Berkshire Hathaway Inc. (BRK.A) Has a Lot of Exposure to US Economy

Warren Buffett‘s Berkshire Hathaway Inc. (NYSE:BRK.A) is one of the greatest holding companies, gathering many successful businesses under its umbrella, such as insurance, textile, building products companies and others. Aside from that, Berkshire owns stakes in many large companies, the value of its equity portfolio topping $105.7 billion mark. In a recent intervention on Bloomberg TV, Noah Buhayar reported about Berkshire Hathaway and its correlation with the total U.S. economy.

Berkshire Hathaway

“The number of companies that fall under the Berkshire umbrella is quite vast these days. There are dozens of them, 70-80, in that ballpark. And many of them are very much tight to the U.S. economy. You think about railroad BNSF, if people are buying more stuff the railroads probably are going to be shipping that. You’ve got a lot of housing-related businesses. There is a brick company, there is a carpet company, there is a paint company, you have a residential real estate brokerage company,” Buhayar said.

In this way, this shows, that the companies that are part of the Berkshire Hathaway Inc. (NYSE:BRK.A)’s holdings, are engaged in the segments that depend of the overall state of the economy, that are correlated with the overall spending of households and other businesses. Berkshire is expected to report its financial results for the second quarter of 2014, later today, probably after the market closes. Buhayar said that investors of Berkshire Hathaway Inc. (NYSE:BRK.A) also agree on the fact that the company has a lot of leverage to the U.S. economy, and they don’t focus on the company’s performance in a particular quarter, but rather have some long-term expectations.

Therefore, Buhayar said that Berkshire should be doing fine, taking into account the overall improvement of the U.S. economy. In addition, Berkshire Hathaway Inc. (NYSE:BRK.A) continues to acquire more businesses to its portfolio of assets, which continues to impact its earnings figures.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!