BERKSHIRE HATHAWAY INC

Berkshire Hathaway is a diversified holding company that acquires and operates businesses across insurance, rail, utilities, manufacturing, services and retail, while also holding large public-equity positions. It generates revenue from insurance premiums and underwriting, operating income from wholly owned subsidiaries (e.g., BNSF, Berkshire Hathaway Energy), and investment income and capital gains from its marketable securities portfolio.^[1]

Business Segments

• Insurance and other (property/casualty, reinsurance, GEICO; plus manufacturing, services and retail): accounts for the bulk of consolidated revenues (approximately 72% of reported revenues).^[2]
• Railroad, utilities and energy (BNSF Railway; Berkshire Hathaway Energy): a sizable, capital‑intensive segment contributing roughly 28% of consolidated revenues.^[2]
• Investment and derivative contract gains/losses: reported separately and can materially affect consolidated earnings though not classified as operating segment revenue.^[2]

Competitive Position

• Insurance float and underwriting scale provide a low‑cost source of investable capital and underwriting/alignment advantages that support long‑term investing.^[3]
• Decentralized operating model and long track record of disciplined capital allocation create durable operational flexibility and a reputation that helps secure attractive acquisition and investment opportunities.^[4]

Investment Considerations

• Opportunity — Diversified cash flows and large investable resources allow sizable, patient capital deployment across public and private markets, supporting growth and buybacks.^[2]
• Risk — Size and scale limit the company’s ability to find outsized acquisition or investment opportunities; growing private capital competition can compress deal terms and returns.^[5]
• Risk — Exposure to insurance underwriting cycles, regulatory constraints on subsidiaries, and operational risks (including cybersecurity and macroeconomic sensitivity) are material and disclosed in company risk filings.^[6]
• Governance/succession — The company’s performance is sensitive to capital‑allocation and leadership continuity; succession and long‑term stewardship are key structural considerations for investors.^[5]