Core Insights - Berkshire Hathaway, led by Warren Buffett since 1965, has delivered nearly 20% compounded annual returns, turning a $100 investment into over $5.5 million today [1] - The company is undergoing a leadership transition, with Buffett set to step down at the end of 2025, while maintaining a diversified portfolio and a significant cash reserve for future investments [2][9] Business Operations - Berkshire Hathaway operates a diversified group of businesses across major sectors, including insurance, freight rail transportation, and utilities [5] - Core businesses include GEICO, Berkshire Hathaway Reinsurance Group, Burlington Northern Santa Fe railroad, and Berkshire Hathaway Energy, along with various manufacturing, service, and retail operations [6] Insurance Operations - A significant aspect of Berkshire's operations is its insurance businesses, which generate "float"—a pool of premiums that can be invested before claims are paid, providing a low-cost capital source [7] - The float has grown to approximately $171 billion by the end of 2024, allowing for substantial investment opportunities [7]
Could Buying Berkshire Hathaway Stock Today Set You Up for Life?