The latest on Warren Buffett’s empire Berkshire Hathaway is in, and there are seven things which will stun you about the company. 1. It owns 33 newspapers Many people know Berkshire Hathaway is a company with a wide range of diverse businesses, but it is not widely known the company also owns 33 newspapers across 11 states in the USA. It owns the York News-Times, in York, Nebraska, with a total circulation of 3,112 daily papers, which isn’t to be confused with the New York Times with its nearly 2 million subscribers. In fact, the biggest paper Buffett and Berkshire…
The latest on Warren Buffett’s empire Berkshire Hathaway is in, and there are seven things which will stun you about the company.
1. It owns 33 newspapers
Many people know Berkshire Hathaway is a company with a wide range of diverse businesses, but it is not widely known the company also owns 33 newspapers across 11 states in the USA. It owns the York News-Times, in York, Nebraska, with a total circulation of 3,112 daily papers, which isn’t to be confused with the New York Times with its nearly 2 million subscribers. In fact, the biggest paper Buffett and Berkshire owns is the Richmond Times-Dispatch, which has a Sunday circulation of 147,270.
2. It only has 25 “employees”
Yes, the company worth US$310 billion only has 25 people employed in its corporate offices. But across its more than 80 operating businesses, it has an additional 330,720 employees, including a few major employers listed below:
3. It serves 19 states and 26 cities in the USA with its real estate brokerage business
Speaking of spanning the United States of America, it isn’t just diversity in its businesses and publications, but also its real estate brokerage business which reaches from Connecticut, with Berkshire Hathaway HomeServices New England Properties, to California, with Berkshire Hathaway HomeServices California Properties. The smallest office is located in Rhode Island with 18 agents, and the largest is found in Philadelphia which has 4,142 agents.
4. It has almost US$61 billion in unrealized gains
Berkshire Hathaway has an astounding US$117.5 billion in common stock investments. Even more staggering is the company only paid US$56.6 billion for them. Meaning Berkshire Hathaway has a staggering US$61 billion in the form of unrealized gains.
To put that in perspective, if Berkshire Hathaway decided to sell every stock it held on New Year’s Eve 2013, it would’ve netted a return more than twice the combined sum of the net income of all of the Straits Times Index’s (SGX: ^STI) 30 constituents last year. And yes, that includes the S$3.67 billion, S$3.01 billion, S$2.77 billion, and S$2.15 billion that DBS Group Holdings (SGX: D05), United Overseas Bank (SGX: U11), Oversea-Chinese Banking Corporation (SGX: O39), and Jardine Strategic Holdings (SGX: J37) had earned in profit, respectively.
The biggest winners in the Berkshire Hathaway portfolio on a total dollar basis you ask? None other than the known favorites of Coca-Cola (US$15.2 billion), American Express (US$12.5 billion) and Wells Fargo (US$10.1 billion).
5. He loves America, but his portfolio expands outside the States
While the types of the investments of Berkshire Hathaway makes are relatively well known, it turns out they don’t only have to be in the U.S. to pique the consideration of Buffett. Of the 15 largest common stock stakes Berkshire Hathaway holds, three are headquartered outside the U.S.:
Munich Re is a reinsurance company based in, you guessed it, Munich. Sanofi is a pharmaceutical firm headquartered in Paris. And Tesco is a multi-national grocery store based out of England.
6. Over the last two years, its net income nearly doubled
When reviewing Berkshire’s results, Buffett noted plainly, “On the operating front, just about everything turned out well for us last year – in certain cases very well.” A quick glance reveals the net income available to shareholders of Berkshire Hathaway rose by a staggering 32% in 2013, and its total of $19.5 billion almost doubled the $10.3 billion posted in 2011:
7. It’s still crushing the market
Many made much of the reality that for the first time since its inception, Berkshire Hathaway trailed the S&P 500 (a widely-followed American stock market index) over a five-year period, growing its book value by 91% compared to a 128% return delivered by the S&P 500.
However as Buffett himself critically notes; “Over the stock market cycle between yearends 2007 and 2013, we overperformed the S&P. Through full cycles in future years, we expect to do that again.”
Indeed in the six years from 2007 to 2013, Berkshire delivered a total return of 73% compared to the 44% return seen in the S&P 500.
Some may say Buffett has lost it, but anyone who would suggest so wouldn’t actually know the truth.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. This article was written by Patrick Morris and first published on fool.com. It has been edited for fool.sg.