Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B) It is an interesting name. Today represents the bloc built by Warren Buffett. However, before Buffett buys the company, it was a failed clothing company. These clothing work was eventually closed under the Buffet Hour, which represents one of his most prominent failed investments.
A long period of good investment has turned into this failure into great success. However, within one year, there will be a very big change in the Hathaway.
Berkshire Hathaway is group. Luminous blocs often work in a few different business lines, and sometimes with their brand identity. Berkchire Hathaway took this model and ran with it. At the end of 2024, Berkshire Hathaway had 189 sub -companies!
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But this is not the entire story. The list, which includes 189 large insurance companies. Insurance companies collect insurance installments in advance and pay money to cover the losses in the future. Insurance premiums are invested so that money is required to finance payments. This is what he knows As “float” In Wall Street. Insurance companies can keep everything they earn on the bottom.
Berkchire Hathaway has always invested in floating shares in the stock market, with a large group of shares that increase its owned business. Some long -term holdings include the company coca cola(Nyse: ko)and American Express(NYSE: Axp)And Chevron(NYSE: CVX). This diversity is repeated in the company’s owned investments, in a large -scale investment portfolio.
Basically, the Hathaway Berkshire is something like a shared box. When you buy the arrow, you are effectively investing alongside CEO Warren Buffett. As the graph appears below, doing this has succeeded very well for long -term investors.
Therefore, from the perspective of the big image, Berkshire Hathaway is truly buys the Buffett investment approach. To summarize this approach briefly, Buffett loves to buy companies that run well while they are estimated in an attractive way and then kept in the long term to take advantage of their business growth. Easy to say, it is difficult to do. However, it is clear that Pavite has implemented his incredibly investment approach over time.
At the end of 2025, he will retire as the CEO of Hathaway, and hand over the assumption to Greg Abel. Since ABEL is not Buffett, the company will be different in nature one year from now. The question is: How different?
Good news on this front is that Pavite does not cut and run. The Chairman of the Board of Directors is scheduled to remain. Therefore, technically, the Pavite employee is still. Pavite generally takes an approach to your hands, but if ABEL is struggling, Buffett is likely to intervene to help.
There is also the fact that ABEL worked with Berkshire for more than two decades. So he is steeped in the Oracle approach or Omaha. Because a different person, there will be a difference in the way he is approaching the role of the CEO. But given his long association with the successful CEO, it also appears that he will do his best to integrate Warren Buffett’s teachings in everything he does.
As an investor, if you are worried that Pavite will lead to a significant change in Berkshire Hathaway the way it is running, then it may not happen. However, changing the CEO is a material, so investors must monitor the work regularly. The company will be different in an important way within a year, with ABEL intervention to fill the very large Buffett shoes. But the primary approach that was taken at the top of the company will not be completely different that Berkshire Hathaway will become a completely different company overnight.
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American Express is an advertising partner for Motley Fool Money. Robin Greg Buruer He has no position in any of the mentioned stocks. Motley Fool has positions in Berkshire Hathaway and Chevron. Motley deception has Disclosure.
