Berkshire Hathaway Essay

Introduction

Berkshire Hathaway Inc. is an American multinational conglomerate holding company widely known for its control and leadership by Warren Buffet. The company owns subsidiaries involved in various business activities. Their most important business is insurance which is conducted on both a primary and reinsurance basis. Berkshire Hathaway Homestate Companies is a group of six insurance carriers that are part of the Berkshire Hathaway group of insurance companies. Type Public

Founded 1839; 178 years ago

Founder Oliver Chace

Headquarters Omaha, Nebraska, USA

Key Person Warren Buffet (Chairman, President and CEO)

Products Diversified investments, property and casualty insurance, Utilities, Restaurants, Food processing, Aerospace, Media,

• What is the current financial situation of Berkshire Hathaway Inc.?

• What is the significance of doing this paper?

• What did I find from analyzing all the requirements?

Objectives:

1. To find out about Berkshire Hathaway’s operations.

2. To evaluate the financial performance of Berkshire Hathaway.

3. To understand its research contributions and claims handling proceedings.

4. To evaluate the position of Berkshire Hathaway by doing SWOT analysis.

Product

Berkshire Hathaway Homestate Companies is a group of six insurance carriers that are part of the Berkshire Hathaway group of insurance companies. Berkshire’s insurance businesses provide insurance and reinsurance of property and casualty risks primarily in the United States. Their unparalleled financial strength and superior claims-paying ability sets BHHC apart from other insurance companies in the industry.

They focus on four main insurance products:

• Commercial Auto

• Commercial Property

• Public Entity

• Workers

Berkshire 's insurance operations generated more than $5.6 billion in after-tax income in 2013, almost 30% of the company 's profits.

Conclusion

Berkshire Hathaway is the property and insurance company, which has solved the financial problems of the clients. This has made the financial process of its clients very convenient and profit giving. The company has assets in different companies through direct investment. It has faced many economic and financial recessions and has sufficient number of the shareholders. If this company starts its business in other companies, it can grow its business in the world market and can have the global appearance. The company has to face various competitors in the market, which can challenge its business.

Facts:

Berkshire 's subsidiaries are very autonomous

Berkshire Hathaway and its subsidiaries employ more than 330,000 people, but Buffett and the staff at headquarters play essentially no role in regular operations of those subsidiaries.

BHHC has grown from a regional organization to a national insurance group, offering insurance products from coast to coast.

PRINCIPAL COMPETITORS

The Blackstone Group L.P.; HM Capital Partners LLC; Investcorp Bank B.S.C.; Kohlberg Kravis Roberts