Understanding Berkshire Hathaway's Market Cap and Net Worth

Berkshire Hathaway's Massive Market Cap and Net Worth (Detailed)

Wanna know Warren Buffett's Berkshire Hathaway worth? From Dairy Queen to Duracell batteries, Fruit of the Loom pants to GEICO insurance, Berkshire Hathaway owns brands you use every day. The Oracle of Omaha has made Berkshire Hathaway profitable via smart investment and acquisitions. Apple and Google get headlines, but Berkshire's market worth is bigger. How did Buffett build and run his empire? Let's explore how Berkshire Hathaway became so wealthy.

Key Points

  • Berkshire Hathaway is a market-capitalized giant. 

  • The conglomerate strategy and varied variety of subsidiary firms have allowed it to develop and remain tremendously profitable under Warren Buffett for decades.

  • Berkshire Hathaway's chairman and CEO holds the impressive title of the fifth-wealthiest person globally, with a mind-boggling $118.3 billion, as reported by  Forbes.

Warren Buffett, The Genius Behind Berkshire Hathaway

Warren Buffett, the wizard of investments at Berkshire Hathaway, is renowned for his financial genius. As a young entrepreneur, he delighted his hometown with fizzy drinks and sweet treats. At just 11, he dipped his toes into the stock market. 

  1. By 14, he was already filing tax returns, earning a grand total of $35.The generous Oracle of Omaha has pledged 99% of his fortune to charitable causes. 

  2. Over half of his $45.5 billion Berkshire Hathaway shares were given in June 2022. It follows his $4 billion gift to the Bill & Melinda Gates Foundation Trust and four family charities. 

How much is Warren Buffet's Net Worth?

Warren Buffett's wealth has skyrocketed by $16 billion this year, bringing him abundant prosperity. Berkshire Hathaway's chairman and CEO, aged 93, is the fifth-wealthiest person globally, with a staggering $118.3 billion, according to the Bloomberg Billionaires Index. He outshines Zuckerberg, Brin, and Ballmer in fortune.

How Much Is Berkshire Hathaway Worth?

Berkshire Hathaway's cash hit a record $157 billion as operating profitability rose 40%. Omaha-based firm operating earnings rose 40.6% to $10.761 billion in the latest quarter. Berkshire's cash holdings hit a record $157.2 billion in September, surpassing the third quarter of 2021's $149.2 billion. 

While buybacks halted, Berkshire shares reached a record high throughout the quarter. After repurchasing shares for $1.1 billion, the corporation spent roughly $7 billion in nine months. Over 14% of Berkshire Class A shares rose this year. Shares fell approximately 6% after reaching an all-time high on September 19.

Berkshire Hathaway's Enormous Market Cap

Renowned investor Warren Buffett is the head of Berkshire Hathaway, a sizable international conglomerate holding corporation. With $772.53B  in market worth, Berkshire Hathaway may be the world's most valuable firm. 

Berkshire Hathaway's enormous market cap reflects the huge value Buffett and his team have created and continue to build through a patient, long-term value investment philosophy.

How Berkshire Hathaway Makes Money? 

If you're curious how Berkshire Hathaway became one of the largest companies in the world, it comes down to a few key factors.

1. The Divisions of Berkshire Hathaway

Berkshire has six business segments with revenue and EBT numbers. In FY 2021, these divisions generated $32.2 billion before taxes on $276.4 billion in revenues. We don't include Berkshire's investment and derivatives portfolio profits and losses. A $327 million "corporate, eliminations and other" adjustment was made to segment revenue of $276.4 billion to match the company's total consolidated revenue.

2. Insurance

Berkshire's insurance ventures encompass:

  • GEICO offers private passenger car insurance.
  • Berkshire Hathaway Primary Group: Insuring businesses with property and casualty policies.
  • Berkshire Hathaway Reinsurance Group is your go-to for all your reinsurance needs. Excess-of-loss, quota-share, facultative.
  • Investment earnings from the insurance industry
  • Revenue rose 8.3% to $75.1 billion in FY 2021, but EBT fell 3.0% to $6.6 billion. Revenue was over a quarter, while EBT was almost a fifth of profit.

3. BNSF Railway

Berkshire's BNSF Railway maintains a major North American freight rail system. BNSF Railway transports coal, consumer, industrial, and agricultural goods.
In FY 2021, BNSF Railway's revenue jumped 11.6% to $23.3 billion and EBT 15.7% to $7.9 billion. Despite accounting for only 8% of Berkshire's revenue, rail transport contributed 24% of EBT.

4. Berkshire Hathaway Energy

Energy and real estate brokerage companies of Berkshire Hathaway Energy operate worldwide. The segment's FY 2021 sales jumped 18.8% to $25.0 billion and EBT 28.4% to $3.2 billion. EBT was 10% of overall EBT and 9% of group income.

5.McLane Company

McLane distributes wholesale to convenience shops, discount retailers, wholesale clubs, pharmacies, and more. It's divided into grocery, restaurant, and beverage distribution. In FY 2021, revenue rose 5.6% to $49.5 billion, while EBT fell 8.4% to $230 million. McLane accounts for 18% of sales but 1% of EBT.

Is Berkshire Hathaway the Richest Company in the World?

Omaha-based Berkshire Hathaway is a worldwide corporate holding business. Berkshire Hathaway's market worth reached $783.52 billion in November 2023! Berkshire Hathaway is the 8th most valuable business globally via market valuation. 

Berkshire Hathaway reached the top 10 global firms in 2021. Although Berkshire Hathaway has a huge market cap, it merely represents its outstanding shares. Berkshire Hathaway owns more than 60 subsidiary companies.

The Bottom Line

Well, there you have it - Berkshire Hathaway's Net Worth. Berkshire Hathaway is an investment behemoth with a market valuation larger than those of several countries. The conglomerate is set to thrive for ages. When thinking about the world's biggest companies, keep in mind Berkshire Hathaway - it might just reign supreme.

Olivia Johnson 01 Jan, 2024

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