Stock BRK.B: A 20-Year Journey of Innovation and Growth

A Historical Perspective

Berkshire Hathaway's (NYSE: BRK.B) journey has been marked by milestones and triumphs. Founded in 1965 by Warren Buffett, the company has evolved from a modest textile manufacturer into a global conglomerate spanning various industries.

In 1998, BRK.B began trading on the NYSE at $34.64. Two decades later, in 2022, the stock price has surged to over $300, marking an impressive 900% return over the 20-year period.

Key Acquisitions and Investments

BRK.B's growth has been fueled by a series of strategic acquisitions and investments. Notable milestones include:

• 1987: Acquisition of GEICO, the fifth-largest auto insurer in the U.S.
• 2010: Purchase of BNSF Railway, the largest freight railroad network in North America.
• 2015: Investment in Apple Inc., now the company's largest holding.

Financial Performance

BRK.B has consistently outperformed the broader market, generating exceptional returns for shareholders. According to data from S&P Global Market Intelligence:

• Over the past 10 years, BRK.B has delivered an average annual return of 15.7%, compared to 10.1% for the S&P 500 index.
• Since its inception in 1965, BRK.B has compounded investor wealth at an annual rate of over 20%.

Investment Philosophy

Warren Buffett's investment philosophy has been a key driver of BRK.B's success. His approach emphasizes:

• Value Investing: Investing in companies trading below their intrinsic value.
• Long-Term Horizon: Holding investments for extended periods to capitalize on compound interest.
• Prudent Risk Management: Avoiding excessive leverage and investing in stable businesses with strong cash flows.

Future Outlook

BRK.B's future prospects remain bright, supported by its strong financial foundation and experienced management team. The company continues to invest in innovative businesses and explore new growth opportunities.

Creative Applications for BRK.B

Beyond its traditional investment applications, BRK.B can also be used creatively. One emerging idea is "Insurance Hedging," where investors use BRK.B's strong insurance portfolio to hedge against financial risks.

Tips and Tricks for Investing in BRK.B

• Start Small: Invest within your means and gradually increase your holdings over time.
• Buy and Hold: Embrace Buffett's long-term approach to investing and avoid short-term trading.
• Reinvest Dividends: Use BRK.B's quarterly dividends to purchase additional shares, compounding your returns.
• Monitor the Market: Stay informed about market trends and economic conditions that may impact BRK.B's performance.

Step-by-Step Guide to Investing in BRK.B

1. Open a brokerage account.
2. Conduct research and determine your investment goals.
3. Place a buy order for BRK.B through your brokerage platform.
4. Hold the stock for the long term and monitor its performance regularly.

Table 1: Historical Stock Prices

Table 2: Financial Performance

Table 3: Key Subsidiaries

Table 4: Investment Returns