align with its long-term investment philosophy.
  • Technology Investments: Increasing its exposure to technology companies, as evidenced by its significant stake in Apple.
  • Succession Planning: Preparing for leadership transitions, with Vice Chairmen Greg Abel and Ajit Jain positioned as potential successors to Warren Buffett.

Competitive Landscape

Berkshire Hathaway competes across multiple industries, facing competition from:

  • Insurance: Companies like Allstate, Progressive, and State Farm.
  • Energy: Utilities such as Duke Energy and NextEra Energy.
  • Railroads: Union Pacific and CSX Corporation.
  • Investments: Asset management firms like BlackRock and Vanguard.

Despite this competition, Berkshire Hathaway’s financial strength, diversified portfolio, and disciplined investment approach provide it with a competitive edge.

Risk Factors

Key risks facing Berkshire Hathaway include:

  • Market Volatility: Fluctuations in the stock market can impact the value of its equity investments.
  • Regulatory Changes: New regulations in the insurance or energy sectors could affect its operations.
  • Economic Downturns: A global recession could reduce demand for its products and services.
  • Leadership Transition: The eventual retirement of Warren Buffett and Charlie Munger poses a potential risk to investor confidence.

Recent Developments

Recent developments at Berkshire Hathaway include:

  • Increased Renewable Energy Investments: The company has expanded its wind and solar energy projects.
  • Stock Buybacks: Berkshire Hathaway has repurchased shares, signaling confidence in its valuation.
  • New Acquisitions: The company continues to acquire businesses that align with its investment philosophy.
  • Global Economic Impact: The COVID-19 pandemic and geopolitical tensions have influenced its operations and investment decisions.

Investment Considerations

Strengths

  • Diversified business portfolio.
  • Strong financial position with significant cash reserves.
  • Proven leadership and investment philosophy.
  • Consistent long-term growth.

Risks

  • Dependence on key leaders like Warren Buffett.
  • Exposure to market volatility.
  • Regulatory and economic risks.

Conclusion

Berkshire Hathaway Inc. is a global powerhouse with a diversified portfolio of businesses and investments. Its disciplined approach to value creation, coupled with its financial strength, positions it for continued success. While challenges such as leadership transitions and market volatility remain, the company’s long-term outlook remains positive, making it an attractive option for investors seeking stability and growth.