Berkshire Hathaway 2000 Annual Report Download - page 2

Business Activities
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a
number of diverse business activities. The most important of these is the property and
casualty insurance business conducted on both a direct and reinsurance basis through a
number of subsidiaries. Included in this group of subsidiaries is GEICO Corporation, the
sixth largest auto insurer in the United States and General Re Corporation, one of the four
largest reinsurers in the world.
Investment portfolios of insurance subsidiaries include meaningful equity ownership
percentages of other publicly traded companies. Investments with a market value in excess
of $1 billion at the end of 2000 include approximately 11% of the outstanding capital
stock of American Express Company, approximately 8% of the capital stock of The Coca-
Cola Company, approximately 9% of the capital stock of The Gillette Company,
approximately 18% of the capital stock of The Washington Post Company and
approximately 3% of the capital stock of Wells Fargo and Company. Much information
about these publicly-owned companies is available, including information released from
time to time by the companies themselves.
Numerous business activities are conducted through non-insurance subsidiaries.
FlightSafety International provides training of aircraft and ship operators. Executive Jet
provides fractional ownership programs for general aviation aircraft. Nebraska Furniture
Mart, R.C. Willey Home Furnishings, Star Furniture, and Jordan’s Furniture are
retailers of home furnishings. Borsheim’s, Helzberg Diamond Shops and Ben Bridge
Jeweler are retailers of fine jewelry. Scott Fetzer is a diversified manufacturer and
distributor of commercial and industrial products, the principal products are sold under the
Kirby and Campbell Hausfeld brand names.
In addition, Berkshire’s other non-insurance business activities include: Buffalo News,
a publisher of a daily and Sunday newspaper; See’s Candies, a manufacturer and seller of
boxed chocolates and other confectionery products; H.H. Brown, Lowell, Dexter and
Justin Brands, manufacturers and distributors of footwear under a variety of brand names;
International Dairy Queen, which licenses and services a system of nearly 6,000 stores
that offer prepared dairy treats, food, and other snack items; Acme Building Brands, a
manufacturer of face brick and concrete masonry products and ceramic and marble wall
tile; and CORT, a provider of rental furniture, accessories and related services.
In late 2000 and early 2001, Berkshire’s non-insurance business activities expanded
significantly through the acquisitions of Benjamin Moore, a leading formulator and
manufacturer of architectural and industrial coatings, Shaw Industries, the world’s largest
manufacturer of tufted broadloom carpet, and Johns Manville, a leading manufacturer of
insulation and building products.
Operating decisions for the various Berkshire businesses are made by managers of the
business units. Investment decisions and all other capital allocation decisions are made for
Berkshire and its subsidiaries by Warren E. Buffett, in consultation with Charles T.
Munger. Mr. Buffett is Chairman and Mr. Munger is Vice Chairman of Berkshire's Board
of Directors.
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