Berkshire Hathaway as Model Manager/Owner

Warren Buffett and Charlie Munger are Chairman and Vice-Chairman respectively of Berkshire Hathaway Inc. Berkshire Hathaway is a southern textile plant in 1964 when Buffett acquires it through his Buffett Partnership, Ltd. Book value of the stock at the time of acquisition is $19.46 per share. Class A stock value at the date of publication is approximately $40,000 per share. Class A stock is convertible into thirty shares of Class B stock. Managing-ownership of Berkshire transforms a marginal textile industry company over thirty-some years ago into a global multiple-industry $70 billion enterprise. Warren Buffett and Charlie Munger are active owner-managers of the holding corporation and maintain responsibility for capital allocation, investments, and executive management relations for the holding and subsidiary companies.

Subsidiary company executives are responsible for the profitable management and operations of their respective businesses. Berkshire Hathaway investments include controlled insurance companies including GEICO and General...