Berkshire Hathaway

Warren Buffett first invests in Berkshire Hathaway in 1962. Initially a textile manufacturing firm, Buffett saw potential in the struggling company and began acquiring its stock. By 1965, Buffett had taken control, and he began a strategy of diverting its cash flow to other investments and acquisitions. This marked the beginning of Berkshire Hathaway's transformation into the multinational conglomerate it is today.

In 1985, Berkshire Hathaway shut down its textile operations, the original business of the company. The decision came after years of struggling with profitability in the textile division, and it allowed Warren Buffett to focus on insurance and other investments. This was a pivotal moment in the company's history, marking the end of its origins and a clear shift towards becoming a diversified holding company.

Berkshire Hathaway completed the acquisition of General Re, a reinsurance company, in 1998. The acquisition was valued at roughly $22 billion and marked a significant expansion into the reinsurance business. This move also positioned Berkshire as a powerhouse in the insurance sector and was part of Buffett's long-term strategy to diversify and solidify Berkshire's position in the industry.

Berkshire Hathaway acquired the 77.4% of Burlington Northern Santa Fe (BNSF) that it did not already own, in a $44 billion deal. This was Berkshire’s largest acquisition to date and marked a significant investment in the U.S. economy. BNSF is one of the largest freight rail networks in North America, and this acquisition underscored Warren Buffett's confidence in the long-term prospects of rail transportation and the economic future of the United States.

In 2013, Berkshire Hathaway announced a significant revision to its share repurchase program, declaring willingness to buy back shares at a premium of up to 20% above book value. This marked a signal of confidence from Buffett and was a strategic move to utilize the company’s cash reserves when investment opportunities were not compelling. The buyback program indicates that Buffett believed the shares were undervalued and represented a good use of capital.

Berkshire Hathaway, through its energy subsidiary MidAmerican Energy, acquired NV Energy in 2013 for around $5.6 billion. NV Energy, a utility company in Nevada, aligned with Berkshire's growing focus on energy investments. This acquisition was part of a broader strategy to invest in regulated utilities, providing stable, long-term revenue and growth opportunities, and expanding its presence in the energy sector.

On August 10, 2015, Berkshire Hathaway announced it would acquire Precision Castparts Corp., a leading aerospace and industrial company, for $37.2 billion. This deal was Berkshire's biggest purchase ever and highlighted Buffett’s focus on bolstering its portfolio with companies having significant competitive advantages and durable profits. Precision Castparts' expertise in manufacturing complex metal components suited Berkshire's investment strategy.

In 2018, Berkshire Hathaway announced a partnership with Amazon and JPMorgan Chase to create a new healthcare venture aimed at lowering healthcare costs for their employees. This groundbreaking collaboration sought to address the challenges of rising health care expenses and improve health system outcomes by leveraging the strengths of each organization. It demonstrated an attempt to innovate outside of traditional sectors.

The 2020 annual meeting of Berkshire Hathaway, often dubbed the 'Woodstock for Capitalists,' was held virtually for the first time due to the COVID-19 pandemic. Warren Buffett addressed shareholders online, discussing the impact of the pandemic on the economy and Berkshire’s businesses. Buffett reassured investors about the company’s financial health, despite having to sell its holdings in airline stocks, reflecting the pandemic’s severity on the industry.

The 2021 annual meeting of Berkshire Hathaway took place virtually, continuing the format from the previous year due to ongoing concerns from the COVID-19 pandemic. Warren Buffett and Charlie Munger took the stage, addressing various facets of the company's operations and responding to shareholder questions. Buffett expounded on Berkshire's performance, future outlooks, and the state of the industries in which the company was involved.