Everybody wants to retire comfortably; just ask Steve Sorensen. Net worth is probably the simplest metric one can look at to gauge whether he/she is on the right track for his/her retirement goals, and when it comes to retiring comfortably, many investors have taken cues from the world’s greatest investor – Warren Buffet.
Warren Buffet is not only the second wealthiest person in the world (he has a net worth over $75 billion), but he is also the Chief Executive Officer of diversified holding company Berkshire Hathaway, which is currently ranked at No. 4 in the Fortune 500 list. Berkshire Hathaway boasts over $15 billion in assets. While the insurance and investing conglomerate retained its position from last year, it still managed to post healthy numbers. For instance, it raked in $210,821 million in revenues, up by 8%, and $24,083 million in profits, an impressive 21% profit, which brings conglomerates assets to a total of $552,257 million. Its cash holdings and equivalents first breached the $50 billion mark in 2014.
Some of the biggest companies in the world are wholly owned by Berkshire Hathaway, names like GEICO, BNSF Railway, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, Pampered Chef, NetJets, and Kraft Heinz Company. Berkshire Hathaway also has minority but still significant holdings in American Express, The Coca-Cola Company, Wells Fargo, IBM, Restaurant Brands International, Apple, as well as Mars Incorporated. With a notable investment portfolio, one can only wonder what would happen to the multinational conglomerate once Warren Buffet steps down – the legendary investor is in his late 80s, after all.
What could be next for Berkshire Hathaway? For starters, it’s reported that Warren Buffet is still keen on betting big in the utility business, specifically Berkshire Hathaway Energy (BHE). BHE has its roots in renewable energy, investing more than $6 billion across five solar projects, two of which are the country’s biggest projects yet. Berkshire Hathaway has a 90% controlling stake on BHE. Warren Buffet and Berkshire Hathaway could also be looking at acquiring more technology companies, which could boost the value of its portfolio even more, given the growth trajectory of names like Apple, Alphabet, and Facebook.
Can Berkshire Hathaway strike it big again? Analyses on the growth prospects of Berkshire Hathaway are welcomed by Steve Sorensen. Net worth, revenues, and growth are just a few topics he enjoys discussing on his blog.