BUSINESSWEEK ONLINE : JULY 5, 1999 ISSUE
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 12/31/98

DATA: 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.


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