Diversity of experience
Business Services
With continued outsourcing of non-core functions by corporations over the past several decades, numerous niche business-service industries have been born. Berkshire is attracted to service companies which participate in large, growing markets and whose management teams have created a culture firmly committed to excellence. Often these industries are fragmented, and Berkshire brings the capital and expertise to help management teams grow their companies into industry leaders.
Communications
Berkshire has had significant experience investing in infrastructure assets that are essential to the smooth operation of growing communications networks. The key for us is to be able to work with managements to identify true backbone assets that are required to carry the signals generated by multiple technologies or communication activities, thereby earning a return that is not dependent on the success of a specific business strategy.
Consumer Products
Berkshire looks for consumer product companies that provide a product or service with broad appeal to multiple groups of consumers. It is important that such companies effectively control the key elements that make their products or service successful. Berkshire will look for such important proprietary strengths as product design, quality execution, cost advantage, transferability to adjacent markets, and general overall growth potential.
Energy
Energy continues to play a vital role in our economy and over the years, Berkshire has found a variety of interesting investment opportunities, spanning from nuclear to coal to oil/natural gas and related areas. The companies we seek tend to provide services to the energy sector and display relatively strong resistance to commodity price fluctuations. In addition to energy services companies, we are highly interested in renewables and alternative technologies which may help shape the energy industry in the years to come.
Industrial Manufacturing
Berkshire has historically deep experience in manufacturers that already can see a path toward defensible positions in growing markets. We look for companies that can achieve a low cost position operated by managers who have or are creating a strategy to lead their industry or market niche.
Retailing and Related Services
Berkshire views the retail sector as one that offers superior growth when the right elements are present. These elements include an experienced management team, and an established concept that provides clear perceived value and service to the customer. When these features are combined with short new-store payback periods, growth can be achieved at virtually all stages of an economic cycle. We also like to take advantage of our retail knowledge and more deeply understand related retail services.
Transportation
Berkshire's transportation investments have started with a management team that possesses both a vision and a plan to make that vision a reality. Despite the challenges posed by this capital and labor intensive business (often marked by adversarial relationships among stakeholders), these managers are prepared to put their customers first. The result: enterprises that are energized and transformed into market leaders.