What does Berkshire Hathaway do?
Berkshire Hathaway operates differently from most companies. Instead of selling a single product or service, it functions as a holding company, meaning it owns a collection of businesses and investments across many industries.
Buffett uses the cash Berkshire generates from its operations and investments to acquire companies outright or buy shares of publicly traded businesses he believes will grow in value over time.
Berkshire owns full or majority stakes in businesses across insurance, railroads, utilities, energy, manufacturing, and retail. Well-known brands under the Berkshire umbrella include GEICO, BNSF, Pampered Chef, Pilot Travel Centers, Fruit of the Loom, and See's Candies.
The company also holds large positions in publicly traded companies, such as Apple (AAPL +0.55%), Bank of America (BAC +1.16%), Coca-Cola (KO +0.41%), Chevron (CVX -2.29%), American Express (AXP +0.15%), and Kraft Heinz (KHC +0.45%). This mix of wholly owned companies and stock investments gives Berkshire flexibility -- it can reinvest profits, make acquisitions, or hold cash if Buffett and his team believe better opportunities will come later.
This long-term, disciplined approach to reinvesting capital is core to how Berkshire aims to grow shareholder value over time.