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Berkshire Hathaway: Difference between revisions
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In 2012, Berkshire acquired [[Oriental Trading Company]], a [[direct marketing]] company for [[novelty item]]s, small toys, and party items for around $500 million.<ref>{{cite news | url=https://archive.nytimes.com/dealbook.nytimes.com/2012/11/02/berkshire-to-buy-oriental-trading-company/ |title=Berkshire to Buy Oriental Trading Company | first=Michael J. | last=De La Merced | work=The New York Times | date=November 2, 2012 |archive-url=https://web.archive.org/web/20150911025823/http://dealbook.nytimes.com/2012/11/02/berkshire-to-buy-oriental-trading-company/ |archive-date=September 11, 2015 | url-status=live}}</ref><ref>{{cite news | url=https://www.reuters.com/article/business/warren-buffett-buys-toy-and-party-supplies-company-idUSBRE8A10DN/ | title=Warren Buffett buys toy and party-supplies company | last1=Oran | first1=Olivia | last2=Roumeliotis | first2=Greg | work=Reuters | date=November 2, 2012}}</ref><ref>{{cite press release | url=https://www.businesswire.com/news/home/20121102005098/en/Berkshire-Hathaway-to-Acquire-Oriental-Trading-Company | title=Berkshire Hathaway to Acquire Oriental Trading Company | publisher=[[Business Wire]] | date=November 2, 2012}}</ref> | In 2012, Berkshire acquired [[Oriental Trading Company]], a [[direct marketing]] company for [[novelty item]]s, small toys, and party items for around $500 million.<ref>{{cite news | url=https://archive.nytimes.com/dealbook.nytimes.com/2012/11/02/berkshire-to-buy-oriental-trading-company/ |title=Berkshire to Buy Oriental Trading Company | first=Michael J. | last=De La Merced | work=The New York Times | date=November 2, 2012 |archive-url=https://web.archive.org/web/20150911025823/http://dealbook.nytimes.com/2012/11/02/berkshire-to-buy-oriental-trading-company/ |archive-date=September 11, 2015 | url-status=live}}</ref><ref>{{cite news | url=https://www.reuters.com/article/business/warren-buffett-buys-toy-and-party-supplies-company-idUSBRE8A10DN/ | title=Warren Buffett buys toy and party-supplies company | last1=Oran | first1=Olivia | last2=Roumeliotis | first2=Greg | work=Reuters | date=November 2, 2012}}</ref><ref>{{cite press release | url=https://www.businesswire.com/news/home/20121102005098/en/Berkshire-Hathaway-to-Acquire-Oriental-Trading-Company | title=Berkshire Hathaway to Acquire Oriental Trading Company | publisher=[[Business Wire]] | date=November 2, 2012}}</ref> | ||
In 2017, Berkshire acquired 38.6% of [[truck stop]] chain [[Pilot Flying J]] for $2.8 billion, followed by the acquisition of an additional 41.4% of the company for $8.2 billion in 2023, and the remaining 20% in 2024 for $3 billion. It appointed two Berkshire Hathaway Energy executives as CEO and CFO of the company, retaining [[Jimmy Haslam]] as chairman.<ref>{{cite news |url=https://www.usatoday.com/story/money/markets/2017/10/03/warren-buffett-berkshire-hathaway-pilot-flying-j-truck-stops/726378001/ |title=Warren Buffett, Berkshire Hathaway buying Pilot Flying J truck stops | work= | In 2017, Berkshire acquired 38.6% of [[truck stop]] chain [[Pilot Flying J]] for $2.8 billion, followed by the acquisition of an additional 41.4% of the company for $8.2 billion in 2023, and the remaining 20% in 2024 for $3 billion. It appointed two Berkshire Hathaway Energy executives as CEO and CFO of the company, retaining [[Jimmy Haslam]] as chairman.<ref>{{cite news |url=https://www.usatoday.com/story/money/markets/2017/10/03/warren-buffett-berkshire-hathaway-pilot-flying-j-truck-stops/726378001/ |title=Warren Buffett, Berkshire Hathaway buying Pilot Flying J truck stops | work=USA Today | date=October 3, 2017 | archive-url=https://web.archive.org/web/20180619045916/https://www.usatoday.com/story/money/markets/2017/10/03/warren-buffett-berkshire-hathaway-pilot-flying-j-truck-stops/726378001/ | archive-date=June 19, 2018 |url-status=live}}</ref><ref>{{Cite news |url=https://www.knoxnews.com/story/money/business/2023/04/10/pilot-flying-j-new-ceo-after-warren-buffett-berkshire-hathaway/70085946007/ | title=EXCLUSIVE: Berkshire Hathaway launches new era of Pilot Company ownership with CEO change | first=Brenna | last=McDermott | work=[[Knoxville News Sentinel]] | date=April 10, 2023}}</ref><ref>{{cite news | title=Pilot Flying J Is Fully Acquired By Berkshire Hathaway | url=https://www.convenience.org/Media/Daily/2024/Jan/19/3-Pilot-Flying-J-Acquired-Berkshire-Hathway_Ops | work=[[National Association of Convenience Stores]] | date=January 19, 2024}}</ref><ref>{{cite news | url=https://link.cnbc.com/public/34063969 | title=Price stays secret as Berkshire completes contested PTC acquisition | work=[[CNBC]] | date=January 19, 2024}}</ref> | ||
On October 2, 2014, Berkshire Hathaway Automotive, an auto dealership subsidiary, was created through the acquisition of Van Tuyl Group, the remaining largest auto dealer in the nation and independently owned up to that date. It is the fifth-largest with ownership of 81 dealerships and revenues of $8 billion.<ref>{{cite news | url=https://www.forbes.com/sites/jimhenry/2014/10/02/warren-buffett-jumps-into-autos-buying-van-tuyl-group/ | title=Warren Buffett Jumps Into Autos, Buying Van Tuyl Group | first=Jim | last=Henry | work=[[Forbes]] |date=October 2, 2014 | url-access=limited |archive-url=https://web.archive.org/web/20161011191859/http://www.forbes.com/sites/jimhenry/2014/10/02/warren-buffett-jumps-into-autos-buying-van-tuyl-group/ |archive-date=October 11, 2016 |url-status=live}}</ref><ref>{{cite news | url=https://www.mysanantonio.com/business/article/Billionaire-Warren-Buffett-s-Berkshire-Hathaway-7976438.php | title=Billionaire Warren Buffett's Berkshire Hathaway buys North Park Toyota | first=Richard | last=Webner | work=[[San Antonio Express-News]] | date=June 10, 2016 |archive-url=https://web.archive.org/web/20170422205751/http://www.mysanantonio.com/business/article/Billionaire-Warren-Buffett-s-Berkshire-Hathaway-7976438.php |archive-date=April 22, 2017 |url-status=live}}</ref> | On October 2, 2014, Berkshire Hathaway Automotive, an auto dealership subsidiary, was created through the acquisition of Van Tuyl Group, the remaining largest auto dealer in the nation and independently owned up to that date. It is the fifth-largest with ownership of 81 dealerships and revenues of $8 billion.<ref>{{cite news | url=https://www.forbes.com/sites/jimhenry/2014/10/02/warren-buffett-jumps-into-autos-buying-van-tuyl-group/ | title=Warren Buffett Jumps Into Autos, Buying Van Tuyl Group | first=Jim | last=Henry | work=[[Forbes]] |date=October 2, 2014 | url-access=limited |archive-url=https://web.archive.org/web/20161011191859/http://www.forbes.com/sites/jimhenry/2014/10/02/warren-buffett-jumps-into-autos-buying-van-tuyl-group/ |archive-date=October 11, 2016 |url-status=live}}</ref><ref>{{cite news | url=https://www.mysanantonio.com/business/article/Billionaire-Warren-Buffett-s-Berkshire-Hathaway-7976438.php | title=Billionaire Warren Buffett's Berkshire Hathaway buys North Park Toyota | first=Richard | last=Webner | work=[[San Antonio Express-News]] | date=June 10, 2016 |archive-url=https://web.archive.org/web/20170422205751/http://www.mysanantonio.com/business/article/Billionaire-Warren-Buffett-s-Berkshire-Hathaway-7976438.php |archive-date=April 22, 2017 |url-status=live}}</ref> | ||
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In 2013, Berkshire owned 1.74 million shares of [[Gannett]]; however, it sold its shares in the second quarter of 2013.<ref>{{cite news |url=https://money.cnn.com/2013/08/15/investing/berkshire-buffett-newspapers/index.html | title=Buffett's Berkshire dumps Gannett, buys Dish Network | first=Aaron | last=Smith | work=CNN | date=August 15, 2013}}</ref><ref>{{Cite news | url=https://www.theguardian.com/media/greenslade/2013/aug/16/gannett-warrenbuffett | title=Buffett dumps $38m shares in Gannett | first=Roy | last=Greenslade | work=[[The Guardian]] | date=August 16, 2013}}</ref> | In 2013, Berkshire owned 1.74 million shares of [[Gannett]]; however, it sold its shares in the second quarter of 2013.<ref>{{cite news |url=https://money.cnn.com/2013/08/15/investing/berkshire-buffett-newspapers/index.html | title=Buffett's Berkshire dumps Gannett, buys Dish Network | first=Aaron | last=Smith | work=CNN | date=August 15, 2013}}</ref><ref>{{Cite news | url=https://www.theguardian.com/media/greenslade/2013/aug/16/gannett-warrenbuffett | title=Buffett dumps $38m shares in Gannett | first=Roy | last=Greenslade | work=[[The Guardian]] | date=August 16, 2013}}</ref> | ||
In the first quarter of 2016, Berkshire began investing in [[Apple Inc.]], with a purchase of 9.8 million shares (0.2% of Apple) worth $1 billion. By the end of June 2016, this stake had increased to 15.2 million shares (0.3% of Apple). By December 31, 2016, Berkshire had built up a stake of 57.4 million shares (1.1% of Apple) with an estimated average acquisition price of $110 per share (before the 2020 4:1 split). Aggressive stock purchases continued and by March 31, 2017, Berkshire had amassed a stake of 129 million shares (2.5% of Apple). By December 31, 2017, Berkshire owned 166 million shares (3.3% of Apple). Berkshire bought 75 million more shares in early 2018.<ref>{{cite news | url=https://www.usatoday.com/story/money/2018/05/04/buffett-buys-75-m-more-shares-apple-stock/579974002/ | title=Warren Buffett's Berkshire Hathaway buys 75M more Apple shares, sells off IBM | work= | In the first quarter of 2016, Berkshire began investing in [[Apple Inc.]], with a purchase of 9.8 million shares (0.2% of Apple) worth $1 billion. By the end of June 2016, this stake had increased to 15.2 million shares (0.3% of Apple). By December 31, 2016, Berkshire had built up a stake of 57.4 million shares (1.1% of Apple) with an estimated average acquisition price of $110 per share (before the 2020 4:1 split). Aggressive stock purchases continued and by March 31, 2017, Berkshire had amassed a stake of 129 million shares (2.5% of Apple). By December 31, 2017, Berkshire owned 166 million shares (3.3% of Apple). Berkshire bought 75 million more shares in early 2018.<ref>{{cite news | url=https://www.usatoday.com/story/money/2018/05/04/buffett-buys-75-m-more-shares-apple-stock/579974002/ | title=Warren Buffett's Berkshire Hathaway buys 75M more Apple shares, sells off IBM | work=USA Today | first=Adam | last=Shell | date=May 4, 2018 | archive-url=https://web.archive.org/web/20180504150548/https://www.usatoday.com/story/money/2018/05/04/buffett-buys-75-m-more-shares-apple-stock/579974002/ | archive-date=May 4, 2018 | url-status=live}}</ref><ref>{{cite news | url=https://www.reuters.com/article/business/apple-hits-record-high-after-buffetts-berkshire-increases-stake-idUSKBN1I506S/ |title=Apple hits record high after Buffett's Berkshire increases stake| work=Reuters |first=Sonam | last=Rai | date=May 4, 2018 | archive-url=https://web.archive.org/web/20180505070107/https://www.nasdaq.com/article/apple-hits-record-high-after-buffetts-berkshire-increases-stake-20180504-00860 | archive-date=May 5, 2018 | url-status=live}}</ref> {{As of|2022|12|31| post=,|df=US}} Berkshire owned 5.8% of Apple.<ref>{{cite web | url=https://www.sec.gov/Archives/edgar/data/1067983/000119312523038262/d382361dsc13ga.htm | title=Apple Inc. Schedule 13G |date=February 14, 2023 |publisher=U.S. Securities and Exchange Commission}}</ref><ref name=dumps>{{cite news | url=https://www.reuters.com/business/buffetts-berkshire-reduces-stake-activision-blizzard-2023-02-14/ | last1=Mandl | first1=Carolina | last2=S | first2=Sittarasu | title=Berkshire dumps shares in TSMC, banks; increases Apple stake | work=Reuters |date=February 14, 2023}}</ref> Berkshire Hathaway reduced its Apple stake by nearly 50%, selling $75.5 billion worth of stock in the second quarter of 2024, increasing its cash reserves to a record $276.9 billion.<ref>{{Cite news | url=https://www.bloomberg.com/news/articles/2024-08-03/berkshire-hathaway-s-cash-pile-soars-to-record-276-9-billion | title=Berkshire Cuts Apple Stake by Almost Half in Selling Spree | first1=Amanda | last1=Cantrell | first2=Katherine | last2=Chiglinsky | work=[[Bloomberg News]] | date=August 3, 2024 | url-access=subscription}}</ref> Buffett had said that Apple has developed an ecosystem and level of brand loyalty that provides it with an [[economic moat]], and that consumers appear to have a degree of price insensitivity when it comes to the [[iPhone]]. While Buffett generally does not invest in tech stocks, he has said that Apple is a consumer products company and that he understands consumer products businesses.<ref>{{cite news | url=https://www.reuters.com/article/us-berkshire-buffett-apple-idUSKBN1I60V8 | title=Buffett owns 5 percent of Apple. He'd like to own more | first=Jonathan | last=Stempel | work=Reuters |date=May 5, 2018 |archive-url=https://web.archive.org/web/20190202042302/https://www.reuters.com/article/us-berkshire-buffett-apple-idUSKBN1I60V8 |archive-date=February 2, 2019 |url-status=live}}</ref> | ||
In the third quarter of 2016, Berkshire surprised investors by making large equity investments in the major US [[airline]]s. Buffett had previously described airlines as a "deathtrap for investors". Buffett had made an investment in US Airways in 1989 which, although he sold for a profit, almost lost Berkshire a substantial sum of money.<ref>{{cite news |url=https://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html | title=Buffett's Berkshire takes stakes in four major airlines | first=Becky | last=Quick |authorlink=Becky Quick | date=November 14, 2016 | work=[[CNBC]] |url-status=live |archive-url=https://web.archive.org/web/20170605182205/https://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html |archive-date=June 5, 2017}}</ref> In 2017, Berkshire was the largest shareholder in [[United Airlines]] and [[Delta Air Lines]] and a top 3 shareholder in [[Southwest Airlines]] and [[American Airlines]]. Buffett himself has described this as a "call on the industry" rather than a choice in an individual company. American Airlines' CEO [[Doug Parker]] is said to have won over Ted Weschler in arguing that the airline industry had consolidated sufficiently and rationalized supply such that longer-term profitability could be achieved in an industry that has historically been loss-making in aggregate.<ref>{{cite news |url=https://www.bloomberg.com/news/articles/2017-02-15/airlines-rise-to-a-record-as-buffett-s-berkshire-deepens-bet | first=Mary | last=Schlangenstein |title=Airline Shares Reach Record as Buffett's Berkshire Extends Bet | work=[[Bloomberg News]] | date=February 15, 2017 | url-access=subscription |archive-url=https://web.archive.org/web/20170414191506/https://www.bloomberg.com/news/articles/2017-02-15/airlines-rise-to-a-record-as-buffett-s-berkshire-deepens-bet |archive-date=April 14, 2017 |url-status=live}}</ref> In April 2020, Berkshire sold all shares in the airlines due to the [[impact of the COVID-19 pandemic on commercial air transport]].<ref>{{Cite news |url=https://www.forbes.com/sites/geoffwhitmore/2020/05/04/warren-buffett-dumps-airline-stocks/ |title=Warren Buffett Dumps Airline Stocks |first=Geoff |last=Whitmore | work=[[Forbes]] | date=May 4, 2020 | url-access=limited}}</ref> | In the third quarter of 2016, Berkshire surprised investors by making large equity investments in the major US [[airline]]s. Buffett had previously described airlines as a "deathtrap for investors". Buffett had made an investment in US Airways in 1989 which, although he sold for a profit, almost lost Berkshire a substantial sum of money.<ref>{{cite news |url=https://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html | title=Buffett's Berkshire takes stakes in four major airlines | first=Becky | last=Quick |authorlink=Becky Quick | date=November 14, 2016 | work=[[CNBC]] |url-status=live |archive-url=https://web.archive.org/web/20170605182205/https://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html |archive-date=June 5, 2017}}</ref> In 2017, Berkshire was the largest shareholder in [[United Airlines]] and [[Delta Air Lines]] and a top 3 shareholder in [[Southwest Airlines]] and [[American Airlines]]. Buffett himself has described this as a "call on the industry" rather than a choice in an individual company. American Airlines' CEO [[Doug Parker]] is said to have won over Ted Weschler in arguing that the airline industry had consolidated sufficiently and rationalized supply such that longer-term profitability could be achieved in an industry that has historically been loss-making in aggregate.<ref>{{cite news |url=https://www.bloomberg.com/news/articles/2017-02-15/airlines-rise-to-a-record-as-buffett-s-berkshire-deepens-bet | first=Mary | last=Schlangenstein |title=Airline Shares Reach Record as Buffett's Berkshire Extends Bet | work=[[Bloomberg News]] | date=February 15, 2017 | url-access=subscription |archive-url=https://web.archive.org/web/20170414191506/https://www.bloomberg.com/news/articles/2017-02-15/airlines-rise-to-a-record-as-buffett-s-berkshire-deepens-bet |archive-date=April 14, 2017 |url-status=live}}</ref> In April 2020, Berkshire sold all shares in the airlines due to the [[impact of the COVID-19 pandemic on commercial air transport]].<ref>{{Cite news |url=https://www.forbes.com/sites/geoffwhitmore/2020/05/04/warren-buffett-dumps-airline-stocks/ |title=Warren Buffett Dumps Airline Stocks |first=Geoff |last=Whitmore | work=[[Forbes]] | date=May 4, 2020 | url-access=limited}}</ref> | ||