Jump to ContentJump to Main Navigation
Berkshire Beyond BuffettThe Enduring Value of Values$
Users without a subscription are not able to see the full content.

Lawrence Cunningham

Print publication date: 2014

Print ISBN-13: 9780231170048

Published to University Press Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231170048.001.0001

Show Summary Details
Page of
date: 14 December 2017

Berkshire’s Portfolio

Berkshire’s Portfolio

Chapter:
(p.174) 13 Berkshire’s Portfolio
Source:
Berkshire Beyond Buffett
Author(s):

Lawrence A. Cunningham

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231170048.003.0013

This chapter looks at investees—companies in which Berkshire has a minority interest. Investees may fail, be acquired, reorganize, or become marketable securities that Berkshire sells or trades. Among Berkshire’s former investees which no longer exist due to merger or other corporate mortality are Beatrice Foods, Capital Cities/ABC, F. W. Woolworth, General Foods, and Knight Ridder. Among those Berkshire has sold are Freddie Mac, Kraft Foods, and McDonald’s. Today, 80 percent of Berkshire consists of subsidiaries and only 20 percent investees. Berkshire’s investee portfolio is like a business unit within Berkshire equivalent to a large subsidiary. While investees do not define Berkshire culture, their purchase and sale reflect Berkshire’s values, and many boast strong cultures, big personalities, and fascinating histories. Of particular significance are two of the oldest (Washington Post and Gillette, now Procter & Gamble), two of the largest (CocaCola and Walmart), and two of the most opportunistic (Goldman Sachs and USG). For a glimpse into the future, the chapter also considers another candidate for full acquisition—Heinz—and the novel partnership Berkshire made with a private equity firm to acquire half of it. At 50 percent, Heinz is neither an investee nor a subsidiary, and the transaction defines a new model for the next generation of Berkshire deals.

Keywords:   Berkshire Hathaway, subsidiaries, minority interest, corporate culture, investment, investees

University Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .