BERKSHIRE HATHAWAY

• Formerly called :Valley Falls Company

(1839–1955)
• Type :Public company
• Industry : Conglomerate
• Founded : 1839; 179 years ago
Cumberland, Rhode Island, U.S.
• Headquarters : Kiewit Plaza, Omaha,
Nebraska, U.S.
• Area served : Worldwide
• Founder : Oliver Chace
• CEO : Warren Buffett
 HISTORY
• Berkshire Hathaway traces its roots to a textile
manufacturing company established by Oliver
Chace in 1839 as the Valley Falls
Company in Valley Falls, Rhode Island.
• Chace had previously worked for Samuel Slater,
the founder of the first successful textile mill in
America. Chace founded his first textile mill in
1806.
• In 1929, the Valley Falls Company merged with
the Berkshire Cotton Manufacturing Company
established in 1889, in Adams, Massachusetts.
The combined company was known as Berkshire
Fine Spinning Associates.
 HISTORY
• In 1955, Berkshire Fine Spinning Associates merged
with the Hathaway Manufacturing Company
• Berkshire Hathaway had 15 plants employing over
12,000 workers with over $120 million in revenue
• In 1962, Warren Buffett began buying stock in
Berkshire Hathaway Eventually, Buffett acknowledged
that the textile business was waning and the
company's financial situation was not going to
improve.
• In 1964, Stanton made an oral tender offer of
$11​1⁄2 per share for the company to buy back Buffett's
shares. Buffett agreed to the deal.
• A few weeks later, Warren Buffett received the tender
offer in writing, but the tender offer was for only
$11​3⁄8.
 HISTORY
• Buffett later admitted that this lower,
undercutting offer made him angry. Instead of
selling at the slightly lower price, Buffett
decided to buy more of the stock to take
control of the company and fire Stanton
(which he did).
• However, this put Buffett in a situation where
he was now majority owner of a textile
business that was failing.
 HISTORY
• Buffett initially maintained Berkshire's core
business of textiles, but by 1967, he was
expanding into the insurance industry and
other investments.
 Businesses and investments

• Insurance group
• Utilities and energy group
• Manufacturing, service and retailing
– Clothing
– Building products
– Flight services
– Retail
– Media
– Real Estate
– Other non-insurance
 BUSINESSES AND INVESTMENTS

• Finance and financial products

• Investments
– Investment in Apple Inc.
– Investments in US airlines
– Prior Investments
Berkshire Hathaway companies
 PRODUCTS
• Products : Diversified investments, Property &
casualty insurance, Utilities, Restaurants, Food
processing, Aerospace, Toys, Media,
Automotive, Sporting goods, Consumer
products, Internet, Real estate
 BERKSHIRE HATHAWAY
• Berkshire Hathaway is the third largest public
company in the world
• The ninth largest conglomerate by revenue
and the largest financial services company by
revenue in the world.
• Revenue US$ 250.13 billion (2017)
• Number of employees : ~377,000 (2017)