NetJets

Founded 1986
Fleet size 800
Destinations Point to point
Parent company Berkshire Hathaway
Headquarters Columbus, Ohio
Key people Bruce Sundlun, Paul Tibbetts, Richard Santulli, Warren Buffett, David L. Sokol
Website http://www.netjets.com

NetJets, a subsidiary of Berkshire Hathaway, offers fractional ownership and rental of private business jets.

History

NetJets Inc. formerly Executive Jet Aviation, was founded in 1964 as one of the first private business jet charter and aircraft management companies. The founding members of the board of directors of Executive Jet Aviation Corporation (EJA), included Air Force generals Curtis E. LeMay, and Paul Tibbetts, Washington lawyer and former military pilot Bruce Sundlun, and entertainers James Stewart and Arthur Godfrey among others, with retired Air Force Brigadier General Olbert F. ("Dick") Lassiter as president and chairman of the board.[1][2] EJA initially began operations in 1964 with a fleet of ten Learjet 23 aircraft.[3] Bruce Sundlun became EJA president in 1970, and Paul Tibbetts became president in 1976. [4] By the the end late 1970s, EJA was doing business with approximately 250 contract flying customers and logging more than three million miles per year.

Executive Jet Aviation Corporation was purchased in 1984 by former Goldman Sachs executive Richard Santulli and he became chairman and CEO of the corporation. In 1986 the NetJets program was created by Santulli as the first fractional aircraft ownership program. In 1998, after being a NetJets customer for three years, Warren Buffett, Chairman & CEO of the Berkshire Hathaway company, acquired NetJets Inc.[5]

In early August of 2009 Santulli resigned as CEO and was replaced by David Sokol. [6]
[edit]
Services

NetJets sells fractions of specific aircraft, chosen from several available types at the time of purchase. When purchasing a fraction of an aircraft, the purchaser is considered an "owner." Being an owner offers customers the convenience, access, and time advantages of flying point to point in private jets. This also allows the owner access to more, often smaller, airports; possibly shortening travel to both arrival and departure point. Arrival and departure points along with departure time are chosen by the customer for each individual trip. Costs are higher than flying commercial carriers but lower than purchasing, staffing and maintenance of a similar private jet.
Fractional ownership — the price is pro-rated from the market price of a full aircraft. Owners then have guaranteed access (50-400 hours annually, depending on share size) to that aircraft with as little as four hours’ notice. If the owner's aircraft is unavailable for some reason, another aircraft of the same type, or a larger aircraft, will be provided. Fractional owners pay a monthly maintenance fee and an “occupied” hourly operating fee. The latter is charged only when an owner or guest is on board, not when the aircraft is flying to a pick up point, or flying to another location after completing a flight.
Marquis Jet Card — Marquis Jet is a separate company that exclusively offers NetJets aircraft under their "Marquis Card." This plan is aimed for people who need fewer than the minimum of 50 flight hours with fractional ownership plans and do not want the usual 5 year commitment of fractional ownership. All costs would be paid upfront and are sold in 25 hour increments.

H.H.BROWN

Justin Boots

Justin Boots are a brand of cowboy boots, owned by the Justin Brands company, which is in turn a subsidiary of Berkshire Hathaway. Justin Brands additionally owns brands Nocona and Tony Lama. The company is headquartered in Fort Worth, Texas.[1]

Brief Cowboy History

The modern day cowboy boot is one of the most recognizable facets of American culture, and is dominated by the big five companies-Justin, Tony Lama, Nocona, Hyer, and Acme. Cattle ranching in the United States existed as early as 1767 in California, but did not begin until the 1820s in Texas. However, what most people think of when they picture the legendary cowboy lifestyle of the "hard working man," did not begin until 1867 with the construction of the transcontinental railroad. [2]
[edit]
Early Justin History

The look of the nineteenth-century cowboy boot has three important components: the high heel, the below-the-knee cut, and the side seams on the legs. [3] Justin cowboy boots have had a strong hold in the market as the true leader because of their reputation for quality craftsmanship and materials and their uniquely superb appearance.[4] H.J. "Joe" Justin, born in Lafayette, Indiana in 1859, sought out for Texas in 1879, eventually landing in Spanish Fort, Texas. While working at a barber shop, he learned how to repair boots and soon after he completed his first pair at home. He then opened a shoe repair and boot shop in which cowboys passing though town could place orders and pick up their new hand-crafted boots on their way back down the trail. [5]
[edit]
Justin's Growth Begins

Joe's new wife, Annie Allen, created the made-to-measure boot mail-order kit, a brand new idea for this market. The kit included a twenty-inch ruler, a chart diagramming foot and boot parts and a hand-written letter stating the prices of the few leathers that were available at that time: black calf, retan and kangaroo. [6] The business began to boom after the Justin family moved it to Nocona, Texas, whereupon Joe added his two sons John and Earl as partners in 1908, creating H.J. Justins & Sons. In 1910, the real growth began, with Justin boots being sold in 26 states, Canada, Mexico, and Cuba for $11 a pair. [7] By 1925 John and Earl decided they were outgrowing Nocona and started looking toward Fort Worth, which could provide better railroad services, a larger labor pool, a larger bank and better post-office facilities. [8]
[edit]
John Jr. Continues the Growth

In 1948 John's son, John, Jr., bought the controlling interest of Justin Boot Company from his uncle Earl. He was wise enough to realize that times were changing and so were interests in cowboy boots. Blue, green, red and yellow leather were one of the newest additions he brought into the factories, in many differing contrasting combinations, along with wing tips and fancy collars. This started to mark the age of the boots as more of a fashion necessity than a working necessity. [9]

Justin Cowboy Boots have come a long way in their tumultuous past. Their most recent acquisition of Tony Lama Boot Company in 1991 made them the dominating company of the industry. Justin Industries, composed of Tony Lama, Nocona, and Justin, produces a staggering 3.5 million+ pairs of cowboy boots annually! [10]

Acme Boots

History

Acme Boots was founded in 1929, during the Great Depression. Two Chicago shoe manufacturers, Jessel Cohn and his son, Sidney, decided to move their children’s and infants' shoemaking plant from Chicago, Illinois to Clarksville, Tennessee.

They set up their business in a two-story brick building on Crossland Avenue and called it the Acme Shoe Manufacturing Company. They hired 100 employees and began producing sandal-like footwear for children and infants under the name Just-Kids. The shoes sold for 40 to 50 cents a pair. The Cohns continued their children’s business until 1935, when the senior Cohn returned home from a business trip to Texas. While there, Cohn saw a pair of western boots that cost $65.00, well beyond the reach of the average shoe buyer at the time.

Cohn took a pair of boots back to Clarksville to see how they were made. He studied the boots carefully, noting every detail of their construction. After his inspection, he and his son decided they could produce the same boots on an assembly line, allowing them to sell the boots for a better price.

A short time later, the Cohns dropped their children’s footwear line in favor of the boots and re-named the company Acme Boots. In the 1940s, Acme Boots became the largest maker of cowboy boots and remained the world's largest until the mid 1980s.

Acme Boots has since been held by various corporations, including Arena Brands of Dallas, Texas, which licensed the Acme Brand to the Texas Boot Company of Lebanon, Tennessee in 2000.

In 2002, Texas Boot put the Acme Boot brand up for sale, where it was purchased by H.H. Brown, a subsidiary of Berkshire Hathaway, and placed under the Double-H Boots brand label, where it remains today. Acme was purchased to create a price point product story to compliment the Double-H brand of western boots and footwear.

Using the manufacturing facilities, technology and resources of H.H. Brown, the Acme Boot line has improved comfort and cushioning, updated the leathers and materials while maintaining competitive pricing.

Since 1842, Fechheimer has been manufacturing quality uniforms to serve working men and women. Today, Fechheimer's resources are global, with manufacturing partners in Central and South America, Europe, Africa and Asia to complement our three Union plants in the United States.

Along with the largest in-stock offering available, Fechheimer offers custom programs made to detailed specifications to meet an agency's particular needs.

Our goal is to bring you, the customer, products and programs that keep you looking your sharpest and feeling your best, providing protection in all climates and conditions. With our famed Flying Cross brand synonymous with quality, you can Wear it With Pride.

Fechheimer is based in Cincinnati, Ohio and is proud to be a Berkshire Hathaway company.

Garanimals
From Wikipedia, the free encyclopedia

Garanimals is the name of a line of children's clothing separates, started in 1972 by Garan Incorporated. Each item of clothing features a hang-tag depicting one of several anthropomorphic animal characters, also called Garanimals. The philosophy behind Garanimals is that by making it easy for children to choose coordinated outfits by themselves (by choosing pieces with matching hang-tags), children gain self-confidence.

In February 2008 Garanimals was relaunched nationwide. The matching animal tag theme still exists only now more vibrant, modern styles and colors.

Russell Corporation

Type Subsidiary
Founded 1902
Headquarters Alexander City, Alabama
Industry sporting goods
Products Athletic shoes, apparel, sports equipment, accessories
Revenue $1.438 billion (FY 2005)[1]
Owner(s) Berkshire Hathaway
Website http://www.russellcorp.com/

Russell Corporation, headquartered in Alexander City, Alabama, is a manufacturer of athletic shoes, apparel, and sports equipment founded by Benjanmin Russell in 1902. Russell markets its products under many brands and subsidiaries, including Russell Athletic, Spalding, Huffy, and Brooks.

Formerly a publicly traded company, Russell Corporation has been a wholly owned subsidiary of Berkshire Hathaway since 2006.Contents [hide]
1 Berkshire Hathaway sale
2 Honduran sweatshop controversy & boycott
3 Corporate influences
4 Timeline[21]
5 References
6 External links

[edit]
Berkshire Hathaway sale

On 1 August 2006, Russell shareholders approved the sale of their firm to Berkshire Hathaway for $18.00 per share in cash. The acquisition was successfully completed on the following day, 2 August. Russell's brands joined Fruit of the Loom in the Berkshire Hathway family of products.[1]
[edit]
Honduran sweatshop controversy & boycott

Members of United Students Against Sweatshops march outside of Russell Corporation's offices in Atlanta, GA.

Since January 2009, Russell faces the largest collegiate boycott of an apparel company in history over violations of labor codes in its Honduras manufacturing facilities.[2][3][4] The boycott is coordinated by United Students Against Sweatshops in the United States and Canada, and supports the campaign by the Honduran garment workers' union SITRAJERZEESH.[5][6]

The Worker Rights Consortium has documented violations of the rights of workers by Russell in its factory Jerzees de Honduras. The report finds that Russell illegally fired nearly 2,000 in two of its factories, in retaliation for employees protesting working conditions and forming a union. The report also states death threats were allegedly made against some members of the union, though not by high-level company management.[7] In response, over eighty universities have canceled their contracts with Russell, including Duke University, Georgetown University, University of Columbia, University of Michigan, University of Miami, University of Washington, University of Houston, Penn State University, Rutgers, University of Minnesota-Twin Cities, University of Wisconsin–Madison, Purdue University, Cornell University, and the University of Florida.[8][9][10][11][12]

On May 13, 2009, sixty-five Congressmembers wrote to Russell CEO John Holland expressing their concern over the labor violations.[13] On June 25, 2009, Russell became the first collegiate licensee to be placed on probation by the Fair Labor Association.[14] Finally, a second report

At first, Russell said it was being unfairly targeted by the garment workers' union and student activists, and that the plant closure was due to the general down turn in the world economy[15]. Five schools announced they planned to continue doing business with Russell[16][17], however at least one of those, the University of Florida, has since terminated its licensing deal with Russell.[18][19] The company had issued a statement noting that it had recognized the unionization of the Jerzees de Honduras plant on October 3, 2007. In later statements, the company admitted wrongdoing, although the violations are yet to be resolved.[20]
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Corporate influences

Throughout its history, Russell Corporation has been involved in the manufacturing and selling of equipment for many professional, collegiate, and high school sports teams. Most notably of these are its stint of manufacturing uniforms for Major League Baseball, the production of official basketballs for the NBA (through its subsidiary Spalding), and the production of official footballs for the AFL (under the Sherrin Brand). Russell also makes uniforms for select high school and college baseball and football teams, which is one of the corporation's major divisions.
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Timeline[21]
1902 - The Russell Manufacturing Company is incorporated with Benjamin Russell as president. Assets include eight knitting machines and twelve sewing machines. The first finished product is a ladies' undershirt, or summer-weight vest. The mill's beginning capacity is 150 garments daily.
1912 - Electricity is installed in the Russell plant.
1914 - Russell purchases the Marble City Mills in Sylacauga, Alabama, but a cyclone demolished the plant that was covered by every known insurance, except windstorm.
1925 - Long underwear, sweaters, athletic shirts and ladies' bloomers are added to the production of ladies' vests, making a more complete product line.
1930 - The product line is again expanded to include fleece lined sweatshirts.
1932 - Russell acquires Southern Manufacturing Company which gives the company access to team apparel. This is the beginning of the Russell Athletic division's cutting and sewing operations.
1938 - Russell begins making woven athletic garments, including basketball, baseball and football pants and jackets.
1945 - Benjamin C. Russell dies and is succeeded as president by his brother, Thomas D. Russell.
1962 - Russell Manufacturing Company's name is changed to Russell Mills, Inc.
1967 - Russell develops the tear-away jersey.
1973 - Russell Mills' name is changed to Russell Corporation.
1983 - A line of styled sportswear and a line of basic T-shirts bearing the JERZEES label is introduced.
1985 - Russell's Common Stock begins trading on New York Stock Exchange (NYSE) on December 26, 1985.
1989 - Russell Corporation purchases Cloathbond, Limited, a knit apparel manufacturer in Livingston, West Lothian, Scotland. The name is later changed to Russell Corporation UK Limited.
1991 - Russell Corporation introduces NuBlend, a revolutionary poly/cotton fabric that virtually eliminates pilling. Russell also embarks on a massive recycling program with facilities located in Alexander City.
1994 - Russell Corporation acquires DeSoto Mills of Fort Payne, AL.
1995 - Sales reach $1 billion.
1997 - Russell is ranked 5th amongst apparel companies by Fortune Magazine in total return to investors over the 10 year period from 1986 to 1996.
1998 - John F. Ward is named Chairman, President, CEO of Russell Corporation.
1999 - Offices in Atlanta, GA are opened establishing dual headquarters with Alexander City.
2000 - Russell Corporation signs agreement to acquire the apparel operations of Haas Outdoors, Inc. and will create the Mossy Oak Apparel Company.
2002 - Russell acquires Moving Comfort
2003 - Russell acquires Bike Athletic and Spalding
2004 - Acquires AAI (American Athletic), Huffy Sports and Brooks Sports
2006 - On April 17, Berkshire Hathaway has agreed to purchase 100% of Russell in order to take the company private.
2006 - On August 2, Berkshire Hathaway officially purchased 100% of Russell Corporation.[1]
2006 - On August 3, Chairman and CEO John F. Ward resigned.
2009 - On January 29, the company announced it was closing its Atlanta headquarters

Fruit of the Loom

Fruit of the Loom is an American company which manufactures clothing, particularly underwear. The company's world headquarters are based in Bowling Green, Kentucky. One manufacturing facility still remains in Jamestown, Kentucky, and several other facilities are located across the Southeastern United States, from Louisiana to the Carolinas. Other facilities exist in Canada, El Salvador, Honduras, Europe and North Africa. Until the late 1990s, much of the manufacturing was done in the United States.Contents [hide]
1 Company Profile
2 History
3 Honduras sweatshop controversy
4 References
5 Sources
6 External links

[edit]
Company Profile

Fruit of the Loom's main business focus is on branded products for consumers ranging from children to senior citizens. The company is one of the largest manufacturers and marketers of men's and boys' underwear, women's and girls' underwear, printable T-shirts and fleece for the activewear industry, casualwear, women's jeanswear and childrenswear.

The company sells its products to all major discount chains and mass merchandisers, wholesale clubs and screenprinters. The company also sells to many department, specialty, drug and variety stores, national chains, supermarkets and sports specialty stores.

Fruit of the Loom is unique in offering an unconditional guarantee on all the products it sells. The brand has significant market share for basic apparel. The familiar logo with the apple, purple grapes, green grapes, currants and leaves is ranked one of the most recognizable trademarks worldwide. The company is a vertically integrated manufacturer.

The company also controls another long-known underwear brand, B.V.D. (Bradley, Voorhees, and Day). Other brands also manufactured and sold by the company are Funpals/FunGals, Screen Stars and Underoos. Brands once owned or marketed by Fruit of the Loom include Gitano, Munsingwear, Salem Sportswear, and Pro Player, which once had the naming rights to what is now LandShark Stadium (originally Joe Robbie Stadium) in Miami, Florida from 1996 to 2005, despite bankruptcy by the parent company in 1999.

Hanes and Jockey are the main competitors to Fruit of the Loom.

The name "Fruit of the Loom" is interpreted by many as a play on words with respect to a part of the Hail Mary prayer: "...blessed art thou amongst women, and blessed is the fruit of thy womb, Jesus." (cf. Gospel of Luke 1:42) The two phrases are unrelated: it is merely a coincidence that "womb" rhymes with "loom".

The familiar Fruit Of the Loom Guys consist of an apple, green grapes, purple grapes, and leaves that tend to change color often. They perform several songs and appear in all Fruit of the Loom commercials. The role of "Apple" is played by Rad Daly and the "Leaf" was played by Academy Award winning actor F. Murray Abraham.
[edit]
History

Fruit of the Loom headquarters building in Bowling Green, Kentucky.

The Fruit of the Loom brand dates back to 1851 in Rhode Island when Robert Knight, a textile mill owner, visited his friend, Rufus Skeel. Mr. Skeel owned a small shop in Providence, Rhode Island that sold cloth from Mr. Knight's mill. Mr. Skeel's daughter painted images of apples and applied them to the bolts of cloth. The ones with the apple emblems proved most popular. Mr. Knight thought the labels would be the perfect symbol for his trade name, Fruit of the Loom.

In 1871, just one year after the first trademark laws were passed by Congress, Mr. Knight received patent number 418 for the brand, Fruit of the Loom.

Much of its athletic outerwear was sold under the "Pro Player" label, a now defunct division.

The company was part of Northwest Industries, Inc., until NWI was purchased by William F. Farley in 1985 and renamed Farley Industries, Inc. Farley served as President, CEO, and majority shareholder for 15 years. Fruit of the Loom's sales revenue rose from approximately $500 million at the time of NWI's purchase to roughly $2.5 billion nearly 15 years later. Debt financing, once seen as brilliant, proved difficult to manage even as sales revenue quintupled.

The Fruit of the Loom Guys, popular advertising characters from the 1980s.

Fruit of the Loom filed for Chapter 11 bankruptcy protection in 1999 shortly after posting a net loss of $576.2 million. Its 66 million shares of outstanding common stock dropped in value from about $44 per share in early 1997 to just more than $1 by the spring of 2000. Reasons for the bankruptcy are varied. A large debt load which was assumed in the 1980s, a common practice at the time, did not help. William F. Farley, the company's former chairman, chief executive officer, and chief operating officer was forced out prior to bankruptcy in late 1999, after having piloted the company into massive debt and unproductive business ventures, including structuring the company into an off-shore entity in the Cayman Islands to avoid taxes.

The company was bought from bankruptcy by Berkshire Hathaway Corporation, controlled by legendary investor Warren Buffett, who wanted the valuable brand. He agreed in January 2002 to purchase the company for approximately $835 million in cash. The deal was concluded on April 29, 2002. A condition of the purchase required that former Chief Operating Officer and the then interim CEO, John Holland, remain available to be the CEO for the company.[1]

The company purchased Russell Corporation, effectively taking the former competitor private in a deal that was completed August 1, 2006.

The company announced the purchase of VF Corporation's intimate apparel company named Vanity Fair Intimates for $350 million in cash on January 23, 2007.[2]
[edit]
Honduras sweatshop controversy

Students protest outside Fruit of the Loom office in Telford over worker rights violations at the company's Honduras factories.

Beginning in January 2009, Fruit of the Loom and its subsidiary, Russell Corporation, face a major boycott over worker rights violations at its factories in Honduras, where it is the largest private employer.[3][4] The controversy has caused nearly 100 universities to terminate deals with Russell, leading to significant losses for Fruit of the Loom.[5][6][7]

MiTek, the world's leading supplier of connector products, engineering software and services, and manufacturing machinery to the truss fabrication segment of the building components industry, announced today the acquisition of TEE-LOK Corporation. TEE-LOK, based in Edenton, North Carolina, is a major supplier to the North American building components industry.

"We are delighted to have TEE-LOK as part of the MiTek team. The combination of TEE-LOK and MiTek will allow us to better serve our customers through improved software, services, and products," stated Gene Toombs, CEO of MiTek.

"TEE-LOK will operate as a separate subsidiary of MiTek and all of TEE-LOK's present employees will stay with the company. In addition, Bill Black, the former owner and CEO of TEE-LOK, will remain an active consultant and assist our team in all areas," explained Toombs.

Bill Black added, "We are pleased to be part of MiTek. Our entire team is looking forward to combining our talents with those of MiTek to give our customers even better customer service in the future."

MiTek, a subsidiary of Warren Buffett's Berkshire Hathaway Inc., has operations on five continents.

RC Willey Home Furnishings
From Wikipedia, the free encyclopedia


RC Willey Home Furnishings is a home furnishings company with stores in Utah, Idaho, Nevada and California. It was started in Syracuse, Utah by Rufus Call Willey as an appliance repair shop. RC Willey stores sell merchandise such as furniture, electronics, home appliances, mattresses, and flooring. It is currently owned by Berkshire Hathaway.Contents [hide]
1 History
2 Criticisms
3 References
4 External links

[edit]
History

Rufus Call Willey began selling appliances in 1932 as a door-to-door salesman of electric ranges and refrigerators. As business and clientele grew, he erected a 600-square-foot (56 m2) store next to his home in Syracuse, Utah during the summer of 1950.

William H. Child would wed Willey's daughter, Darlene in 1952 and took over the business in 1954 as Willey stepped down due to a fight with terminal cancer. Sheldon Child joined his brother in 1956 to operate R. C. Willey Inc. Bill's son Steve joined the firm in 1974 and over saw the electronics and appliances. Bill expanded from appliances to furniture, eventually into home exercise equipment, electronics, computers, cabinets and carpet.

RC Willey currently has stores in:
Murray,Utah
Orem,Utah
Provo Outlet Store,Utah
Riverdale,Utah
South Salt Lake,Utah
Syracuse,Utah
Taylorsville,Utah
West Jordan Outlet, Utah
Boise,Idaho
Henderson,Nevada
Reno,Nevada
Las Vegas,Nevada
Rocklin,California
[edit]
Criticisms

Unethical collection practices

RC Willey has often been accused of being excessively litigious averaging over 30,000 court cases per year in Salt Lake County alone [1], using aggressive collecting methods and taking disproportionate legal action against those who fail to make their payments such as serving legal papers and seeking default judgements against people facing financial distress such as job loss and medical problems, most of whom are unable to retain legal counsel. The Better Business Bureau has 99 complaints registered against R.C. Willey with 13 regarding "Billing or Collection Practices."[2]. RC Willey routinely retains Express Recovery Services which has 19 complaints regarding "Billing or Collection Issues" [3

Nebraska Furniture Mart
From Wikipedia, the free encyclopedia

Nebraska Furniture Mart is the largest home furnishing store in North America selling Furniture, Flooring, Appliances and Electronics. NFM was founded in 1937 by Mrs. B (Rose Blumkin) in Omaha, Nebraska. She worked in the business until age 103. In 1983, Mrs. B sold a majority interest to Berkshire Hathaway with the famous handshake deal with Warren Buffett. NFM now has three stores. The Omaha store is over 420,000 square feet (39,000 m2) of retail space and is on 77 acres (310,000 m2) of land. The Kansas City, Kansas store is also 420,000 square feet (39,000 m2) of retail space and is on 88 acres (360,000 m2) of land and sits across from the Kansas Speedway. The third store is in Des Moines, Iowa and is 24,000 square feet (2,200 m2) and sells appliances, flooring and televisions.

In the early 1990s, NFM opened a state of the art electronics and appliance store NFM Mega Mart which sells computers, software, music, videos and personal electronics items as well as TVs and appliances. In the early 2000s, the Mega Mart was branded like the other NFM buildings on campus as the Nebraska Furniture Mart Appliance and Electronics Store. In the Fall of 2007, The state-of-the art store was completely revamped from the inside out and includes a 200-foot (61 m) overhead warehouse connector and over 600 active video displays. Over 30 new jobs were added plus more cashiering stations and 12 new fully operational dream kitchens. The overhead connector connects the Appliance, Electronics and Computer Store to the 651,000-square-foot (60,500 m2) Distribution Center. Four exclusive shops were added including Sony, Bose, Apple and Harman@Home. Cox and DirecTV (as of January 2009) have their own full service customer service areas.

Nebraska Furniture Mart also owns Homemakers Furniture in Urbandale, Iowa, a suburb of Des Moines. Homemakers itself has a branch store in Altoona, Iowa, which is advertised as a factory outlet store.

According to Berkshire Hathaway's 2007 annual report, NFM's Omaha and Kansas City stores totalled about $400 million in sales each in the last fiscal year.Contents [hide]
1 "Mrs. B"
2 See also
3 References
4 External links

 

Rose Blumkin (b. 1893, d. 1998) was born Rose Gorelick outside Minsk, Russia. She moved to the United States in 1917. She started Nebraska Furniture Mart in the basement of her husband's pawn shop in 1937. She continued to be involved in day-to-day operations until shortly before her death at the age of 104. Although gifted at mental arithmetic, she was unable to read, write or even sign her name.

We're Still Here . . . and There . . . Today

Russian immigrant Rose Blumkin began her spectacular version of the American Dream in 1937 when she opened Nebraska Furniture Mart in the basement of a small shop in downtown Omaha. Following her simple business tenet to "Sell cheap and tell the truth," Mrs B's dedication and savvy would spearhead an uninterrupted 70-year sales growth span for the "Mart."

Even a devastating Category 5 tornado in 1975 couldn't alter the course that Mrs B and her store were following. With millions of dollars in damage to the store, Mrs. B and her son, Louie B, simply regrouped to build a bigger and bolder Nebraska Furniture Mart.

Amidst constant modernization updates to the store and 77-acre campus, a massive electronics and appliance store was added in 1994. In 2003 Nebraska Furniture Mart added a state-of the art warehouse and distribution center and a new store in Kansas City, Kansas. The Kansas City store which encompasses more than 1,000,000 square feet of retail and distribution facilities is the first location outside of Omaha to offer its full compliment of products.

So impressed with the reputation and success of his hometown store, billionaire investor Warren Buffett used a simple handshake with Mrs. Blumkin to close a famous $60 million deal. Mr. Buffett would say of Mrs. B and the 1983 purchase of 90% of the business, "I would rather have her word than that of all the Big 8 auditors . . . it's like dealing with the Bank of England."

In 2000 a remodel of Nebraska Furniture Mart Omaha was completed. Also in 2000, the Homemakers store in Des Moines became a part of Nebraska Furniture Mart.

In 2003 Nebraska Furniture Mart opened a new state-of-the-art 651,000 square foot distribution center in Omaha, and a new Nebraska Furniture Mart retail store in Kansas City, Kansas.

Larson-Juhl, a Berkshire Hathaway company, designs, manufactures and distributes fine custom frames of enduring style and superior craftsmanship. Larson-Juhl has a history of making custom frames for over 100 years and has grown to 24 facilities across the United States and locations in 15 countries around the world.

Larson-Juhl's designers travel the globe in search of unique finishes, exquisite embossings, and intriguing patterns, and its artisans take tremendous pride in the craftsmanship and quality of each frame. It's this attention to detail that makes Larson-Juhl custom frames the finest in the world.

Just as a Larson-Juhl frame adds beauty to a work of art, so does Larson-Juhl as an organization strive to conserve beauty in the environment. The company is proud to have partnered with American Forests to establish the Larson-Juhl Global ReLeaf Forest Foundation, which assists with forest restoration and establishment around the world.

About CORT

CORT, which was founded in 1971 with the merger of four small regional furniture rental companies is today the nation's largest provider of rental furniture, accessories and related services in the industry. We provide high-quality furniture to both individuals and corporations who desire flexibility in their furnishing needs. CORT is proud to have been recognized as a reliable first responder to disasters like 9/11 and Hurricane Katrina, and more recently, we were chosen for the second time by the US Census Bureau to set up field offices for the 2010 Census. These types of events require complicated logistics and demand quick and flexible solutions.

In 2000, CORT was proud to become part of Berkshire Hathaway, a company known for its corporate ethics and unrivaled financial stability.

In 2006, CORT began providing services designed specifically for relocating renters and individuals on domestic or international temporary assignments. CORT recognized that companies need their key talent to hit the ground running and maintain optimal levels of productivity while maximizing cost efficiencies at the same time.

Our services range from locating furnished and unfurnished, temporary or long-term, apartment or private rental housing; guided community tours, settling-in and other destination services.

CORT's vast service operations footprint, with 105 showrooms, 95 clearance centers and 97 warehouses have allowed us to serve customer needs in over 1700 different locations across the country. In 2008, CORT expanded its operation to the U.K. through the purchase of Roomservice Group and has built a partner network that can service customer needs in over 50 countries worldwide.

As an organization, CORT's greatest assets are the more than 2,000 employees who understand the difficulties and stresses involved with major transitions. Our company's motto, "Wherever you're heading, we'll be there" is CORT's commitment to making your transition as smooth and pain-free as possible.

Jordan's Furniture

Jordan's Furniture is a prominent furniture retailer in eastern Massachusetts and southern New Hampshire, with locations in Reading, Avon, and Natick, Massachusetts and Nashua, New Hampshire.

History

The company was started by Samuel Tatelman in 1918 in Waltham, Massachusetts. Samuel sold furniture out of the back of a truck until 1926. In the late 1930s, his son Edward joined the business. In 1973, Barry and Eliot Tatelman took over the business from their father, Edward. They stopped advertising on the back page of the Waltham paper and started on radio. In 1983, Barry and Eliot built the Nashua, New Hampshire location, and it was extremely successful.

In 1987, they opened the Avon, Massachusetts location, creating the largest traffic jam ever recorded on Route 24. Barry and Eliot had to go on the radio to beg people not to come. Customers stood in line for hours waiting for their turn to go into the showroom.

On Mother's Day 1992, the Motion Odyssey Movie (MOM) opened in the Avon store, after five years of planning and a $2.5 million investment. Over 1 million people experienced MOM, raising more than $300,000 for non-profit organizations.

On April 17, 1998, Barry and Eliot opened the biggest Jordan's Furniture to date with 120,000 sq ft (11,000 m2). of showroom space and a Mardi Gras/Bourbon Street theme, the Natick, Massachusetts location introduced Jordan's to the MetroWest area.

In October 1999, the Tatelman brothers sold the company to investment firm Berkshire Hathaway. The sale was intended to increase the financial backing of Jordan's Furniture for future growth. To celebrate, each employee received a financial gift of 50 cents for every hour ever worked at Jordan's. Operationally, nothing changed. Barry and Eliot remained at the helm, still starring in all radio/tv commercials and as integral parts of the company.

On Thursday, August 22, 2002, the IMAX 3D Theater at Jordan's Furniture in Natick opened its doors to the public. This new venue offered a new level of "shoppertainment" in Jordan's Furniture history. The Waltham store closed in 2004, the day the new Reading, Massachusetts store opened, which was the largest of Jordan's locations. It includes a complete showroom, warehouse, and 3D IMAX movie theater. In addition, Jordan's opened a 750,000 sq ft (70,000 m2) Warehouse/Office complex in Taunton, Massachusetts. In 2005, the warehouse underneath the Avon store was converted into the Colossal Clearance Center, containing over 60,000 square feet (5,600 m2) of clearance merchandise.

Eliot Tatelman still represents the public face of the company. He and his brother Barry have become pop culture icons throughout New England due to their commercials spoofing major national or international advertising campaigns. The origins of the name of the company are uncertain; the brothers have speculated that their grandfather chose the name out of a hat.

Barry Tatelman left Jordan's Furniture in December 2006, according to The Boston Globe,“ ...to pursue other interests such as helping to produce a Broadway show Dirty Rotten Scoundrels, starring actor John Lithgow. . . . Besides Broadway, Barry Tatelman will dabble in Hollywood. He is a principal of a new film company called "Filmshop" and is working on a TV series, according to a Jordan's press release. ”

[edit]
Monster deals
[edit]
Monster deal

As a promotion in 2007, Jordan's offered full rebates on certain pieces of furniture bought between March 7 and April 16 - provided the Boston Red Sox won the World Series. The store took out an insurance policy for approximately twenty million US dollars. Since the Red Sox did win the World Series, Jordan's Furniture gave an estimated 30,000 qualified orders away for free [1].
[edit]
Monster sweep

As a promotion in 2008, like in 2007 Jordan's offered full rebates on certain pieces of furniture but instead of just winning the world series the Boston Red Sox would have to sweep the World Series winning in the first four games.

Type Private
Founded 1918
Headquarters Taunton, Massachusetts
Key people Eliot Tatelman
Industry Furniture retailers
Products Furniture, Bedding, Mattresses
Owner(s) Berkshire Hathaway
Website www.jordans.com

On January 4, 2001, Shaw began a new chapter in its long and varied history with the completion of its sale to Berkshire Hathaway Inc., the holding company of renowned investor Warren E. Buffett. Berkshire Hathaway is known for buying and holding businesses that have a dominant market share, have strong management teams, and are considered undervalued in the stock market. With the move, Shaw ended its tenure as a public company.

Today, with the leadership of Vance Bell, CEO, and Randy Merritt, President, Shaw is a full-service flooring company with more than $5 billion in annual sales and approximately 26,000 employees. The employees' daily efforts illustrate their commitment and their determination to stay on top in an ever-changing and highly competitive marketplace.

Shaw Industries is a flooring manufacturer headquartered in Dalton, Georgia. It agreed to be acquired by Berkshire Hathaway in 2000. As of 2006, it employed 32,000 people in the USA and Canada. It is considered the largest broadloom carpet maker in the world.

Shaw Industries is not related to The Shaw Group, a publicly-traded company in Baton Rouge, 

Shaw got its start in 1946 as Star Dye Company, a small business that dyed tufted scatter rugs. The events that transformed the company into the world's largest carpet manufacturer are too numerous to write...or even to be fully known. The philosophy guiding those events, i.e. meeting customers, determine their needs, and supplying those needs, hasn't changed much through the years.

Clarence Shaw, father of CEO Robert E. (Bob) Shaw and J.C. (Bud) Shaw, bought Star Dye Company in 1946. In 1958, Bob Shaw became CEO of the company, which was then jointly owned by the two brothers. With $300,000 in sales, the company expanded dramatically and soon started finishing carpet as Star Finishing Company.

In 1967, J.C. Shaw organized a holding company to acquire Philadelphia Carpet Company, founded in 1846. The holding company added Star Finishing to the fold one year later, marking the company's first move into carpet manufacturing. The holding company went public as Shaw Industries, Inc. in 1971 with approximately $43 million in sales and 900 employees. In 1985, Shaw made its first appearance on the list of America's largest corporations--the Fortune 500--with more than $500 million in sales and close to 5,000 employees.

Continually differentiating its service and adding value for customers motivated every major move in the company's development, among them:

- Generating its own yarn supply with the 1972 purchase of its first yarn plant - Seeing the potential of newly developed continuous dyeing processes and acquiring its first continuous dye plant in 1973 - Creating its own trucking subsidiary, dramatically improving shipments nationwide - Significantly expanding direct sales to retailers beginning in 1982 - Establishing regional distribution centers across the United States - Modernizing plants and equipment in the early 1980s, allowing it to respond quickly to such breakthroughs as stain resistant carpet - Decreasing the consumption of fuel, water, and electricity in the manufacturing process and finding innovative recycling solutions for manufacturing waste - Acquiring Amoco's polypropylene fiber production facilities in 1992 and providing consumers popular Berber styles - Starting the rug division in 1993 and the hard surfaces division in 1998 with the launch of Shaw Ceramics

The desire to be the industry's low-cost provider was also a determining factor in Shaw's decisions, namely the acquisitions that brought such respected names as Cabin Crafts and Sutton under the Shaw umbrella. It also played a role in one of the largest and most significant moves in the company's history: the merger of Shaw and Queen Carpets.

Queen's own legacy started when Harry and Helen Saul, parents of Shaw President Julian Saul, expanded their part time business into the full-time venture, Queen Chenilles. The year was 1946, the same year Clarence Shaw started Star Dye.

On January 4, 2001, under the guidance of CEO and President, W. Norris Little, Sr. and owner Bob Shaw, Shaw Industries began a new chapter in its long and varied history with the completion of its sale to Berkshire Hathaway Inc., the holding company of renowned investor Warren E. Buffett. Berkshire Hathaway is known for buying and holding businesses that have a dominant market share, have strong management teams, and are considered undervalued in the stock market. With the move, Shaw ended its tenure as a public company.

Today, with the leadership of Vance Bell, CEO, and Randy Merritt, President, Shaw is a full-service flooring company with more than $5 billion in annual sales and approximately 30,000 employees. The employees' daily efforts illustrate their commitment and their determination to stay on top in an ever-changing and highly competitive marketplace.

For a complete picture of Shaw's history, Shaw recommends, Shaw Industries: A History by Randall L. Patton -- From The University of Georgia Press

Precision Steel

During the late 1930's, our founder, Mr. George C. Tinsley, worked in the Chicago area as a sales representative for a major steel mill. During this time period, Mr. Tinsley became aware of the need for a metal service center that would be able to supply customers who were unable to buy metal in mill quantities.

In 1978, Precision Brand Products was incorporated as a separate entity owned by Precision Steel. This change was made in order to increase Precision Brand's autonomy so it could respond faster to the changing needs of the industrial distribution market.

During 1979, Precision Steel and subsidiaries were sold to Wesco Financial Corporation that is located in Pasadena, California.

Berkshire Hathaway Inc. to Acquire Applied Underwriters Inc.
OMAHA, Neb. & SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 2006--Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) today announced it has agreed to acquire Applied Underwriters and all of its subsidiaries, including its North American Casualty insurance companies.


Applied Underwriters is a privately held company that is the industry leader in integrated workers' compensation solutions (www.applieduw.com). Terms of the transaction were not disclosed. The transaction remains subject to customary closing conditions.

Applied Underwriters will continue to be managed by its founders, Chairman and Chief Executive Officer Sidney R. Ferenc, and President and Chief Operating Officer Steven Menzies, as well as the rest of its current management team. The Company maintains its national operations center in Omaha, Nebraska. It will remain headquartered in San Francisco, and all of its business operations will continue as usual.

"We are delighted to become partners with Sid and Steve," said Warren Buffett, Berkshire Hathaway Chairman and Chief Executive Officer. "We invest in proven companies that are industry leaders, and that offer significant growth potential. Applied's management team has the disciplined mindset necessary to lead a profitable underwriting operation."

"Becoming part of Berkshire Hathaway's family of companies is a terrific opportunity for our management, staff and employees," said Mr. Ferenc. "This acquisition will provide tremendous value to our agents, brokers, and their customers. We look forward to a long and mutually rewarding relationship."

"We're pleased to join one of America's best managed and most successful businesses," added Mr. Menzies. "Following more than 10 years of effort to position Applied Underwriters and our subsidiaries as the leader in integrated workers' compensation solutions, we are confident that this exciting development will take our businesses to an even stronger national leadership position within the industry."

Applied Underwriters provides business insurance solutions for a wide range of companies, with specific expertise in crafting workers' compensation and business services solutions for small and medium-sized enterprises. Applied's products include SolutionOne(R) and EquityComp(TM).

Berkshire Hathaway and its subsidiaries engage in diverse business activities, among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
Contacts
Berkshire Hathaway, Omaha
Marc Hamburg, 402-346-1400
or
Applied Underwriters, San Francisco
William Strawn, 415-403-0800 x17

Johns-Manville
From Wikipedia, the free encyclopedia This article is missing citations or needs footnotes. Please help add inline citations to guard against copyright violations and factual inaccuracies. (January 2008)


Johns-Manville is an American corporation based in Denver, Colorado that manufactures insulation, roofing materials, and engineered products. The stock was included in the Dow Jones Industrial Average from January 29, 1930 to August 27, 1982 when it was replaced by American Express. Berkshire Hathaway bought the company in 2001. Chairman & CEO Jerry Henry retired in 2004; Steve Hochhauser became Chairman, President & CEO. Todd Raba succeeded him in the summer of 2007; Raba came from Mid-American Energy Holdings, another Berkshire Hathaway company.

Manville, New Jersey is named for the company; it had a large plant in the borough.
[edit]
History

The company was founded as the H. W. Johns Manufacturing Company in New York City in 1858 as an early asbestos manufacturer of roofing materials.

The Manville Covering Company was founded in Wisconsin in 1885 by C. B. Manville. C. B. Manville's grandson was the much-married socialite Tommy Manville.

H. W. Johns and Manville merged in 1901 to form H. W. Johns-Manville, renamed Johns-Manville in 1926.

Industrialist Lewis H. Brown was president of the Johns-Manville Corporation in the 1930s.

The Canadian branch of the corporation was involved in the extremely violent Asbestos Strike in Canada in 1949.

The company actively marketed its insulation services through a range of materials featuring Rosemary Melcher in 1978.

The corporation also faced major class action lawsuits in the 1980s based on asbestos-related injuries such as mesothelioma. When Mansville filed for chapter 11 bankruptcy protection in 1982, it was the largest company in United States history to have done so.

The bankruptcy was resolved by the formation of the Manville Trust to pay asbestos tort claimants in an orderly fashion by giving the trust the lion's share of the equity in the company. The bankruptcy took over 5 years to process and resulted in protracted litigation. The Manville Trust is still in operation today.

ISCAR Metalworking
From Wikipedia, the free encyclopedia

Iscar Metalworking is a toolmaking company based in Israel, founded by Stef Wertheimer.

The company was founded in 1952 in a wooden garage behind the home of Stef Wertheimer. After several years of steady expansion, the company headquarters moved to its current site in the Tefen Industrial Zone, situated in Israel's Western Galilee.

Iscar has expanded from a single marketing and manufacturing facility in Israel to a multinational company with representation in over 50 countries. Its production facilities are highly automated; at night, a single employee runs the plants on a computer, from home.[1]

In May 2006, Berkshire Hathaway, chaired by Warren Buffett, purchased an 80% stake in Iscar for US$4 billion. It was the first time in Berkshire's long history that it acquired a company based outside of the United States.

In 2008, Mr. Buffett called the acquisition of Iscar a "dream deal" that surpassed all his expectations. He personally attended the inauguration of a new production plant in Dalian, China.[2]

The CEO of Iscar is Jacob Harpaz. The company has 140 subsidiaries in 65 countries. [3]
[edit]
International Offices

Iscar has production facilities in Israel, France, Argentina, Germany, Brazil, Italy, The United States of America, Netherland, Spain, South Korea, Switzerland, Turkey and the United Kingdom.[4]

Clayton Homes
From Wikipedia, the free encyclopedia

Clayton Homes, a component company of Berkshire Hathaway, is the United States' largest manufacturer of manufactured housing. The company is vertically integrated; it builds, sells, finances, leases, and insures manufactured and modular homes. Clayton's corporate headquarters are in Maryville, Tennessee. It operates 35 manufacturing plants in the United States and markets its products in 49 states through 448 company-owned retail outlets and more than 1300 independent retailers.[1][2] Its subsidiary Vanderbilt Mortgage and Finance, Inc., specializes in mortgages for manufactured homes, providing more than $11.0 billion in loans for more than 275,000 customers. Another subsidiary provides insurance for 160,000 families.[1]

The company was founded by Jim Clayton in 1966. The company went public in 1983, trading on the New York Stock Exchange.[3] It was acquired by Berkshire Hathaway Inc. in 2003 for $1.7 billion[4] Kevin T. Clayton, son of the founder, is current President and CEO.[2]

According to its website, Clayton owns and operates 68 manufactured housing communities and 12 subdivisions[1]. However, in July 2007 Clayton contracted to sell 65 manufactured housing communities in 11 states.[5] They produce homes under the brand names of Cavalier Homes, Clayton Homes, Crest Homes, Gideon Homes, Giles Industries, Golden West Homes, Karsten Company, Marlette Homes, Oakwood Homes, Schult Homes and Southern Energy Homes.

Clayton manufactures one- and two-story homes that range from 500 sq ft (46 m2). to 2,400 sq ft (220 m2). in floor area and from $40,000 to more than $100,000 in price.[2]

We´ve helped people just like you buy manufactured homes since 1934, building more than 1.5 million homes and winning multiple awards for design and construction. We build, sell, finance, lease and insure manufactured and modular homes as well as relocatable commercial and educational buildings. We have 12,000 team members, 35 home building facilities and more than 1,800 home centers. We also finance more than 325,000 customers and insure 160,000 families. Clayton Homes also owns and operates 18 subdivisions. In 2003, Warren Buffett and Berkshire-Hathaway, Inc. acquired Clayton Homes.

2003
Attracting the attention of Mr. Buffett.

Clayton becomes part of Berkshire Hathaway, Inc., the holding company founded by legendary businessman Warren Buffett. The merger broadened Clayton’s lending stability and ensured access to financing for homeowners. Joining forces with Buffett meant big things for the future, but it also kept Clayton’s local roots intact, with management, headquarters and 7,000 loyal team members staying in place.

Benjamin Moore & Co.



Benjamin Moore & Co. is an American company that produces paint. It is owned by Berkshire Hathaway. Founded in 1883, Benjamin Moore is based in Montvale, NJ.
[edit]
History

In 1883, Benjamin Moore and his brother Robert opened Moore Brothers in Brooklyn, New York. They started with $2,000 and one product, "Moore's Prepared Calsomine Finish," which was sold exclusively through independent retailers. Moore Brothers built their company on Benjamin Moore's belief in "the exercise of intelligent industry in the spirit of integrity."

Today, Benjamin Moore & Co., a Berkshire Hathaway company, is a manufacturer and retailer of coatings and provider of related goods and services for decoration and preservation. Benjamin Moore & Co. manufactures at 7 plants, distributes from 22 facilities, and sells paints, stains, and finishes through a network of more than 4,000 independent retailers across North America.

Mr. Warren Buffett (right), CEO of Berkshire Hathaway, and Mr. Harrold Melton, President of Acme Brick Company sat down after Acme's acquisition by Berkshire in 2000 to discuss Acme Brick's role--past and future--in helping build America.

HARROLD E. MELTON: Warren, being a part of Berkshire Hathaway is really exciting. Talk about unlimited potential! What were some of your initial thoughts when you first considered acquiring Acme?

WARREN E. BUFFETT: Harrold, I must tell you that I was delighted to find a company with such a long record of providing quality products and services. Everything about Acme defines the type of company in which we like to invest. Your business is solid and easy to understand, just like Coke®, Gillette®, GEICO® and American Express®. We place a high value on investing in companies with strong brand positions in their markets.

While reading Acme's history, I was amazed at all of the challenges that Acme has had to address in the years since having been founded in 1891. How did that happen, I asked myself. As I kept reading, the answer became clear. Time and again over the decades, Acme people have consistently stepped forward, not only in times of crisis but also in times of tremendous opportunity. These are people who have always been committed to the company's success and who have always understood the importance of the work that they were doing.

HEM: Warren, few types of work are more meaningful than construction. Can you think of another industry that contributes as much to our nation's permanent wealth as the creation of beautiful, enduring places of shelter for families and businesses? When you think about it, the loyalty that people feel for our company is perfectly understandable.

WEB: Here is one fairly clear indication of Berkshire Hathaway's management approach to the operation of our member companies. During the past 34 years, Berkshire Hathaway has never had an operating officer leave except for retirement or death. In fact, the great majority of our subsidiaries are still run by the same executives who brought them to Berkshire in the first place. We buy well-run companies and let them run.

HEM: Warren, that's quite an achievement during this era of constant managerial change. Does this philosophy also extend to Berkshire Hathaway's retention of the companies that they acquire?

WEB: Yes. We buy companies to keep. I have an enormous reluctance to sell our wholly owned businesses under almost any circumstances. I think of my life's business work as a large canvas. I'm painting a picture of a very complete group of fundamentally sound businesses. These companies will continue to serve our nation for many decades to come. Acme will occupy a prominent place on that canvas.

I'm very excited to be a participant in your challenging, critically important business of helping build our nation's infrastructure.

HEM: By the way, Warren, I know from reading your annual reports that people suggest new acquisitions for Berkshire--and that you occasionally act on their suggestions. If you received a tip about a manufacturer of artificial stucco sheathing, what would be your response?

WEB: Not a chance.

Acme Brick

Acme Brick Company is an American manufacturer and distributor of brick and masonry-related construction products and materials. Founder, George E. Bennett (October 6, 1852–July 3, 1907), chartered the company in Alton, Illinois as the 'Acme Pressed Brick Company' on April 17, 1891. The company grew to become the largest American-owned brick manufacturer by the mid-20th century, was the first of its type to offer a 100-year limited guarantee to its customers, and was acquired by Berkshire Hathaway, Inc. on August 1, 2000.Contents [hide]
1 History
2 Manufacturing plants
3 Sales offices
4 References
5 External links
6 See also

[edit]
History
In 1890, Acme Pressed Brick Company was established fifteen miles (24 km) southwest of Weatherford near present-day Farm Road 113, in southwestern Parker County, TX. The company town that evolved from the establishment of the manufacturing plant was called 'Bennett'. The community included Acme Brick homes (for 100 employees and their families), a church, a public school, and a general store.
In 1916, Acme Pressed Brick stockholders elected new officers, applied for a Texas charter, began doing business as Acme Brick Company, and dissolved the company chartered in Illinois. Walter R. Bennett (George E. Bennett's son) was elected the first president of the newly renamed Acme Brick Company.
In 1968, a merger of the Acme Brick Company and the Justin Boot Company resulted in the formation of the First Worth Corporation.
In 1972, First Worth Corp. changed its name to Justin Industries, Inc., a 'parent' corporation who would grow to acquire many 'children' companies.
In 1976, Featherlite (then known as Kingstip-Featherlite) was acquired. Featherlite began as a Texas-based, privately held company in 1949. Featherlite began acquiring concrete block companies in 1953 and continued its expansion over the years - now operating 7 block producing facilities and 2 cement bagging facilities in Texas and 3 other locations.
In 1981, as housing starts hit a 35-year low, Acme built inventory: 400 million brick were manufactured by the year's end.
In 1984, record housing starts propelled Acme to record sales years in 1983 and 1984.

Acme Brick stamps its logo into the end of select bricks.
In 1987, Acme began stamping its logo on one end of select residential brick. This tradition in brand recognition continues today.
In 1993, Troy Aikman, Hall of Fame quarterback for the Dallas Cowboys football team, became an Acme Brick spokesperson - initially in radio and print advertising, and later on television.
In 1994, American Tile Supply, a tile distributor and retailer in Texas, was acquired.
In 1997, Fort Worth-based Innovative Building Products, developer and manufacturer of a mortarless installation system for glass block windows, skylights, shower enclosures, and floors, was acquired.
In 2000, the Justin Industries Board of Directors approved the sale of the publicly traded company to Warren Buffett and Berkshire Hathaway. The boot companies and the building companies were split to form Justin Brands and Acme Building Brands as separate entities. At the time of the acquisition, Acme Building Brands was 'parent' to the following four 'child' companies:
Acme Brick Company, the leading domestically owned United States manufacturer of face brick.
Featherlite Building Products Corporation, the leading Southwest producer of concrete masonry products.
American Tile Supply Company, a major Texas distributor of ceramic and marble floor and wall tile.
Justin Brands - Justin Boot Company, Nocona Boot Company, Tony Lama Company, and Chippewa Shoe Company.
In 2001, Acme Brick set a new company record for shipments - exceeding 1 billion company-manufactured bricks shipped.
In 2003, Acme Brick's residential products started carrying the Good Housekeeping Seal.

Brick mock-up panels are sometimes created to aid commercial customers in the selection process. These bricks are likely candidates for the new Acme Brick Company Headquarters building.
On October 6, 2006 (October 6th was also the birthday of Acme's founder, George Bennett), Acme Brick broke ground for the company's new headquarters building to be located in southwest Fort Worth. The 77,000-square-foot (7,200 m2), three-story building was completed in 2007.
[edit]
Manufacturing plants

Acme Brick manufactures brick (primarily for U.S. customers) at plants located in six states:
Clarksville, Arkansas (known as Acme's Eureka Brick Plant)
Fort Smith, Arkansas
Jonesboro, Arkansas (known as Acme's Wheeler Plant)
Malvern, Arkansas (Acme has 3 plants in Perla; Perla Westgate, Perla Eastgate, and Acme's Ouachita Plant)
Castle Rock, Colorado (known as Acme's Denver Brick Plant)
Kanopolis, Kansas
Weir, Kansas
Holly Springs, Mississippi
Oklahoma City, Oklahoma
Tulsa, Oklahoma
Bridgeport, Texas
Denton, Texas
Elgin, Texas (Acme has 2 plants in Elgin)
Garrison, Texas
Malakoff, Texas (known as Acme's Texas Clay Plant - Acme has 2 plants in Malakoff)
McQueeney, Texas
Millsap, Texas (Acme's first plant - also known as the 'Bennett Plant')
Sealy, Texas
Springfield, Minnesota (known as the 'Acme Ochs Plant')
[edit]
Sales offices

Acme Brick sells manufactured and purchased products from sales offices located in ten states:
Arkansas (Fort Smith, Jonesboro, North Little Rock, Russellville, and Springdale)
Colorado (Castle Rock)
Kansas (Olathe and Wichita)
Louisiana (Alexandria, Baton Rouge, Lafayette, Lake Charles, Monroe, New Orleans, and Shreveport)
Mississippi (Holly Springs)
Missouri (Joplin, Maryland Heights, and Springfield)
New Mexico (Las Cruces)
Oklahoma (Oklahoma City and Tulsa)
Tennessee (Jackson and Memphis)

Texas (Abilene, Amarillo, Austin (Round Rock), Bryan, Beaumont, Corpus Christi, Denton, El Paso, Euless, Houston, Lubbock, Longview, Midland, San Antonio, San Angelo, Temple, Texarkana, Tyler, Waco, and Wichita Falls)

Type Private
Founded 1891, Bennett, Texas, USA
Headquarters Fort Worth, Texas, USA
Key people Dennis Knautz, President and CEO
Industry Manufacturing and Distribution
Products Brick, Tile, Concrete Block, Glass Block Systems, and Cut Natural Stone
Owner(s) Berkshire Hathaway
Employees 2,913 (as of 4/19/2006)
Website www.brick.com

Blue Chip Stamps
From Wikipedia, the free encyclopedia

Blue Chip Stamps started as a trading stamps company called "Blue Chip Stamp Co." They were a competitor to S & H Green Stamps.Contents [hide]
1 History and background
2 Acquisitions
3 References
4 External links

[edit]
History and background

In 1963, the United States government began an antitrust action against Blue Chip Stamp. In 1967, the parties agreed to a consent decree which led to the creation of a new company "Blue Chip Stamps".

In 1975, a lawsuit filed by Blue Chip Stamps was decided by the Supreme Court in the opinion Blue Chip Stamps v. Manor Drug Stores.[1] This ruling helped establish the precedent that only buyers or sellers of securities can file suit for damages due to deceptive practices.

Berkshire Hathaway, the investment vehicle of Warren Buffett, began investing in Blue Chip Stamps in 1970. Berkshire's investment in Blue Chip went from 36.5% in 1977, to 60% in 1979, and finally merged in a stock swap in 1983.[2]

According to Buffett's 2006 letter to Berkshire shareholders, Blue Chip had 1970 sales of $126 million as about 60 billion of "stamps were licked by savers, pasted into books, and taken to Blue Chip redemption stores." He also said, "When I was told that even certain brothels and mortuaries gave stamps to their patrons, I felt I had finally found a sure thing." Sales dropped to $19.4 million in 1980 and $1.5 million in 1990. In 2006, revenues came in at $25,920.[3]
[edit]
Acquisitions

On January 3, 1972, Blue Chip obtained a controlling interest in See's Candy Shops. Blue Chip later acquired 100% of See's for an overall price of $25 million.

Wesco Financial Corporation is currently an 80.1% owned subsidiary of Blue Chip Stamps.

GEICO: The Graham and Buffett Company

A history

GEICO, the Government Employees Insurance Company, began life in 1936 when a Texan by the name of Leo Goodwin saw potential in providing low cost insurance to government employees who statistically had lower claims than the public as a whole. Goodwin calculated correctly that direct marketing to potential customers would produce more business at less cost.

The venture was successful and in 1947, Benjamin Graham’s investment trust took a 50 per cent share in the business. Graham subsequently floated it as a public company allocating the shares to investors in his trust. He took shares himself and retained his shareholding until he died.
Warren Buffett and Geico

Warren Buffet’s first flirtation with GEICO took place in 1943 as a fledgling investment consultant. Roger Lowenstein tells an anecdote about this in his book Buffett: The Making of an American Capitalist.

Apparently, Buffett, knowing of the involvement of Graham, his mentor, with GEICO, decided to look it over. He visited the company’s offices only to find them closed. The nightwatchman told him that there was someone still working there, late, and agreed to take Buffett in to meet him. The late worker turned out to be Lorimar Davidson, who was to end up running the company.

Buffett interrogated Davidson for several hours, and each man made a good impression on the other. Because of these discussions, Buffett’s investment partnership took a small holding in GEICO, which it eventually sold down.

By 1974, the company was not travelling well. The government had brought in no-liability insurance in some areas, the company had extended its clientele to higher risk categories, and there had been inadequate provision for future claims.

In 1976, it announced a loss of 126 million dollars and the company’s shares, which had traded as high as $42, were down to just under $5. The 1976 Annual General Meeting was a near riot with angry shareholders challenging management. By then, the shares were down to about $2.

There was then a change in company management with J J Byrnes taking over the key role. Byrnes made drastic changes, cancelling high-risk policies, laying off staff and moving office. Despite these changes, the regulatory authorities were hovering over the company’s near carcass.

Buffett had always kept his eye on the company and took the view that despite its problems, the company’s core business was sound.

The company’s premiums also attracted Buffett. Insurance companies receive premiums against the possibility that they may have to pay out claims in the future. Provided the company follows sound actuarial practices and makes adequate provision for claims, this gives it large amounts of cash to invest in profit making ventures. This is what Buffett calls the ‘float’. He saw this as an opportunity to provide cash resources to buy businesses and invest in shares.

Through Katherine Graham, the proprietor of the Washington Post, Buffett arranged to meet with Byrnes and was apparently impressed enough to buy, via Berkshire Hathaway, 500,000 shares in the company with a standing order to buy more.

The company started to improve, managing to offload a lot of its reinsurance risk. Salomon Bros came to the party with an underwritten preferred stock issue (of which Berkshire took 25 per cent) and Buffett interceded with the insurance regulators to ensure that GEICO kept its licences.

Six months later, the shares had risen to $8. Graham, who had by then retired, must have felt happy that his protégé had intervened.
The Buffett years

Over the years, GEICO went from strength to strength, Buffett always seizing the opportunity to increase the Berkshire shareholding. However, business started to drop off in the 1980s and by 1994, the share price had fallen again. Buffett grabbed his chance and bought out the other shareholders for a total price of 2.3 billion dollars.

GEICO is now a huge and profitable insurer. Its value to Berkshire however, has not been merely its ability to make good returns from insurance activities, but as a ‘float’ to provide funds to enable Buffett and Berkshire to acquire good businesses and shareholdings.

Swiss Re (Schweizerische Rückversicherungs-Gesellschaft AG, SIX: RUKN) is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re operates through offices in more than 25 countries. General Electric owns 8.9% of the firm.

History

The Swiss Reinsurance Company of Zurich was founded on December 19, 1863 by the Helvetia General Insurance Company (now using the trade name of Helvetia insurance) in St. Gallen, the Schweizerische Kreditanstalt (Credit Suisse) in Zurich and the Basler Handelsbank (predecessor of UBS AG) bank in Basel.

Like the fire of Hamburg in 1842 (which led to the foundation of the first professional reinsurers in Germany, [1]), the great fire of Glarus in 1861 showed that insurance coverage was totally inadequate in Switzerland in the event of such a catastrophe. Hence the need to provide more effective means of coping with the risks posed by such devastation.

On 10/11 May 1861, more than 500 houses went up in flames in the town of Glarus. Two thirds of the town sank into rubble and ashes; around 3000 inhabitants were made homeless.

The company’s articles of association were approved by the government of the Canton of Zurich on 19 December 1863. The foundation capital, which was 15% paid up, amounted to 6 million Swiss francs. The official foundation document bore the signature of the poet Gottfried Keller, who at the time was first secretary of the Canton of Zurich

The Swiss Reinsurance Company was the lead insurer of the World Trade Center during September 11 attacks which led to an insurance dispute with the owner, Silverstein Properties.

In 2009, Warren Buffett invested $2.6 billion as a part of Swiss Re's raising equity capital.[2][3] Berkshire Hathaway already owns a 3% stake, with rights to own more than 20%.[4]
[edit]
Corporate headquarters

Swiss Re is headquartered in Zurich where the parent company’s main premises has stood on the shores of Lake Zurich since 1864. On 31 October 2008, Swiss Re completed GBP 762 million acquisition of Barclays PLC's Barclays Life Assurance Company Ltd.
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London headquarters

Its new London headquarters are located in the award-winning 30 St Mary Axe tower, which opened on May 25, 2004. 30 St Mary Axe is London's first environmentally sustainable tall building. Among the building's most distinctive features are its windows, which open to allow natural ventilation to supplement the mechanical systems for a good part of the year.

The landmark London skyscraper, designed by architect Norman Foster and popularly known as 'the gherkin’, was confirmed sold on February 5, 2007 for over £600 million (US$1.18 billion) to a group formed of IVG Immobilien AG of Germany and Evans Randall of Mayfair (Financial Times 2007).
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American headquarters

The American headquarters of Swiss Re are located in Armonk, New York on a 127-acre (52 hectares) site overlooking Westchester County’s Kensico Reservoir. The facility, which houses more than 1,000 employees from the company’s Life & Health and Property & Casualty business units, was completed in 1999 and expanded in 2004.

Swiss Re also has offices in Atlanta, Avon, Boston, Calabasas, Chicago, Dallas, Fort Wayne, Hartford, Kansas City, Manchester, New York City, Philadelphia, San Francisco, and Schaumburg, Illinois. Swiss Re's Canadian office in Toronto, Swiss Reinsurance Company Canada, was named one of Greater Toronto's Top Employers by Mediacorp Canada Inc. in October 2008, which was announced by the Toronto Star newspaper.[5]
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Subsidiaries This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (January 2008)


Broker dealer Swiss Re Capital Markets (SRCM), is a broker-dealer and leading underwriter and developer in the insurance-linked securities market. Since 1997 SRCM has underwritten over USD 15 billion of ILS including Insurance-Linked Bonds (ILBs) also known as Catastrophe Bonds (Cat Bonds) for third-party clients and its parent, Swiss Re.

Swiss Re Capital Markets has developed new security types such as earthquake bonds. Swiss Re Capital Markets also developed the parametric index trigger, the ILS shelf program, the first ILS synthetic CDO, and the first extreme mortality bond (linked to life risk).

Conning Asset Management does third party asset management and is headquartered in Hartford, Connecticut.

In 2006, Fox-Pitt, Kelton completed a management buyout backed by J.C. Flowers & Co. Swiss Re had acquired FPK, a finacial services focused investment banking boutique and brokerage in 1998 for $200 million.[6]

Type Public (SIX: RUKN)
Founded 19 December 1863
Headquarters Zurich, Switzerland
Key people Stefan Lippe (CEO), Walter Kielholz (Chairman of the board)
Industry Financial services
Products Reinsurance, insurance, asset management
Revenue CHF 24.98 billion (2008)[1]
Profit ▼ (CHF 864 million) (2008)[1]
AUM CHF 125 billion (2008)[1]
Total assets CHF 239.9 billion (2008)[1]
Employees 11,560 (2008)[1]
Website www.swissre.com

United States Liability Insurance Group specializes in underwriting low premium, low hazard specialty insurance products. We are committed to making a difference to our Customers through well-designed products that are delivered with unparalleled speed, service and support.


A member of the Berkshire Hathaway family of companies, United States Liability Insurance Group is an A++ rated company that supports its products with financial strength and stability. In addition to our innovative products, we provide a broad range of marketing assistance to our Customers to help ensure their long-term success.

Wesco Financial

Wesco Financial

Wesco Financial Corporation (NASDAQ: WSC) is a diversified financial corporation headquartered in Pasadena, California.

Wesco was originally a savings and loan association. It is 80.1% owned by Blue Chip Stamps, which is wholly owned by Berkshire Hathaway, which is controlled by legendary investor Warren Buffett. Wesco is chaired by Charlie Munger, who is also vice-chairman of Berkshire Hathaway and the man that Buffett has often publicly referred to as his "partner". Munger, formerly a practicing attorney, is known for his straight-shooting style and his conduct at the annual Wesco shareholder meetings in Pasadena, where he often interacts with the outside investors at considerable length.

Wesco does business in three major categories; insurance, furniture rental, and steel service. The following wholly owned subsidiaries handle most of Wesco's business:
Wesco-Financial Insurance
Kansas Bankers Surety.
CORT Business Services Corporation, furniture rental.
Precision Steel Warehouse, Inc., a chain of steel service centers.

MS Property Company, which owns commercial real estate in Pasadena.

Type Public (NASDAQ: WSC)
Founded 1959
Headquarters Pasadena, California
Key people Charles T. Munger, Chairman of the Board
Robert H. Bird, President
Jeffrey L. Jacobson, VP & CFO
Industry Insurance,Furniture Rental,Steel
Revenue ▲ $888.30 million USD (FY 2005)
Owner(s) Berkshire Hathaway
Employees 2473 (17 at KBS, 2250 at CORT, 200 at Precision Steel, 6 at Wesco) (as of 2004)
Website www.wescofinancial.com

National Indemnity Company
From Wikipedia, the free encyclopedia

National Indemnity Company is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

National Indemnity group of insurance companies

National Indemnity Company
National Liability & Fire Insurance Company
National Fire & Marine Insurance Company
National Indemnity Company of the South
National Indemnity Company of Mid-America
Columbia Insurance Company

Medical Protective
From Wikipedia, the free encyclopedia

Medical Protective is an American liability insurance company for physicians and dentists. Medical Protective traces its roots back to a predecessor company, the Physicians’ Guarantee Company. Alpheus P. Buchman, MD of Fort Wayne, Indiana and a group of physicians formed the Physicians' Guarantee Company in 1899 to provide pre-paid legal defense services for medical malpractice lawsuits.[1] The company is considered one of the first companies to offer pre-paid legal defense services in the United States.[2] In 1902, Physicians’ Guarantee Company changed its name to the Physicians’ Defense Company.[3] In 1907, Byron H. Somers and Charles M. Niezer founded The Medical Protective Company and in 1913, Medical Protective acquired Physicians Defense Company.[4] Byron Somers and by his descendants ran Medical Protective until 1998 when General Electric purchased the company. In 2005, Warren Buffett's Berkshire Hathaway purchased the company for $825 million.[5]

It has annual premiums over $700 million and statutory assets over $2 billion.[5] Its products are underwritten by the Medical Protective Company and are distributed through a network of employee market managers and appointed agents. Company headquarters is located in Fort Wayne, Indiana.
[edit]
History

1899 - Recognizing that healthcare providers are increasingly being sued, Dr. Alpheus P. Buchman and others create Physicians' Guarantee Company (PGC) to provide pre-paid legal defense coverage.

1902 - PGC changes its name to Physicians' Defense Company (PDC), with Dr. Miles F. Porter as President, and Dr. Charles A.L. Reed (President of the AMA) on the board of directors.

1909 - PDC merges with Medical Protective and expands coverage to include indemnity coverage.

1920s - Byron H. Somers leads Medical Protective and the company becomes the largest insurer of healthcare providers in 17 states.

1930s - Medical Protective introduces a much broader coverage policy and helps shape the defense of medical practitioners; provides the first "medmal bible" to the industry, named "Brief on Malpractice Law."

1940s - Medical Protective defends well over 50,000 claims and provides physicians and dentists with continued coverage during their WWII military service.

1950s - Always with a vision towards the future of healthcare, Medical Protective begins insuring residents and interns during their training.

1960s - Medical Protective begins to expand coverage and increase limits and continues its national leadership position.

1970s - Medical Protective is one of the few carriers to survive the increasing number of medical malpractice suits that results in the industry's "first crisis."

1980s - While many carriers exit the market during the industry's "second crisis," Medical Protective continues to offer occurrence coverage and to award claim-free credits for policyholders without losses.

1990s - Focusing on the continuum of care, Medical Protective begins to insure small and community-based hospitals.

1998 - General Electric purchases Medical Protective and expands coverage countrywide.

2001 - Recognizing technology advancements, Medical Protective offers online risk management CME courses, and STATUS online coverage application.

2002 - While St. Paul Travelers and others exit the market during the industry's "third crisis," Medical Protective adds policyholders and expands to meet the needs of healthcare providers.

2005 - Medical Protective is purchased from GE by Warren Buffett's Berkshire Hathaway. Insureds have the long-term confidence that comes from being with Fortune Magazine's "World's Most Admired Insurer."

2006 - Rating agencies S&P and A.M. Best assign the highest financial strength ratings to Medical Protective, "AAA" and "A++" respectively.

2007 - Medical Protective insures stand-alone surgery centers, cancer treatment centers, dialysis centers and imaging centers, and forges partnerships with specialty organizations and associations to offer solutions to their members.

Berkshire Hathaway Assurance

Berkshire Hathaway Assurance

Berkshire Hathaway Assurance is an bond insurance company created by Berkshire Hathaway, Inc. in December, 2007.

[edit]
History

Berkshire created this government bond insurance company in December, 2007 to insure municipal and state bonds. These type bonds are issued by local governments to finance public works projects such as schools, hospitals, roads, and sewer systems. Berkshire is not guaranteeing BHA[citation needed], thus opening itself to competition from any number of investors who could easily assemble the $5 billion capital. BHA will begin in New York, then move to California, Puerto Rico, Texas, Illinois, and Florida.[1] On February 12, 2008, Warren Buffett announced a plan to add up to $5 billion in capital to BHA to enable it to provide reinsurance on municipal bonds currently guaranteed by Ambac, MBIA, and FGIC Corp.[2] Buffet also announced BHA had closed its first deal to insure $50 million in debt for a 2% fee.[2]

Kansas Bankers Surety Company
From Wikipedia, the free encyclopedia

Kansas Bankers Surety Company is an insurance company based in the United States. It is a subsidiary of Wesco Financial Corporation, a subsidiary of Berkshire Hathaway, the investment vehicle of Warren Buffett.

Central States Indemnity Company

Central States Indemnity Company

Central States Indemnity Company (CSI) is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

Central States Indemnity Company

Central States Indemnity Company

Central States Indemnity Company (CSI) is an insurance company based in Omaha, Nebraska. It is a subsidiary of Berkshire Hathaway.

General Re

General Re

General Reinsurance Corporation, often called General Re, is one of the world's largest reinsurance corporations. It owns a controlling interest in Kölnische Rückversicherungs-Gesellschaft AG (Cologne Re) and both companies operate together as Gen Re. As a reinsurer, it "insures insurance companies" i.e. it will pay a portion of an insurance company's claims in exchange for a portion of the premium received by the insurance company for policies that cover those claims "Gen Re" is a wholly owned subsidiary of Berkshire Hathaway, the holding company run by investor Warren Buffett. In good years, General Re is a large source of cash flow to Berkshire Hathaway and has provided much of the cash that is then used by the company to acquire additional subsidiaries. However, since General Re was acquired in December of 1998, it has run into a string of business and profitability issues. Problems have included emergence of losses on unprofitable business written in the 1990s and earlier, concentration of risk (and therefore huge claims) in reinsurance agreements covering 9/11 losses and most recently, questionable accounting practices on "finite risk" reinsurance contracts written with insurance giant American International Group in 2002.

GEICO

GEICO=

=The Government Employees Insurance Company, usually known by the acronym GEICO, is an American auto insurance company. GEICO is a wholly owned subsidiary of Berkshire Hathaway that as of 2007 provided coverage for more than 10 million motor vehicles owned by more than 9 million policy holders. GEICO writes private passenger automobile insurance in the District of Columbia and in all 50 U.S. states. The company is notable for its television advertising, with several prominent campaigns running simultaneously in national markets. Its mascot is a gecko that originally had an American accent but for marketing reasons was changed to a Cockney accent.

History

GEICO was founded in 1936 by Leo Goodwin and his wife Lillian to provide auto insurance directly to federal government employees and their families.[2] GEICO's original business model was predicated on the assumption that federal employees as a group would constitute a less risky and more financially stable pool of insureds, as opposed to the general public. Despite the presence of the word "government" in its name, GEICO has always been a private corporation.

An important figure in GEICO's history is David Lloyd Kreeger, who became president of the company in 1964 and helped steer it into a major insurance enterprise. In 1948, he formed a group of investors who bought into GEICO. He became senior vice president and general counsel of the company. Six years after becoming president of GEICO in 1964, he was named chairman and chief executive officer. He retained those titles until he retired in 1974. He continued as chairman of the executive committee until 1979, when he was named honorary chairman.[3] Intriguingly, the GEICO web site avoids any mention of Kreeger.[2]

In the 1970s, under Kreeger's leadership, GEICO began to insure the general public, after real-time access to computerized driving records became available throughout the United States. In 1996, GEICO became a wholly owned subsidiary of Berkshire Hathaway.

GEICO generally deals directly with consumers via the telephone and the Internet, freeing up capital that would otherwise be spent on employing insurance agents in the field. As a result, the company is now the 3rd largest direct writer of private auto insurance in the United States.[4]

At Buffet's Diversified Berkshire Hathaway, Insurance Still #1

By Josh Funk
May 4, 2007
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The mix of companies and investments billionaire Warren Buffett's company holds makes some people think investing in Berkshire Hathaway Inc. is a bit like buying shares of a mutual fund that emphasizes insurance.

But some analysts say that's not the right way to think of the Omaha-based company because it owns more than 60 different companies outright in addition to its $61.5 billion (euro45.3 billion) investment portfolios.

"I really think it is a living business organization that is out selling product every day,'' Morningstar analyst Justin Fuller said.

Buffett himself contributed to the notion that Berkshire's diversity gives it strength when he pointed out in the company owners' manual that most of his and vice chairman Charlie Munger's net worth is Berkshire stock. A version of the manual has been part of the company's annual reports for more than a decade.

"Charlie and I feel totally comfortable with this eggs-in-one-basket situation because Berkshire itself owns a wide variety of truly extraordinary businesses,'' Buffett wrote. "Indeed, we believe that Berkshire is close to being unique in the quality and diversity of the businesses in which it owns either a controlling interest or a minority interest of significance.''

Buffett declined an interview request for this story, but he and Munger will field questions for roughly six hours at the annual shareholder meeting Saturday. Between 25,000 and 28,000 people are expected to attend based on requests for credentials.

At the meeting that Buffett likes to call "Woodstock for Capitalists,'' Berkshire's various holdings will be scrutinized and celebrated by his fans.

A few of Berkshire's building material companies � Acme Brick, Benjamin Moore paints and Johns Manville � will show off their wares alongside RV company Forest River and manufactured-home builder Clayton Homes.

The Pampered Chef will offer housewares, Fruit of the Loom will be selling underwear and clothing, and dessert will be available from Dairy Queen.

Berkshire's investment portfolio will be represented by Coca-Cola Co. Berkshire holds 200 million shares � or 8.64 percent � of the soft drink giant.

But the retail and manufacturing companies and investments accounted only for a little more than half of Berkshire's earnings before taxes last year.

Insurance companies such as Geico drive the company's profits.

Berkshire's insurance division generated nearly 49 percent of the company's earnings before taxes last year, and, perhaps more importantly, the insurance companies generates billions of dollars that Berkshire can borrow to invest.

"Insurance is the most important part'' of Berkshire, said Andy Kilpatrick, whose 1,848-page book on Buffett fills two volumes in the 2007 edition.

Besides insurance companies that sell directly to consumers, Berkshire owns several reinsurance companies, such as General Re, that mainly sell insurance to other insurance companies.

The "float'' Berkshire's insurance division generates grew to $57.9 billion (euro42.6 billion) with the agreement Berkshire reached last fall to take on the liabilities of Equitas Holdings Ltd., the reinsurer set up by Lloyd's of London.

Unlike a mutual fund, management fees aren't much of a concern at Berkshire because both Buffett and Munger have earned $100,000 (euro74,000) salaries for many years, Kilpatrick said.

"You can't find a cheaper fund manager,'' said Kilpatrick, whose book is called "Of Permanent Value: The Story of Warren Buffett.''

Berkshire's track record is also better than many mutual funds.

Since 1965, the annual growth in Berkshire's book value � assets minus liabilities � has consistently beaten growth in the S&P 500. Over that time, Berkshire has grown at a compounded annual rate of 21.4 percent compared with the S&P's compounded annual gain of 10.4 percent.

Last year, Berkshire reported making $11.02 billion (euro8.11 billion), or $7,144 (euro5,258) per share, a 29.2 percent improvement over 2005 because few hurricanes or other disasters challenged its insurance companies.

Regardless of how much Berkshire is like a mutual fund, the required minimum investment is significant, with Class A Berkshire shares selling Wednesday, May 2, for $108,600 and Class B shares selling for more than $3,600.

Shareholders will learn about the company's first-quarter performance today, May 4, when Berkshire releases an earnings report less than a day before the annual meeting begins.

Buffett, Whitman, Grantham & Others Weigh In
Published October 26, 2009 Gurus Leave a Comment
Tags: Bill Gross, Bob Rodriguez, Jeremy Grantham, Jim Rogers, Marty Whitman, Warren Buffett

Kiplinger’s recently asked six top strategists to give their take on investing and where the markets are headed from here. A sampling of the responses:

Warren Buffett: While he says he has no idea where stocks will head in the short term, Buffett says that “over a ten-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we’ve taken action that sows the seeds of substantial inflation down the road. Not in the next six months or year, but ten years from now the dollar will buy a lot less than it buys today.”

Bob Rodriguez: The chief executive officer of First Pacific Advisors says “don’t run with the herd. Being surrounded by people who are doing the same thing as you offers a false sense of protection. He recommends short-maturity, high-quality debt on the bond side, and says that if the U.S. government keeps increasing its balance sheet through huge deficits, “you should probably move at least 20% to 40% of your assets out of the U.S.”


Jeremy Grantham: The GMO chief investment strategist says that if you’ve missed the junk rally, “don’t compound the damage to your portfolio by chasing gains in risky assets. We’re at the beginning of a seven-year period of lean returns.” He recommends buying only the most attractively valued, highest-quality blue-chips.

Marty Whitman: The co-chief investment officer of Third Avenue Management says to “find extremely well-financed companies that do not rely on continuous access to the bond or stock markets for refinancing, that are run by competent management teams and that have favorable prospects for growth.” Buy those issues when they’re trading at a discount. “All other systems of investing are concerned with predicting stocks’ near-term price movements,” he says.

Steep Grades Ahead for Railroads
After signs of stabilization, reality sets in for a difficult recovery.

Warren Buffett targets companies with moats, but these days the easiest moat to identify for Burlington Northern Santa Fe (NYSE: BNI) is that which lies between stabilization and recovery.

Burlington Northern rattled the railroad sector by posting a 30% decline in earnings amid a 27% fall-off in freight revenue. Although the railroads presented a consensus view that business conditions had bottomed out during the second quarter, and marginally improved sequential freight volumes confirm that they have for now, Burlington Northern's revenue decline still outpaced the 26% decline noted last quarter.

I suspect that the substantial barrier separating demand stabilization from sustainable demand recovery is not quite the moat that Berkshire Hathaway (NYSE: BRK-A) investors had in mind. Burlington's freight volumes declined 17% year-over-year, which is in the ballpark with the 15% drop observed by competitor CSX (NYSE: CSX).

These volumes are much improved from the 22% declines reported by CSX and Union Pacific (NYSE: UNP) after the second quarter, but recent glimpses of fourth-quarter expectations from industrial bellwethers such as Peabody Energy (NYSE: BTU) and steelmaker Nucor make it difficult to anticipate continued improvement in volumes hauled. Reflecting the persistent weakness in construction-related demand confirmed by dismal results from USG (NYSE: USG) last week, Burlington Northern watched revenues from industrial products slide by 34% in the third quarter. Revenue from consumer-driven segments such as automobiles and containers, which account for some 31% of Burlington's traffic, dropped by an astounding 36%.

Union Pacific CEO Jim Young extended his cautious outlook into 2010: "I think next year we're going to be hard-pressed to see much of a volume increase." To date, railroads have exhibited a laudable capacity to increase operational efficiency to absorb revenue declines, but without a true recovery in demand, that ability can take the sector only so far.

I would like nothing more than to endorse Warren Buffett's choice in the railroad sector as best in class, but the operator's combined debt and deferred income taxes have climbed to more that $19 billion. That's some heavy cargo! While the company's operating ratio of 74.2% is respectable, it nonetheless stands some 1,150 basis points above that reported by my preferred operator: Canadian National Railway (NYSE: CNI).

My readers know that I have taken a cautious view of the North American railroad sector for several quarters because of deep-seeded fundamental challenges to sustainable recovery within the domestic industrial base. It's time for you to make your opinions known through our Motley Fool poll.