One of the world's most successful investment firms, Berkshire Hathaway is now going through troubled times. A victim of the recession, it posted its worst-ever results ever in 2008. The net income dropped 59 per cent in 2008 to $4.99 billion, or $3,224 a share, from $12.2 billion, or $8,548, a year earlier.
The revenue fell 8.8 per cent to $107.8 billion from $118.2 billion.
Company chairman Warren Buffett has, however, blamed himself for making certain 'dumb' investment decisions last year and also hinted that the head of the firm's reinsurance business -- Ajit Jain -- might be his successor. Berkshire's utility and insurance businesses performed well in 2008 that helped balance out losses in other businesses. Buffett, however, is optimistic that the company can pull through the recession.
Berkshire Hathaway tracks its origin to a textile manufacturing company established by Oliver Chace in 1839. In 1962, Buffett began buying stocks in Berkshire Hathaway.
By 1967, he expanded into the insurance industry. Berkshire Hathaway now deals with insurance, including property and casualty insurance, reinsurance and specialty non-standard insurance.
Image: Warren Buffett fills a glass with Coke during a news conference in Madrid. | Photograph: Andrea Comas/Reuters
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