Headed by renowned investor Warren Buffett, Berkshire Hathaway (BRK.A,BRK.B) is a holding company involved in multiple industries. As such, it faces a variety of competitors.
Here are some of the sectors Berkshire is involved in and a selection of its leading rivals.
Key Takeaways:
- Due to Berkshire Hathaway's diverse holdings, competitors are found in a variety of fields.
- In the diversified holding sector, Berkshire competes against firms such as Jefferies Financial Group.
- Berkshire Hathaway is also a rival of large insurance firms such as Allstate Corporation.
- Berkshire is sometimes considered a management investment company and therefore competes with players like BlackRock.
- It's also seen by some as a private equity firm, contending with the likes of KKR & Co.
Berkshire Hathaway Competition: An Overview
Warren Buffett is Berkshire Hathaway's main investor and serves as chair and CEO. The publicly-traded company's many other investors include billionaires such as Bill Gates, founder and former CEO of Microsoft Corporation, and Mexican business magnate Carlos Slim.
Beyond insurance, Berkshire's holdings range across the food, apparel, and utilities sectors. Other assets include jewelers and furniture retailers.
In the diversified holding sector, Berkshire competes against firms such as Jefferies Financial Group (JEF). As many of its assets are insurance subsidiaries, Berkshire Hathaway is also a rival of large insurance firms such as Allstate Corporation (ALL).
Berkshire is sometimes considered a management investment company, competing with players like BlackRock, Inc. (BLK), and a private equity firm, contending with the likes of KKR & Co., Inc. (KKR).
On May 1, 2021, the vice chair of Berkshire Hathaway, Charlie Munger, unofficially announced that Warren Buffett would be succeeded as CEO by Greg Abel when Buffett eventually steps down. Abel is CEO of Berkshire Hathaway Energy and vice chair in charge of noninsurance operations.
Investment Banking
Jefferies Financial Group (formerly Leucadia National Corporation) is a competitor of Berkshire Hathaway where investments are concerned. With a similar business model, Jefferies is often called the Baby Berkshire.
While its stock is much lower-priced and it has nowhere near the holdings that Berkshire Hathaway possesses, Jefferies is successful at acquiring promising assets at less than fair value, and building their long-term growth.
Jefferies has holdings in a variety of industries, including the real estate, retail, energy, and telecommunications sectors. The company is also a 50% owner with Berkshire Hathaway in a real estate lending joint venture called Berkadia.
Insurance
Berkshire Hathaway relies heavily on its investments in the insurance business. The company competes through its Geico holding with some of the same personal insurance lines as Allstate, such as auto and property coverage. Berkshire also owns reinsurance giant Gen Re.
Allstate's insurance assets include Square Trade, an extended warranty provider, and National General, a specialist in insuring commercial drivers such as truck and taxi drivers.
Investment Management
Although Berkshire Hathaway is not officially a management investment company, it effectively plays in this space by managing a portfolio of securities for its investors.
BlackRock is a Berkshire competitor in this sector. It's the world's largest public investment firm with around $8.5 trillion in assets as of 2022. Unlike Berkshire Hathaway, BlackRock does not participate in proprietary trading.
Also, BlackRock's customer base is limited to institutional and retail investors, such as pension plans, mutual funds, insurance companies, and charities. Like other management investment firms, BlackRock provides formal mechanisms that allow investors to pool their capital with that of other investors to purchase professionally managed groups of diversified securities.
Private Equity
Some might not view Berkshire Hathaway as a private equity firm. However, reports indicate private equity titan Henry Kravis once referred to Berkshire as the perfect private equity model, due to its massive amounts of cash and publicly traded shares for acquisitions. Kravis is the co-founder of KKR, a highly substantial player in the private equity sector.
In fact, much like KKR and other private equity companies, Berkshire Hathaway is indeed a source of investment capital from wealthy individuals and institutions for investing in and acquiring equity ownership in companies.
However, private equity firms tend to be more direct about raising these funds and managing the money to ensure positive returns for shareholders.
Why Is Allstate Considered a Berkshire Hathaway Competitor?
The Allstate Corporation is a major American insurance company that owns a variety of insurance company brands. Berkshire Hathaway's biggest generator of profit is its insurance component, which includes GEICO. They both operate in the property/casualty insurance market. They vie for business from much of the same customer base. That's why Allstate is seen as a Berkshire Hathaway competitor.
What Is BlackRock?
BlackRock, Inc. is the world's largest asset management, with about $8.5 trillion under management as of Q2 2022. Based on Berkshire Hathaway's similar portfolio management role, Berkshire Hathaway and BlackRock can be considered competitors.
What Is Berkshire Hathaway's Standing in the Insurance Sector?
Berkshire Hathaway is the second largest insurance company in the U.S. with total assets of over $873 billion. Only Prudential Financial is larger, with more than $940 billion in total assets.
FAQs
The main competitors of Berkshire Hathaway include Berkshire Hathaway (BRK. B), JPMorgan Chase & Co. (JPM), Bank of America (BAC), Chubb (CB), Progressive (PGR), American International Group (AIG), Travelers Companies (TRV), Allstate (ALL), Arch Capital Group (ACGL), and The Hartford Financial Services Group (HIG).
Who is Berkshire Hathaway biggest competitor? ›
The main competitors of Berkshire Hathaway include Berkshire Hathaway (BRK. B), JPMorgan Chase & Co. (JPM), Bank of America (BAC), Chubb (CB), Progressive (PGR), American International Group (AIG), Travelers Companies (TRV), Allstate (ALL), Arch Capital Group (ACGL), and The Hartford Financial Services Group (HIG).
What company mimics Berkshire Hathaway? ›
Jefferies Financial Group (formerly Leucadia National Corporation) is a competitor of Berkshire Hathaway where investments are concerned.
What are Berkshire Hathaway's 5 main stocks? ›
Top Warren Buffett Stocks By Size
- Bank of America (BAC), 1.03 billion.
- Apple (AAPL), 915.6 million.
- Coca-Cola (KO), 400 million.
- Kraft Heinz (KHC), 325.6 million.
- Occidental Petroleum (OXY), 211.7 million.
- American Express (AXP), 151.6 million.
- Chevron (CVX), 132.4 million.
- HP (HPQ), 120.9 million.
Nvidia stock has more than doubled in 2023.
The chip company currently has a market cap of $722 billion as of Tuesday and is the fifth-largest U.S. company. That beats out Berkshire Hathaway (BRK. A, BRK. B), which has a market cap of $709 billion.
Who are Berkshire Hathaway Energy competitors? ›
Competitor comparison
- Duke Energy Corp Headquarters. United States of America. No. of employees. ...
- Pacific Gas and Electric Co Headquarters. United States of America. No. of employees. ...
- American Electric Power Co Inc Headquarters. United States of America. No. ...
- Edison International Headquarters. United States of America. No.
Berkshire Bank competitors include Macquarie Group, M&T Bank Corporation, Vontobel, AMP and Bank Of Montreal.
Who is the biggest investor in Berkshire Hathaway? ›
Berkshire Hathaway Inc. (BRK. B), led by billionaire investor and CEO Warren Buffett, is a diversified holding company whose subsidiaries are involved in insurance, freight rail transportation, energy generation and distribution, manufacturing, and retailing.
Why is Berkshire Hathaway unique? ›
It has a market capitalization of over $715 billion and is the sixth-largest public company in the world. Berkshire Hathaway's success is largely due to Buffett's value investing strategy, and its annual shareholder meetings have become a mecca for value investing proponents.
Is BlackRock the same as Berkshire Hathaway? ›
BlackRock, Inc., is one of the world's leading providers of investment management services and has a significant stake in Berkshire Hathaway.
Share of Berkshire's Portfolio
Apple is the world's most valuable public company and Warren Buffet's largest stock holding.
Does Warren Buffett own Tesla stock? ›
Buffett hasn't avoided Tesla because he dislikes the company's CEO, Elon Musk. He recently called Musk "a brilliant, brilliant guy." So why doesn't Buffett own Tesla stock? Here's the biggest reason.
What was Warren Buffett's best stock? ›
Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. (AAPL), Bank of America Corp (BAC), Chevron (CVX), The Coca-Cola Company (KO), and American Express Company (AXP). Apple is Berkshire's largest holding, accounting for 39% of its stock portfolio.
Why does Berkshire Hathaway do so well? ›
Berkshire Hathaway holds a diversified basket of companies in dependable industries. The company's massive cash pile is an additional safety net. The stock's attractive valuation makes it a no-brainer for investors seeking safety.
Does Bill Gates own Berkshire Hathaway? ›
Bill Gates's position in Berkshire Hathaway is currently worth $6.34 Billion. That's 16.84% of their entire equity portfolio (2nd largest holding). The first Berkshire Hathaway trade was made in Q2 2010. Since then Bill Gates bought shares thirteen more times and sold shares on 38 occasions.
How is Berkshire Hathaway different? ›
Key Takeaways. Berkshire Hathaway Class A is the company's original stock offering, known for its stratospheric price per share. Berkshire Hathaway Class B shares, first issued in 1996, are more modestly priced and have a correspondingly modest share of equity value in the company.
What stock is considered the mini Berkshire Hathaway? ›
Boston Omaha (ticker code BOMN) is similar to Berkshire Hathaway and is often labeled a Baby/Mini-Berkshire. Many have tried to become the next Berkshire – most have failed – but Boston Omaha looks promising. However, we look at the company as a call option and have thus initiated only a small position.
Who is the most competitive energy supplier? ›
The best energy suppliers in 2023
- Octopus Energy: The ultimate for customer service, value and more. ...
- Utility Warehouse: A great service with good complaint numbers and handling. ...
- Ovo Energy: One of the best but gets lots of complaints. ...
- Bulb Energy: Not as good as it once was but bills are clear.
Berkshire Grey's competitors and similar companies include GreyOrange, 6 River Systems, RightHand Robotics, Plus One Robotics and Dexterity.
Competitor comparison
- JPMorgan Chase & Co Headquarters. United States of America. No. of employees. ...
- Citigroup Inc Headquarters. United States of America. No. of employees. ...
- Wells Fargo & Co Headquarters. United States of America. No. of employees. ...
- The Goldman Sachs Group Inc Headquarters. United States of America. No. of employees.
Social Capital founder Chamath Palihapitiya rode a massive wave of investment success during the low-interest rate era of the past few years, leading some to call him the next Warren Buffett.
Who will succeed Warren Buffett at Berkshire Hathaway? ›
Warren Buffett reassures shareholders he's '100% comfortable' with his successor as Berkshire CEO: 'Greg understands capital allocation as well as I do' Attendees at Berkshire Hathaway's annual meeting tried to catch a glimpse of Greg Abel (far right), the designated successor to Warren Buffett.
What percentage of Apple does Berkshire Hathaway own? ›
Apple stock has risen more than 500% since Berkshire first purchased it while buybacks have increased Berkshire's stake in Apple. Today, Berkshire owns about 5.8% of the company.
What is Berkshire Hathaway most profitable companies? ›
Key Takeaways. Berkshire Hathaway owns businesses in insurance, rail transportation, energy generation and distribution, manufacturing, and retailing. Insurance generates the most revenue, but manufacturing generates the most earnings before taxes.
What is Berkshire competitive advantage? ›
Rather than chasing short-term gains or engaging in speculative trading, the company focuses on investing in high-quality companies with strong management teams and sustainable competitive advantages. This approach has allowed Berkshire Hathaway to generate consistently strong returns over the long term.
What is Berkshire Hathaway's strategy? ›
He invests in companies with a durable competitive advantage, strong management, and a history of growth, and he holds onto these investments for the long term, taking advantage of the power of compound interest. He has said that his favorite holding period is 'forever'.
What is the Berkshire Hathaway business model? ›
Berkshire Hathaway business model focuses on acquiring and managing varieties of companies in multiple industries. A few examples of industries where Berkshire Hathaway and its subsidiaries currently operate include the energy industry, manufacturing industry, and insurance industry.
What 4 stocks does Berkshire Hathaway own? ›
20 Symbols
- TSM102.802.86% Taiwan Semiconductor Manufacturing Company Limited.
- JNJ160.01-0.25% Johnson & Johnson.
- MA369.221.63% Mastercard Incorporated.
- PG146.560.12% The Procter & Gamble Company.
- CVX158.86-0.38% Chevron Corporation.
- KO60.470.10% The Coca-Cola Company.
- BAC29.270.04% Bank of America Corporation.
- UPS170.49-0.99%
BlackRock main competitors are BNP Paribas, Credit Suisse, and Goldman Sachs. Competitor Summary. See how BlackRock compares to its main competitors: BNP Paribas has the most employees (193,000).
Berkshire has a history of outperforming the S&P 500 during recessions, and performing especially well during bear markets, according to data from Bespoke Investment Group.
What is Warren Buffett's top 5 stock picks? ›
In addition to Occidental Petroleum Corporation (NYSE:OXY), stocks such as Bank of America Corporation (NYSE:BAC), Apple Inc. (NASDAQ:AAPL), and the Coca-Cola Company (NYSE:KO) are also amongst the top 15 stock picks of Warren Buffett's 2023 portfolio.
Does Warren Buffett own Walmart? ›
There's one key difference for Buffett now, though: Walmart isn't in Berkshire's portfolio. However, New England Asset Management, a subsidiary of Berkshire, does own shares of the discount retailer.
Does Warren Buffett own Disney stock? ›
The interesting thing is that Warren Buffett owned shares of Walt Disney a second time -- and, once again, chose not to stick around all that long.
What three stocks does Warren Buffett own? ›
Buffett's Biggest Holdings
| Company (Ticker) | Sector | Market Value |
|---|
| American Express (AXP) | Finance | $22.4 billion |
| Kraft Heinz (KHC) | Consumer Staples | $13.3 billion |
| Occidental Petroleum (OXY) | Energy | $12.2 billion |
| Moody's (MCO) | Finance | $6.9 billion |
6 more rowsMay 22, 2023
Who Owns Tesla Stock
| Holder | Common shares held (millions) | % of CSO (common stock outstanding) |
|---|
| Elon Musk | 423.6 | 13.4% |
| Vanguard Group | 213.0 | 6.8 |
| BlackRock (BLK) | 171.9 | 5.4 |
| State Street Global Advisors | 99.6 | 3.2 |
6 more rowsDec 16, 2022
A) Berkshire Hathaway has the highest-priced shares of any U.S. company, and is also one of the largest companies in the world, consistently ranking in the top 10 by market value. Buffett famously resisted splitting Berkshire's shares, something companies normally do to make it easier to trade their stock.
Does Buffett own Gillette? ›
Warren Buffett's Berkshire Hathaway built a $600 million position in Gillette in 1989. The investor's company swapped its stake for over $4 billion of Procter & Gamble stock in 2005.
Does Warren Buffett have shares in Apple? ›
Warren Buffett's investment in Apple (AAPL) stock has quickly become the most prominent holding in Berkshire Hathaway's (BRK-A, BRK-B) $360 billion equity portfolio. Berkshire first bought the stock in 2016, and since then Apple has grown to a $110 billion position comprising roughly 40% of Berkshire's stock holdings.
Why does Berkshire not pay dividends? ›
Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors. Instead, the company chooses to reinvest retained earnings into new projects, investments, and acquisitions.
Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each. Berkshire Hathaway's market capitalisation is over $640 billion, making it one of the giant companies in the world.
What is the minimum investment in Berkshire Hathaway? ›
Anyone can invest in Berkshire Hathaway if they have enough money to buy at least one share (less than $300 in early 2023).
Who owns the most stock in the world? ›
'Billionaire Stocks': Bill Gates, Berkshire Hathaway (BRK.B)
The natural stock pick held by the world's wealthiest person is Microsoft (NASDAQ:MSFT), the giant tech company Bill Gates co-founded with Paul Allen in 1975. Gates still owns almost 103 million shares of the company worth $15.4 billion.
Does Bill Gates own Costco? ›
Bill Gates Costco Wholesale Corp
The first Costco Wholesale trade was made in Q3 2002. Since then Bill Gates bought shares ten more times and sold shares on four occasions. The investor sold all their shares in Q4 2012 and doesn't own any shares in Costco Wholesale anymore.
Does Berkshire own Microsoft? ›
The Oracle of Omaha owns some tech stocks, but Microsoft isn't one of them.
What is Berkshire Hathaway in simple terms? ›
Berkshire Hathaway is a diversified multinational holding company with full ownership of such well-known brands as GEICO, Duracell, Fruit of the Loom, and Dairy Queen. Berkshire also has significant holdings in many other publicly traded companies, including Coca-Cola, Bank of America, American Express, and Apple.
Does Berkshire Hathaway have a good reputation? ›
Berkshire Hathaway has built its real estate reputation on providing quality services. While the company will take on clients in a variety of home sizes, they specialize in luxury real estate. The agents in most offices have experience buying and selling some of the pricier homes, condos, and properties in the area.
Who is taking over Berkshire Hathaway? ›
Warren Buffett reassures shareholders he's '100% comfortable' with his successor as Berkshire CEO: 'Greg understands capital allocation as well as I do' Attendees at Berkshire Hathaway's annual meeting tried to catch a glimpse of Greg Abel (far right), the designated successor to Warren Buffett.
Who is bigger Vanguard or BlackRock? ›
BlackRock and Vanguard AUM is $8.6 & $8.1 trillion, respectively. In total, they both own/invested in 1,600 U.S. companies(Reuters:2022). BlackRock's secret weapon, an advanced trading algorithm called Aladdin(Asset, Liability, Debt and Derivative Investment Network) has been shaping global markets for decades.
Who is bigger Fidelity or BlackRock? ›
BlackRock's brand is ranked #602 in the list of Global Top 1000 Brands, as rated by customers of BlackRock. Their current market cap is $108.30B. Fidelity Investments's brand is ranked #162 in the list of Global Top 1000 Brands, as rated by customers of Fidelity Investments.
BlackRock and Vanguard are the world's largest asset managers with a combined R309 trillion in assets under management (AUM), and they own stakes in most of the world's biggest businesses.
What are Berkshire Hathaway 4 largest holdings? ›
Key Takeaways. Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. (AAPL), Bank of America Corp (BAC), Chevron (CVX), The Coca-Cola Company (KO), and American Express Company (AXP). Apple is Berkshire's largest holding, accounting for 39% of its stock portfolio.
Who owns BlackRock? ›
Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers.
Who owns Vanguard and BlackRock? ›
Who owns BlackRock? BlackRock is not owned by a single individual or company. Instead, its shares are owned by a large number of individual and institutional investors. The biggest institutional shareholders such as The Vanguard Group and State Street are merely custodians of the stock for their clients.
