Who Owns Berkshire Hathaway Company?

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Who Owns Berkshire Hathaway?

Understanding Berkshire Hathaway's ownership is key to grasping its strategic direction and accountability. This conglomerate, transformed by Warren Buffett, began as a textile firm and evolved into a diversified powerhouse. Its headquarters are in Omaha, Nebraska.

The company's structure, heavily shaped by its principal architect, enables a long-term investment approach and decentralized management across its many subsidiaries. This includes insurance, rail, and energy sectors.

Who owns Berkshire Hathaway? This question delves into the company's foundational stakes, key investors, public shareholding dynamics, and historical shifts. A comprehensive Berkshire Hathaway PESTEL Analysis offers insight into these factors.

Berkshire Hathaway's origins trace back to the textile industry, with its earliest predecessor, the Valley Falls Company, established in 1839. The modern entity, Berkshire Hathaway Inc., was formed in 1955 through a merger. Warren Buffett began acquiring shares in the struggling company in 1962, eventually taking controlling ownership by 1965, marking a significant shift in its strategic direction.

Textile Industry Roots

Berkshire Hathaway's earliest predecessor, the Valley Falls Company, was founded in 1839. The company operated within the textile manufacturing sector for many decades.

Merger and Formation

The modern Berkshire Hathaway Inc. was established in 1955. This occurred through the merger of Hathaway Manufacturing Company and Berkshire Fine Spinning Associates.

Buffett's Entry

Warren Buffett started acquiring shares in the company in 1962. His initial purchases were made for his investment fund, Buffett Partnership Ltd.

Shift to Conglomerate

By 1965, Buffett gained controlling ownership of Berkshire Hathaway. This marked a pivotal moment, transforming the company into a holding company for diverse investments.

Early Ownership Dynamics

While the original textile operations had early backers, the significant equity distribution that defined the company's future began with Buffett's takeover. This reflected his value investing approach.

Strategic Transformation

Buffett's acquisition led to a strategic pivot away from textiles. The company's direction shifted towards becoming a conglomerate built on strategic investments and acquisitions.

The transition of Berkshire Hathaway from a struggling textile manufacturer to a diversified holding company was fundamentally driven by Warren Buffett's strategic acquisition and subsequent management. This shift in ownership and direction is a key element in understanding the Growth Strategy of Berkshire Hathaway, moving it away from its textile roots to become a powerhouse of investment and business ownership.

Key Milestones in Early Ownership

The early ownership of Berkshire Hathaway was characterized by a significant transition driven by Warren Buffett's investment philosophy and strategic actions.

• The company's origins date back to 1839 with the Valley Falls Company.
• Berkshire Hathaway Inc. was formed in 1955 through a merger.
• Warren Buffett began acquiring shares in 1962, purchasing them at approximately $7.50 per share.
• By 1965, Buffett secured controlling ownership due to a dispute with the then-manager, Seabury Stanton.
• This takeover marked the effective beginning of the modern Berkshire Hathaway conglomerate.

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Since Warren Buffett took control in 1965, Berkshire Hathaway's ownership has evolved from a textile manufacturer to a global conglomerate. The acquisition of National Indemnity Company in 1967 was pivotal, establishing the 'float' that underpins its investment strategy. By May 2025, the company's market capitalization surpassed $1 trillion.

Berkshire Hathaway's ownership is structured around its Class A (BRK.A) and Class B (BRK.B) common stock, both traded on the New York Stock Exchange. Warren E. Buffett remains the largest individual shareholder, holding 38.4% of the Class A voting shares, which translates to a 15.1% economic interest. Other significant individual shareholders include Susan A. Buffett and Ronald L. Olson. The company's Revenue Streams & Business Model of Berkshire Hathaway has been shaped by this ownership concentration, allowing for a consistent, long-term strategic focus.

Major Institutional Holders

Institutional investors collectively manage a significant portion of Berkshire Hathaway's stock. As of August 2025, over 1,467 institutional entities held more than 23 million Class A equivalent shares.

• Vanguard Group
• BlackRock
• State Street

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As of May 2025, Berkshire Hathaway's Board of Directors comprises 13 members. This group includes long-standing associates and independent directors, with the company's unique share structure significantly influencing major shareholder representation. Key leadership roles are held by Warren Buffett, Greg Abel, and Ajit Jain.

Berkshire Hathaway's voting power is concentrated due to its dual-class share system. Class A shares (BRK.A) hold substantially more voting rights than Class B shares (BRK.B). A Class B share carries 1/10,000th of the voting rights of a Class A share, despite representing 1/1,500th of the economic ownership. This structure gives Warren Buffett, through his significant Class A shareholdings, considerable influence over company decisions. The company mandates that directors maintain a 'significant investment in Berkshire shares relative to their resources,' and notably, directors do not receive stock-based compensation, aligning their interests with long-term shareholder value. Berkshire Hathaway limits shareholder communications to an annual Q&A session featuring Warren Buffett, Greg Abel, and Ajit Jain, ensuring a unified message and managing external influences.

Understanding Berkshire Hathaway's Governance

Berkshire Hathaway's board structure and voting power are distinct. The company emphasizes long-term value and director alignment with shareholders.

• Dual-class share system with Class A having superior voting rights.
• Directors are required to hold significant company shares.
• No stock-based compensation for directors.
• Limited shareholder communication to an annual Q&A.
• This governance model influences Competitors Landscape of Berkshire Hathaway.

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Over the past three to five years, Berkshire Hathaway's ownership profile has seen notable developments, particularly concerning capital allocation and leadership succession. In 2024, the company repurchased $2.9 billion worth of its stock, reflecting a belief that the shares were trading below their intrinsic value. However, in the first quarter of 2025, Berkshire Hathaway suspended stock buybacks for the third consecutive quarter, a departure from its previous 24-quarter streak, as the stock's valuation reached elevated levels.

A significant trend has been the substantial increase in Berkshire's cash and short-term Treasury bills, which surged by 84% over the past year to a record $347.68 billion as of March 31, 2025. This cash pile suggests a conservative stance amidst market conditions and a lack of compelling acquisition targets. In terms of portfolio adjustments, Berkshire Hathaway notably reduced its Apple stake by nearly 50% in the second quarter of 2024, selling $75.5 billion worth of stock, further trimming it in Q2 2025, though Apple remains its largest holding. Conversely, the company completed the acquisition of the remaining 20% interest in Pilot Travel Centers in January 2024, bringing its ownership to 100%.

Capital Allocation Strategy

Berkshire Hathaway's capital allocation has shifted, with a pause in stock buybacks due to elevated valuations. The company is holding a record amount of cash, indicating a cautious approach to acquisitions.

Portfolio Adjustments

Significant portfolio changes include a substantial reduction in the Apple stake. However, the company has achieved full ownership of Pilot Travel Centers.

Leadership Transition

Warren Buffett will step down as CEO on January 1, 2026, with Greg Abel set to take over. Buffett will remain Chairman, ensuring continuity in strategy and oversight.

Future Outlook

The company's long-term strategy, focused on equities and selective investments, is expected to continue under new leadership. This planned succession highlights the company's commitment to stability and its established approach to business.

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