Warren Buffett and Berkshire Hathaway

Berkshire Hathaway is a conglomerate organization with many businesses that they own that are on the Dow Jones and S&P 500. This Fortune 500 company and its CEO of Berkshire Hathaway Warren Buffett has had a long history with the company and that let him be the biggest shareholder and become owner and CEO of the organization.

Never count on being CEO or primary owner of Berkshire Hathaway, Warren Buffett ended up becoming the head of the organization by a disagreement with the former president of Berkshire Hathaway, Seasbury Staton. In the 1960s Warren Buffett decided to buy stocks in the fledgling company. Even though the business had been declining for years in the textile industry Berkshire Hathaway still looked like a seemingly profitable business to Warren Buffett. So he decided to start buying up stocks in the business at $7.50.

As Warren was buying up the many stocks in the company Seasbury Staton saw that Warren Buffett was becoming very interested in buying up the stocks in the organization. So he decided to make Warren Buffett an offer of buying up the stock that he had bought at $11.75. Warren became interested in it and decided he would sell but when he saw this Staton was trying to con him and buy the stocks for $11.35; it made him very upset and he decided to start buying up more of the stocks. Essentially, becoming the majority owner of the organization, which allowed him to get rid of all the upper management employees that he felt was corrupting the organization.

This move of buying up the stocks in Berkshire Hathaway sent Warren Buffett into a new stratosphere. Helping him gain billions of dollars in years to come from his investments in Berkshire Hathaway.

Leave a Reply

Your email address will not be published. Required fields are marked *