Berkshire Hathaway 2008 Annual Report Download - page 2

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Business Activities
Berkshire Hathaway Inc. is a holding company owning subsidiaries that engage in a number of diverse
business activities including property and casualty insurance and reinsurance, utilities and energy, finance,
manufacturing, services and retailing. Included in the group of subsidiaries that underwrite property and casualty
insurance and reinsurance is GEICO, the third largest auto insurer in the United States and two of the largest
reinsurers in the world, General Re and the Berkshire Hathaway Reinsurance Group. Other subsidiaries that
underwrite property and casualty insurance include National Indemnity Company, Medical Protective Company,
Applied Underwriters, U.S. Liability Insurance Company, Central States Indemnity Company, Kansas Bankers
Surety, Cypress Insurance Company, BoatU.S. and several other subsidiaries referred to as the
“Homestate Companies.”
MidAmerican Energy Holdings Company (“MidAmerican”) is an international energy holding company
owning a wide variety of operating companies engaged in the generation, transmission and distribution of energy.
Among MidAmerican’s operating energy companies are Northern Electric and Yorkshire Electricity;
MidAmerican Energy Company; Pacific Power and Rocky Mountain Power; and Kern River Gas Transmission
Company and Northern Natural Gas. In addition, MidAmerican owns HomeServices of America, a real estate
brokerage firm. 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) and transportation equipment and furniture leasing (XTRA and CORT). McLane Company is a
wholesale distributor of groceries and nonfood items to convenience stores, wholesale clubs, mass
merchandisers, quick service restaurants and others. The Marmon Group is an international association of
approximately 130 manufacturing and service businesses that operate independently within diverse business
sectors. Shaw Industries is the world’s largest manufacturer of tufted broadloom carpet.
Numerous business activities are conducted through Berkshire’s other manufacturing, services and retailing
subsidiaries. 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, Russell, Vanity Fair, Garan,
Fechheimer, H.H. Brown Shoe Group and Justin Brands manufacture, license and distribute apparel and
footwear under a variety of brand names. FlightSafety International provides training to 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.
Borsheims, Helzberg Diamond Shops and Ben Bridge Jeweler are retailers of fine jewelry.
In addition, other manufacturing, service and retail businesses 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; 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 5,700 stores that offer prepared dairy treats and food; The Pampered Chef, the
premier direct seller of kitchen tools in the U.S.; Forest River, a leading manufacturer of leisure vehicles in the
U.S.; Business Wire, the leading global distributor of corporate news, multimedia and regulatory filings; Iscar
Metalworking Companies, an industry leader in the metal cutting tools business; TTI, Inc., a leading distributor of
electronic components and Richline Group, a leading jewelry manufacturer.
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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