Warren Buffett is a self-made billionaire whose net worth stands at $84 billion. He is the reason behind Berkshire Hathaway’s success and the owner of many small companies that it incorporates. Duracell and Dairy Queen are just two of the well-known companies that Buffett profits from.
So how did Berkshire Hathaway come to be? It is a name that most people did not know exist. This company is a conglomerate of other businesses. It owns top names such as Fruit of the Loom, and Geico. Although consumer never knew what Berkshire Hathaway was, they are very familiar with the names of the businesses who get their money. Creating this company was not easy, there were mistakes, interesting creations, and odd ideas. Buffett can attest to that but the company came together nonetheless.
It all started with just two textile companies on the East Coast. The names at that time were Berkshire Fine Spinning Associates and Hathaway Manufacturing. Horatio Hathaway and Stanton Seabury owned their perspective businesses and financially did really well during World War I, although Berkshire Fine Spinning Associates did a little bit better than the other business. After World War II, Berkshire did become unstable, and in 1955, it merged with Hathaway Manufacturing. This became Berkshire Hathaway. Seabury Stanton did not have the expertise to handle such a large company, and things began to look grim. Warren Buffett joined Berkshire Hathaway in 1952. He bought enough shares in the company to take over the management component. After taking over the company completely, Buffett moved to Omaha, Nebraska, and that is where it sits today.
Once Buffett’s investments began to pay off, Berkshire Hathaway became the financial conglomerate it is now. Buffett receives all credit for making the company strong. Berkshire Hathaway is not going anywhere.