Berkshire Hathaway Inc
Berkshire Hathaway is a diversified holding company built around a large insurance franchise, a North American railroad, regulated utility and energy businesses, and a broad portfolio of manufacturing, service and retail operations. Its structure is unusually decentralized: operating subsidiaries run their businesses largely independently while corporate management focuses on capital allocation, investment decisions and governance. The company also holds a very large investment portfolio, so reported earnings can be heavily influenced by market movements in equity securities and other investments. Berkshire is domiciled in Delaware and headquartered in Omaha, Nebraska.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenuePrimary insurance, reinsurance and specialty risk underwriting across property, casualty, life and health lines.
BNSF freight rail services moving consumer, industrial, agricultural, energy and coal shipments across North America.
Regulated electric, gas, transmission and energy generation/distribution businesses under BHE.
Industrial, building and consumer products, wholesale distribution, and service/retail operations.
Investment gains/losses, dividend and interest income, and corporate-level items tied to Berkshire's capital allocation model.
Products
Reported · share of revenue- Other Retail and Wholesale Distribution24.5 %
- Services14.9 %
- Grocery and Convenience Store Distribution12.4 %
- Manufactured Industrial and Commercial Products12.3 %
- Electricity and Natural Gas8.6 %
- Other27.2 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Berkshire serves a very broad customer base because its subsidiaries operate in multiple unrelated industries. Insurance customers include businesses and individuals buying primary coverage, reinsurance protection, and life and health products, while BNSF serves shippers moving consumer, industrial, agricultural and energy freight across North America. Its utility businesses sell regulated power and energy services to residential, commercial and industrial users, and its manufacturing and retail subsidiaries sell components, building products, consumer goods and distribution services to other businesses and end consumers. HomeServices supports real estate franchisees, brokerage offices and agents, with revenue tied to residential transaction activity. McLane's wholesale distribution customers include convenience stores, retailers, clubs, drug stores, military bases and restaurant chains that need high-volume, time-sensitive replenishment.
Businesses and individuals buy primary insurance, specialty coverage and reinsurance protection to transfer property, casualty, life and health risks.
Manufacturers, agricultural producers, energy companies and consumer goods shippers use BNSF to move large volumes efficiently across North America.
Residential, commercial and industrial users buy regulated electricity, gas and transmission services from Berkshire's utility businesses.
Convenience stores, retailers, clubs, drug stores, military bases and restaurants buy replenishment and distribution services from McLane.
Aerospace, power, automotive, construction and consumer end markets buy components, tools, building products and branded consumer goods.
Franchisees and brokerage offices pay fees for brand rights, training and support services tied to residential real estate transactions.
Strategy
Berkshire's core strategy is to use the cash generation of its operating businesses and insurance float to allocate capital across acquisitions, organic investment and marketable securities. Management emphasizes decentralized operating control, allowing subsidiary managers to run businesses with minimal central interference while corporate leadership focuses on capital allocation and succession. The company continues to rely on a mix of stable regulated businesses and cyclical operating companies, which helps diversify earnings but also creates exposure to economic cycles and commodity, freight and housing activity. A major strategic issue is leadership transition, with Gregory E. Abel appointed to succeed Warren E. Buffett as CEO effective January 1, 2026, while Ajit Jain and Adam Johnson oversee key operating groups.
Berkshire's value creation depends on directing large amounts of cash and float into businesses and securities with durable returns.
Keeping subsidiaries autonomous preserves entrepreneurial management and reduces corporate overhead across a very diverse portfolio.
The transition from Warren Buffett to Gregory E. Abel is central to continuity in capital allocation and investor confidence.
Geography
Berkshire is headquartered in Omaha, Nebraska and domiciled in Delaware, but its operating footprint is much broader than the U.S. The company said approximately 80% of its worldwide workforce was in the United States at the end of 2025, reflecting the domestic concentration of its rail, utility, insurance and distribution businesses. BNSF operates across 28 U.S. states and three Canadian provinces, while Berkshire's insurance subsidiaries underwrite risks worldwide. The business is therefore exposed to U.S. economic conditions, North American freight demand, and international geopolitical and trade disruptions that can affect both operations and the value of its investment portfolio.
Risks
Berkshire faces a mix of company-specific and broad macro risks because it owns businesses in insurance, rail, utilities, manufacturing and retailing. Its insurance operations are exposed to catastrophe losses, underwriting volatility and reserve uncertainty, while BNSF and the manufacturing businesses are sensitive to freight volumes, industrial demand, commodity flows and supply-chain disruptions. The company also disclosed cybersecurity, terrorism and geopolitical risks, including tariffs and trade restrictions that could hurt operations, damage assets or reduce the value of securities it owns. A further risk is key-person dependence around capital allocation and investment decisions, especially during the CEO transition. In addition, Berkshire's large equity portfolio can create significant earnings volatility from market price changes and impairment charges.
- Insurance underwriting and catastrophe lossesImpact: HighLikelihood: Medium
Berkshire's insurance businesses are exposed to large claims, reserve variability and severe weather or other catastrophe events.
Exposure - Cybersecurity attacksImpact: HighLikelihood: Medium
The company relies on technology across many subsidiaries, and a successful attack could disrupt operations, cause data loss and create reputational damage.
Exposure: All operating businesses
- Geopolitical and trade policy disruptionImpact: HighLikelihood: Medium
Conflicts, sanctions, tariffs and trade barriers can reduce sales, raise costs and affect the value of securities held by Berkshire.
Exposure: North America and global investment portfolio
- Key-person dependence and successionImpact: MediumLikelihood: Low
Major capital allocation and investment decisions depend on a small number of senior leaders, making succession execution important.
Exposure: Corporate leadership and investment decisions
- Goodwill impairment in acquired businessesImpact: Medium
Several reporting units had fair values close to carrying values, so adverse market or operating changes could trigger impairment charges.
Exposure
Accounting
Judgemental itemsMarket price movements create large unrealized gains and losses that can materially distort period-to-period earnings.
Impact: Drives volatility in net earnings and comprehensive income
Several reporting units had limited headroom versus carrying value, so adverse operating changes could trigger charges.
Impact: Can create large non-cash write-downs in manufacturing, services and retailing
Claim timing, severity and catastrophe experience affect reserve adequacy and underwriting profit.
Impact: Affects insurance underwriting earnings and balance sheet liabilities
Residential real estate and certain distribution volumes vary by quarter, affecting comparability.
Impact: Quarterly revenue and margin fluctuations
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Last updated: 24/09/2026