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A legend, a cult
Berkshire Hathaway is the investment vehicle of the man often considered to be the world's greatest investor - Warren Buffett. In 1956, entrepreneurial prodigy Warren Buffett, armed with only an MBA and $105,000 in assets, founded Buffett Partnership Ltd. A few wise investments early on allowed Buffett to purchase, at bargain prices, companies such as insurance giant National Indemnity, and textile manufacturer Berkshire Hathaway, from which the current corporation takes its name. That name, and Buffett's, have since become legendary - the firm has posted an average annual increase of more than 30 percent since 1965. Buffett himself is worth close to $35 billion.
Slow and steady does it
Unassuming Buffett is known as a nice, normal guy who happens to be an incredible investor. The investment strategy that drives his company is similarly blase. Berkshire Hathaway makes its money by concentrating on undervalued stocks, when what Buffett calls a company's "intrinsic value" exceeds its market value. How does one determine a company's intrinsic value? By performing careful quantitative analysis of balance sheets and other boring accounting statements, and by paying attention to the talent and drive of a company's management team. Buffett is patient, not one to jump at a hot Internet stock. Instead, his firm has major holdings in blue-chip performers like Gillette, USAir, American Express, and Coca-Cola (Berkshire owns about $10 billion in Coke stock).
Along with owning large stakes in major companies, Berkshire also simply owns some companies outright. The company purchased See's Candies in 1972, GEICO insurance in 1981, and H.H. Brown Shoe Company (North America's leading shoemaker) in 1991, and Dairy Queen in 1997.
Insurance - not sexy, but profitable
Perhaps befitting of a firm that makes its living playing it safe by the numbers, insurance plays a large role in Berkshire's investments; along with ownership of National Indemnity and GEICO, Berkshire has major holdings in Central States Indemnity and Kansas Bankers Surety. In 1998, Berkshire Hathaway acquired the largest U.S. reinsurance company, General Re Corporation, for $21.7 billion. (Reinsurance companies do exactly what it sounds like they do - they sell insurance to insurance companies.)
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Finding a job with Berkshire Hathaway itself is nearly impossible; the headquarters has very few employees (the firm's web site offers no employment information). Positions with those BH companies still hiring are easier to come by. Those interested in working for GEICO may call (301) 986-3092 for job openings around the country or look up information on the company's employment Web page, located at www.geico.com/screens/maconhr.htm. Candidates for Dexter Shoes may send resumes via regular mail to 114 Railroad Avenue, Dexter, ME 04930, or fax them to (207) 924-7341. Applicants to See's Candies may send resumes via regular mail to HR Manager, 3423 South La Cienega Blvd., Los Angeles, CA 90016, or fax them to (310) 842-4437. See's also offers a job hotline at (310) 387-4649 that lists some available positions. World Book is currently in the process of a major downsizing effort and is not conducting any significant new hiring.
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Berkshire Hathaway's aggressive acquisitions may lead to large profits, but the employees of its subsidiaries are routinely subjected to major downsizing plans in the quest for ever-larger profits. Employees of World Book, for example, report that the staff there has been decreased by more than 80 percent in a recent one and a half month period. As a result, employee morale at many BH companies has "plummeted." Those who do stay receive "acceptable salaries" but "paltry benefits," according to one See's Candies employee. In addition, some World Bank female employees allege that they have been denied promotions on the basis of their gender.
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