Berkshire Hathaway 2003 Annual Report Download - page 2

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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, the fifth largest
auto insurer in the United States, General Re, one of the four largest reinsurers in the
world, and the Berkshire Hathaway Reinsurance Group.
Numerous business activities are conducted through non-insurance subsidiaries.
Included in the non-insurance subsidiaries are several large manufacturing businesses.
Shaw Industries is the world’ s largest manufacturer of tufted broadloom carpet. Benjamin
Moore is a formulator, manufacturer and retailer of architectural and industrial coatings.
Johns Manville is a leading manufacturer of insulation and building products. Acme
Building Brands is a manufacturer of face brick and concrete masonry products. MiTek
Inc. produces steel connector products and engineering software for the building
components market. Fruit of the Loom, Garan, Fechheimer, H.H. Brown, Lowell, Justin
Brands and Dexter manufacture, license and distribute apparel and footwear under a
variety of brand names. McLane Company is a wholesale distributor of groceries and
nonfood items to convenience stores, wholesale clubs, mass merchandisers, quick service
restaurants and others.
FlightSafety International provides training of aircraft and ship operators.
NetJets 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. Berkshire’ s finance and financial products
businesses primarily engage in proprietary investing strategies (BH Finance), commercial
and consumer lending (Berkshire Hathaway Credit Corporation and Clayton Homes),
transportation equipment and furniture leasing (XTRA and CORT) and risk management
activities (General Re Securities).
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; Scott Fetzer, a diversified
manufacturer and distributor of commercial and industrial products, the principal
products are sold under the Kirby and Campbell Hausfeld brand names; Albecca, a
designer, manufacturer, and distributor of high-quality picture framing products; CTB
International, a manufacturer of equipment for the livestock and agricultural industries;
International Dairy Queen, a licensor and service provider to about 6,000 stores that
offer prepared dairy treats and food; and The Pampered Chef, the premier direct seller of
kitchen tools in the U.S.
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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