Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) is a shockingly diversified industrial conglomerate.
However, it is classified as a finance company due to its large insurance operations
This is an important nuance to consider as you examine the nearly $400 billion in cash on the company’s balance sheet. It is an important safety valve and provides firepower for investments when the time is right. But cash isn’t what this business is built on; the float is.
What does Berkshire Hathaway do? From a big picture perspective, Berkshire Hathaway does a lot of things. However, former CEO Warren Buffett was really an allocator of capital, treating the company as his personal investment vehicle.