Berkshire Hathaway As Gauge Of US Economy

Warren Buffet’s Berkshire Hathaway profits soared by 41% in Q2. Berkshire owns more than 80 businesses in sectors including insurance, railroads, energy, chemicals, food and clothing. Analysts have said the company’s increasing diversification over the years have made its fortunes more closely tied to the overall economy, which the Commerce Department said grew at a 4 percent annual rate in the quarter.

Berkshire Hathaway is synonymous with the famous investor and one of the world’s riches persons Warren Buffet. Warsren Buffet is Berkshire Hathaways chairman, president and CEO. He is also the major and primary shareholder of this company. Charlie Munger is the vice chairman of Berkshire Hathaway. Over the years Warren Buffet has used the float provided by Berkshire Hathaway to finance his other investment activities that included buying stocks of other publicly owned companies when the time was right. Charlie Munger has had a important influence in helping Warren Buffet make his investment decisions. Warren Buffet has over the years developed the habit of buying big stakes in a company. When Warren Buffet buys shares of a company, market takes it as a vote of confidence in that company and the share prices start to rise as everyone wants a share in profits. As an investor, it is a good idea for educational purposes to read the website of Berkshire Hathaway regularly.