On the asset management side of the company, its subsidiaries have equity positions in a number of French companies. To name some, Power Corp. of Canada has: a 7.5% stake in the world’s No. 2 liquor company Pernod Ricard SA (EPA:RI), a 4% stake in the oil giant Total SA (ADR) (NYSE:TOT), a 5.1% stake in GDF Suez SA (EPA:GSZ) (the world’s largest electric utility) and a 7.2% stake in Suez Environnement Company SA (EPA:SEV), (one of the world’s largest water utilities).
The Non-Insurer Berkshire
Leucadia National Corp. (NYSE:LUK) is very different from Berkshire Hathaway Inc. (NYSE:BRK.A), Markel and Power Corp. of Canada. Unlike the above mentioned three, Leucadia’s core business is not insurance. With the acquisition of the remaining shares of Jefferies Group earlier this year, Leucadia National Corp. (NYSE:LUK)’s core business is investment banking. Warren Buffett himself has generally shied away from that segment of banking after an investment bank Berkshire had a stake in got into trouble with the US government in the early ’90s. The non-insurance, investment bank strategy has thus far worked out very well for Leucadia though, as it has been the best performer of the four companies these past 10 years.
Like everyone else, Leucadia has assets outside of its core investment banking business. Together with Berkshire Hathaway Inc. (NYSE:BRK.A), Leucadia National Corp. (NYSE:LUK) owns 50% of Berkadia Commercial Mortgage. They also own a majority stake in National Beef Packing, as well as stakes in various metal mining operations, oil and natural gas drillers, a timber company, a plastics manufacturer, a biopharma company and some real estate holdings. Include a few other investments and holdings here and there and you get the general idea: another Berkshire-like company.
Bottom Line
Although investors are on the lookout for companies with similar business models to replicate Berkshire Hathaway Inc. (NYSE:BRK.A)’s past (and likely future) success, finding those companies is far easier said than done. If it were that simple to run a company and invest like Warren Buffett, we would all be billionaires! Or at the very least multi-millionaires (I’m not greedy). Not as easy as it sounds though. These three companies however, Markel, Power Corp. of Canada and Leucadia, seem to be the most likely candidates for the position of “the next Berkshire” and might be well worth a closer examination.
The article A Look at the Mini-Berkshires originally appeared on Fool.com is written by Matthew Luke.
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