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Warren Buffett pretty much owns everything. He can get up in the morning and put on his Fruit of the Loom undies, throw on his Justin cowboy boots (and hopefully some other clothes, although the image of Warren Buffett wearing just those two things has now seeped into my brain), have a breakfast prepared with Ginsu Knives and Pampered Chef gadgets, and drive off to work in his car insured by GEICO. He can snack on chocolate and ice cream and lounge in an office chair from Nebraska Furniture Mart. And he can say that he owns all of the companies that produced all of those things.
Berkshire Hathaway is so diversified it’s crazy (crazy-smart… clearly the Oracle of Omaha isn’t hurting for money) – here are 10 companies BH owns.
1. Dairy Queen and Orange Julius. This one is my favorite. For $585 million in 1997, Berkshire Hathaway bought itself a lifetime supply of Blizzards and Mr. Mistys. I think that’s totally worth it. Because Orange Julius is licensed by Dairy Queen, that lifetime supply could also include smoothies.
2. GEICO. I know, who would have thought that the little gecko with the Cockney accent was actually from Chevy Chase, Maryland, with a parent in Omaha, Nebraska? The former mom-and-pop insurance company fell under Berkshire’s ownership in 1996, but they had already become a big company in their own right, although I think they’ve definitely ramped up the advertising since 1996.
3. Fruit of the Loom’s 1999 bankruptcy was Berkshire Hathaway’s gain. For the bargain basement price of $835 million, Buffett took control of the Grapes. And the Apple. The Leaf refused to come.
4. Pampered Chef, if you’re not familiar, is like Tupperware or Avon in the sense that it’s sold by a direct sales force via in-home parties. Berkshire Hathaway bought the company in 2002 and recently expanded to Mexico.
5. Nebraska Furniture Mart is perhaps not well known outside of the midwest, but it’s the largest home furnishing store in North America. Buffett bought the company in a handshake deal from the matriarch who worked in the store until she was 103 years old. I’m currently sitting on a couch that I bought from Mr. Buffett. It’s quite comfortable. As an aside, Berkshire also owns MidAmerican Energy, so between NFM and MidAmerican, at least two of our monthly bills go to the billionaire. Thanks, Warren!!
6. Justin Brands. Back in the day, Justin Boots was a mail-order, made-to-fit cowboy boot business. By the time Berkshire Hathaway bought it in 2000, it was a $600 million company. At least, that’s what the transaction was worth.
7. See’s Candies. Homemakers, which is a Nebraska Furniture Mart company, used to have a little See’s Candies booth in the lobby and I always wondered why. I guess now I know. And apparently I should have known – See’s was one of Buffett’s original investments for Berkshire Hathaway in 1972.
8. 9. and 10. Ginsu Knives – yep, Berkshire slices, it dices, it can even cut through tin cans! They bought the Scott Fetzer company in 1986 for somewhere around $320 million. That purchase also included Kirby Vacuums and World Book Encyclopedias.
So if you were Warren Buffett, what company would be on your list? I like to think in terms of personal gain, so I think I would purchase a local coffee chain here called Friedrich’s so I could have free caffeine whenever I wanted.
Have a Q10 request? I’m on Twitter and I’m all ears! Err… all keys. Something.
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Comments (25)
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I would want a national chain of steakhouses, like a Morton’s or Flemings… that way I could dine in top steakhouses no matter where I was in the country.
posted by taylor on 8-21-2009 at 4:01 pm
I would like to own Newbury Comics…music, random stuff, books, and of course, comic books…whenever I want!
posted by Megan on 8-21-2009 at 4:12 pm
I would buy North Carolina.
posted by Hyacinth on 8-21-2009 at 4:16 pm
I like Megan’s style! but i can’t pick the same thing.
I would buy the Mens Warehouse. I looove business suits, but never have any reason to wear them, let alone afford them. If I was him, I could wear them everyday and get custom fitted in my own suits for free!
posted by Steven on 8-21-2009 at 4:22 pm
Hyacinth has the right idea.
I dont think the rest of you quite grasp what it means to be a billionaire…
Being a billionaire means you dont eat at Morton’s, you eat gently seared Kobe Beef from the outdoor deck of your private yacht.
You dont shop at Men’s Warehouse, you have custom wool and silk suits made for you by the finest tailors in Italy.
You dont buy Newbury Comics, you hire the band to come play live in your living room while Marvel artists render your likeness on the cover of your own exclusive comic.
Id buy a western ski resort, an adventure travel company, and the Yankees.
posted by Andrew on 8-21-2009 at 4:45 pm
I’d buy Wizards of the Coast and the Tribute Golf Course because, well, I love golf and DnD.
posted by TXCherokee on 8-21-2009 at 4:54 pm
I would buy Mental Floss and make an entire issue dedicated to facts about me, it would be selfindulgent and insightful.
posted by David on 8-21-2009 at 5:21 pm
You don’t understand Buffett nor Omaha when it comes to steak houses. Omaha use to have many independent steak houses, still has a few including Warren’s favorite called Gorats. So I do not think a steah house chain would be in his plan. But if I was him a pro ball team, a football team would be my first choice.
posted by James on 8-21-2009 at 5:46 pm
I’d buy a big diamond ring … wait, Warren already owns Ben Bridge Jewlers and Helzberg Diamonds.
I know I’d get a personal jet like Tiger Woods … wait, Warren owns NetJets.
I got it. I’ll buy my own railroad … wait a sec, Warren owns 20% of Burlington Northern Santa Fe and a good chunk of Union Pacific.
Oh heck, maybe I’ll just grab a Coke … wait, Warren also owns a big part of Coca Cola … and American Express … and Wells Fargo.
I give up!
posted by Lowell on 8-21-2009 at 6:02 pm
no doubt in my mind, i would play a real life game of sim city
posted by john on 8-21-2009 at 7:11 pm
Oh, See’s Candies…..smart move, Mr. Buffet, smart move.
posted by Lynley on 8-21-2009 at 7:39 pm
i’d buy sony, virgin and the internet
posted by Sue on 8-21-2009 at 7:48 pm
David should totally marry me, haha!
I would buy a ridiculously large peice of property near Staircase, Olympic National Park, Washinton, and put a log cabin on it on a hill, with a plexiglass area in the floor with one of the smaller rivlets running under it, with the large rocks and logs that make waterfalls. It would be two stories, and have a river rock fireplace covering an entire wall to heat the whole house, and have a winery *grapes grow wild here* run by the river going through the basement. I would also buy a toilet-paper company. Yes, I would. Doesn’t seem very lucrative, but people NEED toilet paper, even if they don’t buy thier usual ‘wants’. I would fund my awesome house by renting out tiny cabins and campsites throughout my acreage of park, for the yuppie super-hikers we have.
posted by HellHathNoFury on 8-21-2009 at 7:50 pm
I would own every fabric store, every photography store, every computer store, and every egging store in the world….then I could satisfy my every desire…well almost, to get them all I would need to own all the Craft Stores in the world too!!
Not self centred much eh?
Throw in Cabellas for my husband and the world would be perfect!
posted by Sandie on 8-21-2009 at 9:04 pm
Interesting ideas. Warren still lives in the 1st house he bought. Maybe that’s why we’re not billionaires we’re trying to buy everything, and he just sits on his money.
posted by Solo! on 8-21-2009 at 10:37 pm
Hyacinth, you are on the right track, but think bigger.
I would buy Norway.
posted by Tex on 8-22-2009 at 12:11 am
I’d buy ummmm
Microsoft
haha
seriously- I came here to say that this was one of the best-written mental floss posts I’ve read in quite awhile. I just found it entertaining…
posted by ann on 8-22-2009 at 5:47 am
Solo!, you are correct. Mr. Buffet has said many times that the best path to wealth is smart investing and slow and steady saving.
I would build my own chain of very nice restaurants, thing Eddie Merlot’s. I would also build a golf course thoughout a vineyard and wine making compound.
posted by Justin on 8-22-2009 at 2:11 pm
Just remembered, I sort of work for Berkshire Hathaway. I am employed by US Bank and Berkshire is the single largest shareholder.
posted by Justin on 8-22-2009 at 2:13 pm
Not a doubt in my mind, not a second’s delay – Victoria’s Secret.
posted by WillieO on 8-22-2009 at 4:25 pm
I love Nebraska Furniture Mart! It’s really mind-blowing. The one in Omaha is anyway.
I went to the Berkshire-Hathaway shareholders meeting (don’t get too impressed–shareholders can bring guests, of which I was one) and they have an expo area with products from a bunch of the companies he owns. Dove chocolate bars, Dilly bars from DQ, See’s candies with Warren’s picture on them…I also got my picture with the men in fruit costumes for Fruit of the Loom. It was an interesting experience.
One place Warren does not give much money is to the University of Nebraska, his alma mater. That probably annoys them a bit. He did bring Bill Gates and give a free speech to students a few years ago though.
And Solo, it’s true that his first house isn’t quite what you’d expect one of the world’s richest men to live in, but it is quite a nice house. He’s not living in a 1960s ranch style in the suburbs or anything. :)
posted by kate on 8-23-2009 at 2:08 pm
I’d buy Gibson USA and my first offical act would be to get rid of that ugly coffin shaped guitar. Second, I’d get an L-5.
posted by KBarr on 8-25-2009 at 4:25 pm
I would create outreach programs for for children in Memphis to increase our high school graduation rate (currently only 7 in 10), initiate an academy to educate low income parent(s) go from poverty to prosperity, develop a microlending bank w/low to no interest loans for new small businesses, commission my pastor to write a book on the spiritual/biochemical connection (he’s also a pharmacist), I’d pay every debt my family & relatives have as well as sponsor dream businesses or send them to school/intern in their field of choice. I’d buy the company I work for & implement solutions to all the unnecessary dilemmas I encounter. Then I would take a nap.
posted by Jodie on 8-27-2009 at 12:44 pm
I’d buy the presidency.
posted by Tyson on 9-10-2009 at 1:09 am
I can’t believe that Berkshire Hathaway owns Ginsu Knifes. No wonder they make so much money! Those things are horrible. Sure they stay sharp for a week, maybe a month if you’re lucky but that’s about it. I called the company to see if they would either sharpen my knife set or tell me where to find someone who could. They had no idea what I was talking about. Also, one of the knives broke a week after I got it and they just told me to buy a knew one. I will never buy Ginsu again. At least this rant has a happy ending. A friend of mine sells a knife made by a comp. called Cutco. It’s been about six months of hard use and they are still sharp. I just found out that Cutco also makes cookware. I am so excited!
/rant.
posted by purple_phoenix on 9-27-2009 at 2:04 am