| BUSINESSWEEK ONLINE : JULY 5, 1999 ISSUE | ||||||||
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| COVER STORY
Anatomy of the Berkshire Empire What do candy, corporate jets, and earthquake insurance have in common? Nothing--except that each caught the eye of Warren Buffett BUFFETT MADE HIS NAME AND FORTUNE BUYING STOCKS...
COST VALUE*
STOCK MILLIONS MILLIONS
COCA-COLA $1,299 $13,400
GILLETTE 600 4,590
AMERICAN EXPRESS 1,470 5,180
FREDDIE MAC 308 3,885
WELLS FARGO 392 2,540
WALT DISNEY 281 1,536
WASHINGTON POST CO. 11 999
Others 2,683 5,135
TOTAL 7,044 37,265
*As of 12/31/98DATA: BERKSHIRE HATHAWAY'S 1998 ANNUAL REPORT ...BUT NOW, HE BUYS COMPANIES, MAKING BERKSHIRE A BONA FIDE OPERATOR INSURANCE Includes Buffett's original insurance businesses. Excels in reinsurance against natural disasters. Revenue: $1.3 billion Operating profit: $4 million GENERAL RE* Largest U.S. reinsurer. Acquired in 1998. Revenue (1997): $8.3 billion Net profit: $968 million GEICO Sixth-largest U.S. auto insurer. Partially owned since 1976; fully acquired in 1996. Revenue: $4 billion Operating profit: $269 million SEE'S CANDIES San Francisco-based maker of boxed chocolates. Acquired in 1972. Revenue: $288 million Operating profit: $62 million HOME FURNISHINGS Includes discount retailers Nebraska Furniture Mart (Omaha), acquired in 1983, R.C. Willey Home Furnishings (Houston), acquired in 1995, and Star Furniture (Salt Lake City), acquired in 1997. Revenue: $793 million Operating profit: $72 million SHOE MANUFACTURING Includes H.H. Brown, acquired in 1991, and Dexter, acquired in 1993. Revenue: $500 million Operating profit: $33 million SCOTT FETZER Manufacturer and distributor of industrial and consumer products, including Kirby vacuum cleaners, World Book encyclopedias, Quikut knives, and Campbell Hausfeld air compressors. Acquired in 1986. Revenue: $1 billion Operating profit: $137 million DAIRY QUEEN Licenses and services 5,900 Dairy Queen stores nationwide, as well as a smaller number of Orange Julius and Karmel Korn outlets. Acquired in 1997. Revenue: $420 million Operating profit: $58 million FLIGHT SERVICES Includes FlightSafety, the No. 1 independent provider of training to operators of aircraft and ships, acquired in 1996, and Executive Jet Aviation, No. 1 in fractional-share ownership of business jets, acquired in 1998. Revenue: $858 million** Operating profit: $181 million** BUFFALO NEWS The last remaining daily newspaper in Buffalo, N.Y. After acquiring it in 1977, Berkshire immediately started a Sunday edition. Revenue: $157 million Operating profit: $53 million JEWELRY Includes fine jewelry retailer Borsheim's (Omaha), acquired in 1989, and Helzberg Diamond Shops (Kansas City, Mo.), acquired in 1995. Revenue: $440 million Operating profit: $39 million *Only 10 days of Gen Re's results were included in Berkshire's 1998 financials. **EJA results from Aug. 7 to yearend, 1998. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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 RELATED ITEMS The Warren Buffett You Don't Know COVER IMAGE: The Warren Buffett You Don't Know TABLE: Anatomy of the Berkshire Empire Talking to the Troops ONLINE ORIGINAL: Homespun Wisdom from the ``Oracle of Omaha'' INTERACT E-Mail to Business Week Online | |||
