There's a Valuable Lesson to Learn From Berkshire Hathaway's $26.8 Billion Tax Bill
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is a huge conglomerate with a market value of more than $1 trillion. To suggest that it is a very successful company would be an understatement. So, perhaps, it isn't shocking to hear the company's chief executive officer, Warren Buffett, explain that Berkshire Hathaway had a staggering $26.8 billion tax bill in 2024. However, if you read what Buffett said, there's also a powerful lesson for investors.The funny thing about Berkshire Hathaway is that Warren Buffett's investment in the company probably was one of his biggest investment mistakes. When Buffett bought the company it was a domestic clothing maker that looked cheaply priced. The only problem was that clothing was increasingly being made overseas and imported to the U.S. market at lower prices than it cost to produce those goods domestically.Berkshire Hathaway simply couldn't compete and its clothing operations eventually closed down. What Berkshire Hathaway became was a vessel that Buffett used to build a giant conglomerate that now has its fingers in everything from insurance to chemicals to utilities, and a huge amount in between. He got lemons and made some very tasty lemonade, to the financial benefit of many investors.Continue reading
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is a huge conglomerate with a market value of more than $1 trillion. To suggest that it is a very successful company would be an understatement. So, perhaps, it isn't shocking to hear the company's chief executive officer, Warren Buffett, explain that Berkshire Hathaway had a staggering $26.8 billion tax bill in 2024. However, if you read what Buffett said, there's also a powerful lesson for investors.
The funny thing about Berkshire Hathaway is that Warren Buffett's investment in the company probably was one of his biggest investment mistakes. When Buffett bought the company it was a domestic clothing maker that looked cheaply priced. The only problem was that clothing was increasingly being made overseas and imported to the U.S. market at lower prices than it cost to produce those goods domestically.
Berkshire Hathaway simply couldn't compete and its clothing operations eventually closed down. What Berkshire Hathaway became was a vessel that Buffett used to build a giant conglomerate that now has its fingers in everything from insurance to chemicals to utilities, and a huge amount in between. He got lemons and made some very tasty lemonade, to the financial benefit of many investors.
