Berkshire Hathaway Analysis Essay

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Warren Buffett is a legendary investor who now sits at the CEO position as well as Chairman and President of the multibillion dollar corporation known as Berkshire Hathaway. For convenience I will refer to Berkshire Hathaway as BH. BH is a conglomerate holding company which means that they specialize in investing across several different industries. Yahoo! Finance defines BH to be in the financial sector and their primary industry as Property and Casualty Insurance. Some of the other companies that BH owns and manages are GEICO Insurance, Helzberg Diamonds, Benjamin Moore & Co., and Dairy Queen. BH also owns large portions of stock in Heinz and Mars Incorporated. Due to the present day’s stock market volatility there would be …show more content…
When customers pay a premium on their insurance, BH then takes that premium paid and uses it to buy stakes in other companies. Which is how Berkshire Hathaway has been able to buy stakes in so many companies and essentially as well as metaphorically spin their straw into gold. For the more technical stock picker, it is a good thing to know that BH has had a steady appreciation over the years with the exception of 2008; being the largest decline known for BH. The good news is that unlike a lot of companies that suffered from the 2008 crisis BH came out of it head strong and has surpassed the previous price at which the decline began. These stocks are the type that long-term investors like. This is because they can survive crises such as the one six years ago. Moreover the long term investor is good for a company because usually these investors are the ones attending board meetings and placing votes that best further the company’s success. In contrast there is the short term investor who, most of the time, only cares about a profit and lacks the interest in the long term life of the company. This is not the case for BH, however. If an investor wants secure long term gains than BH is certainly the best choice. If someone begs to differ just take a look at some of the key statistics. Looking at the statistics of a company is what nearly every professional investor does. You

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