Berkshire Hathaway 2013 Annual Report Download - page 2

Business Activities
Berkshire Hathaway Inc. is a holding company owning subsidiaries that engage in a number of diverse
business activities including insurance and reinsurance, freight rail transportation, utilities and energy, finance,
manufacturing, services and retailing. Included in the group of subsidiaries that underwrite insurance and
reinsurance is GEICO, the second largest private passenger 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, Berkshire Hathaway
Homestate Insurance Companies, Medical Protective Company, Applied Underwriters, U.S. Liability Insurance
Company, Central States Indemnity Company, BoatU.S., the Guard Insurance Group and Berkshire Hathaway
Specialty Insurance Company.
Burlington Northern Santa Fe (“BNSF”) operates one of the largest railroad systems in North America. In
serving the Midwest, Pacific Northwest and the Western, Southwestern and Southeastern regions and ports of the
U.S., BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural
resource industries. 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. MidAmerican’s principal operating energy companies are: MidAmerican Energy
Company, PacifiCorp and NV Energy; Northern Powergrid; Kern River Gas Transmission Company and
Northern Natural Gas; and MidAmerican Renewables. In addition, MidAmerican owns HomeServices of
America, a real estate brokerage firm.
Numerous business activities are conducted through Berkshire’s manufacturing services, retailing and
finance subsidiaries. The Marmon Group is an international association of approximately 160 manufacturing and
service businesses that operate independently within diverse business sectors. The Lubrizol Corporation is a
specialty chemical company that produces and supplies chemical products for transportation, industrial and
consumer markets. IMC International Metalworking Companies (Iscar) is an industry leader in the metal cutting
tools business. McLane Company is a wholesale distributor of groceries and nonfood items to discount retailers,
convenience stores, quick service restaurants and others. Berkshire’s finance and financial products businesses
primarily engage in proprietary investing strategies, consumer lending (Clayton Homes) and transportation
equipment and furniture leasing (XTRA and CORT).
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 Brick 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,
Justin Brands and Brooks Sports manufacture, license and distribute apparel and footwear under a variety of
brand names. FlightSafety International provides training to aircraft 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: The Buffalo News and BH Media
Group (publisher of The Omaha World-Herald and 29 other daily newspapers); 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; Larson-Juhl, a designer, manufacturer and distributor of high-
quality picture framing products; CTB, a manufacturer of equipment for the livestock and agricultural industries;
International Dairy Queen, a licensor and service provider to over 6,300 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; TTI, Inc., a leading distributor of electronic components; Richline Group, a
leading jewelry manufacturer; and Oriental Trading Company, a direct retailer of party supplies, school supplies
and toys and novelties. Berkshire also has a major economic interest in Heinz, one of the world’s leading
marketers and producers of food 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.
************