Did you know Berkshire Hathaway was an Acronym?

Berkshire Hathaway, valued at $618.1 billion, has achieved its success by upholding core values, fostering a strong corporate culture, and prioritizing relationships over mere business transactions. Success stories intertwined with ethical principles truly pave the way forward.

The corporate culture of Berkshire Hathaway is succinctly encapsulated in its name, with each letter representing a fundamental company value.

The 'B' in Berkshire Hathaway symbolizes budget-consciousness, reflecting Warren Buffet's approach of earning his fortune through risk-averse strategies that prioritize cost efficiencies. This focus on stringent cost structures aims not only to enhance the company's bottom line but also to pass on benefits to customers through lower prices, thereby driving sales volume and fostering brand loyalty.

The 'E' in Berkshire Hathaway signifies earnestness, emphasizing sincerity and commitment to promises. This trait is exemplified in the company's subsidiary, NICO, an insurance firm that offers policies worth billions of dollars, showcasing Berkshire Hathaway's robust reputation for goodwill and reliability.

The 'R' in Berkshire Hathaway stands for reputation, underscoring the company's unwavering dedication to maintaining an impeccable public image. By prioritizing a positive reputation, Berkshire Hathaway not only cultivates vital industry relationships but also gains a competitive edge based on goodwill rather than financial superiority.

The 'K' in Berkshire Hathaway represents kinship, highlighting the company's emphasis on nurturing enduring relationships rather than focusing solely on closing deals. This commitment to relationships played a pivotal role in Berkshire Hathaway's successful acquisition of RC Willey Home Furnishings for $25 million less than a rival bid.

The 'S' in Berkshire Hathaway denotes self-starters, illustrating how the company's corporate culture encourages entrepreneurial growth from small beginnings to large-scale success. By fostering a culture that values independent thinking and autonomy among managers, Berkshire Hathaway empowers individuals to drive business innovation and growth.

The 'H' in Berkshire Hathaway stands for 'hands-off,' reflecting the company's decentralized management approach that promotes employee autonomy and creativity. This strategy allows for enhanced ideation and decision-making at all levels of the organization, with a 90/10 rule guiding the distribution of decision-making responsibilities.

The 'I' in Berkshire Hathaway represents 'Investor Savvy,' highlighting the company's adeptness at making profitable acquisitions through a culture that values smart investments and strategic growth.

The 'R' in Berkshire Hathaway stands for 'rudimentary,' emphasizing the company's preference for low-risk investments in established businesses with a proven track record, rather than speculative ventures. This commitment to simplicity and stability underpins Berkshire Hathaway's investment strategy.

The 'E' in Berkshire Hathaway signifies 'Eternality,' reflecting the company's dedication to preserving its core values and corporate culture for generations to come, as outlined in succession plans established by its founder.

Born in 1930, Warren Buffet was a product of the Great Depression. The modest income during his childhood had a profound impact on young Buffet, instilling in him a strong desire for success. At the age of 11, Buffet started earning money by collecting lost golf balls and reselling them to their owners. Saving every penny, he purchased his first stock that year and even managed to make a profit. By the time he was 14, he was delivering newspapers to people's doorsteps, earning enough money to buy his first piece of land for $1200 before his 15th birthday. Little did he know that 25 years later, he would become a significant shareholder in the very newspaper he used to deliver, The Washington Post. Buffet excelled academically as well, graduating at the top of his high school class before attending the Wharton School of Business for college.

Upon graduation, he was taken aback by Harvard's rejection of his post-graduate application despite his exceptional academic record in his undergraduate studies. Fate led him to the University of Columbia, where he crossed paths with Benjamin Graham, who imparted to Buffett the principles of value investing. Value investing involves evaluating a company's intrinsic value in relation to its market value to pinpoint undervalued companies. Investing in undervalued companies is considered a low-risk strategy, as stock prices are expected to eventually rise to reflect the company's performance. At the age of 26, Buffett returned to Omaha and established his own investment firm, Buffet Associates, Ltd., raising $500,000 from family and friends. His first million was invested in Dempster Mill Manufacturing, a struggling company with strong intrinsic value; within two years, the stock price tripled. Through careful investment decisions, Buffett's portfolio had ballooned to $22 million by the remarkable age of 35. Buffett acquired Berkshire Hathaway for $7.60 per share, recognizing the company's undervaluation. Despite its textile industry struggles, Buffett transformed Berkshire Hathaway into a holding company. Under his leadership, the company's stock price surged from $7.60 per share in 1962 to $90 per share in 1976.