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The conglomerate also owns a slew of privately held business like Duracell batteries, Shaw flooring, Geico insurance, Clayton mobile homes, and Acme brick company just to name a few. The fact is, however, Berkshire is less like a mutualfund than perceived. It also invests in ways that most mutualfund managers simply can't.
Again, it isn't unusual for a company to operate as a conglomerate with businesses that span many industries, but the breadth of Berkshire Hathaway's diversification is vast, including utilities, retail stores, manufacturing companies, and railroads, among many, many others. Learn More Those companies span a surprising range of industries.
Warren Buffett takes a bite of Domino's In mid-November, large hedge funds, mutualfunds, and holding companies file their 13F filings , disclosing their buys and sells made during the prior quarter. 14, Warren Buffett conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B)
Because this isn’t like, we’re not a hedge fund, we’re not a mutualfund. And that, you know, really finishing it all out was only very recently we’ve added services along the way, but really getting it like stabilized and going about 2009. I mean, tell us about that.
And again, some history, until 2009 or ‘10, Warren Buffett actually spoke out against buybacks. And I think, in a sense, to complete the story, you need to bring in what happened in 2009, in fact, the previous decade to these FAANG stocks — RITHOLTZ: Which was amazing. This is a conglomerate in the 1970s. RITHOLTZ: Right.
There's nothing about the individual businesses within the conglomerate that's all that difficult to wrap one's head around. As noted, Berkshire Hathaway is a conglomerate. Usually conglomerates have a few related businesses under one corporate umbrella. That said, the company's most important business had a great year in 2024.
Sign Up For Free The case for buying Berkshire Hathaway Berkshire Hathaway is technically a conglomerate : It operates multiple distinct businesses under its corporate umbrella. However, it is like no other conglomerate on Wall Street given the huge diversity of those businesses. It's also holding $334 billion in cash and equivalents.
You shouldn't think about Berkshire Hathaway the same way you think about other companies Berkshire Hathaway is a conglomerate , with a massive list of businesses under its umbrella. Conglomerates usually do a few related things. That includes both individual stocks and the portfolio of controlled companies within the conglomerate.
Indeed, the company he runs, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) , is more like a mutualfund than a traditional corporation. But that's not a great fit because, in reality, Berkshire Hathaway is a giant conglomerate. Conglomerates usually do a few similar things. Image source: Getty Images.
Shares of his Berkshire Hathaway regularly outperform the S&P 500 , achieving something only a handful of mutualfund managers ever even occasionally do. In addition to be being one of its longest-held positions, it's also the conglomerate's fourth-biggest holding, currently worth nearly $30 billion.
Under Buffett's leadership, the struggling textile company transformed into a conglomerate spanning industries like insurance, energy, and consumer goods. The new class was introduced to prevent fund managers from creating mutual-fund-style structures that would divide Berkshire's stock into smaller, more accessible slices.
And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, youd have $365,174 !* Dylan Lewis: Bill, do you see an X-TikTok conglomerate like that? Seven out of 10 positions in actively managed mutualfund are no longer the same by December 31 from the first day of that year.
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