Berkshire Hathaway's (NYSE:BRK.B) earnings report on Friday is expected to draw considerable interest from investors as an indicator of how the economy in general is doing, as well as how Warren Buffet's recent acquisitions will affect the company's bottom line.
Buffet's thoughtful leadership has served the company well over the past 50 years. Berkshire began as a textile company that drew the interest of the "Oracle of Omaha" in the 1960s. He soon took the company in a variety of other business fields, including insurance, building products, clothing, flight services, retail, media and financial products. This diversity has served the company well, putting it on the Forbes 2000 most important global companies.
Berkshire Hathaway (NYSE:BRK.A) has maintained its reputation as one of the most profitable and stable companies in the world. With $50 billion in cash holdings and 250,000 employees around the world, this conglomerate has been able to acquire a diverse range of companies that help to balance its short and long-term goals for investors. At 83, Warren Buffet continues to care for his business by announcing a carefully thought out succession plan for the company's future.
Many investors will be interested in seeing how Berkshire's recent acquisition of half the shares of H.J Heinz Company will affect the company's earnings. The June 2013 deal was reported to have cost $23.3 billion, and 3G Capital was enlisted as part of the investment team. The third quarter ending on September 30th will be the first full quarter that Heinz has been on the Berkshire report.
Berkshire's holdings are so diverse that the Heinz acquisition is expected to be only a minor factor in the report that will be released. Berkshire Hathaway also owns a number of large insurance firms including General Reinsurance and Geico. These profitable businesses make a significant amount of Berkshire's earnings on a regular basis. BNSF and other railroads that carry freight around the country also contribute to the company's profits over the long term. Investors will continue to look to Buffet's thoughtful leadership to continue to make profits for this giant of the market.
We continue to be impressed with Berkshire and rate it a buy.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.