Berkshire Hathaway

Definition

Berkshire Hathaway is an American multinational conglomerate holding company headed by Warren Buffett that oversees and manages various subsidiary companies.

Analogy

Consider Berkshire Hathaway as your school's principal while its subsidiaries are students. The principal doesn't interfere with each student's daily activities but ensures they're following rules and performing well overall.

Related terms

Warren Buffett: Known as the "Oracle of Omaha," Buffett is one of the most successful investors in history.

Conglomerate: A corporation that is made up of a number of different, seemingly unrelated businesses.

Subsidiary Company: A company whose controlling interest is owned by another business entity known as parent company or holding company.