Latest news with #conglomerate
Bloomberg
a day ago
- Business
- Bloomberg
JSW Agrees to Buy Akzo Nobel India Unit in $1.6 Billion Deal
By and Sanjai P R Updated on Save JSW Group agreed to buy up to 75% of Akzo Nobel NV 's Indian business as the Indian conglomerate seeks to expand its presence in areas such as paints. The deal is valued at about €1.4 billion ($1.6 billion) including debt, according to a statement on Friday. The transaction, which is expected to close in the fourth quarter, will generate about €900 million in net cash proceeds for the Amsterdam-based company.
Entrepreneur
2 days ago
- Business
- Entrepreneur
5 Key Lessons from Mukesh Ambani's Leadership Playbook
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. From betting against conventional wisdom to building an institutional ethos grounded in societal value, Mukesh Ambani's leadership journey offers more than corporate lessons. As Asia's business landscape becomes increasingly volatile and tech-driven, the Reliance model may serve as a rare compass. Mukesh Ambani, chairman, Reliance Industries, lays out the guiding philosophies that have shaped Reliance Industries' evolution from a modest textiles operation into one of Asia's most consequential conglomerates. Drawing from decades of experience, Ambani's remarks offer practical insight into risk-taking, innovation, institutional culture, and building for the long term. Here are five powerful takeaways: 1. Vision anchored in impact, not wealth Ambani doesn't mince words about what drives business at Reliance. Profit has never been the North Star; purpose has. Recounting his father Dhirubhai Ambani's founding philosophy, he recalls: "If you want to start a business to be a billionaire, you are an idiot… If you want to start a business to impact a billion people, then you have a good chance of success." This belief, embedded deeply into the company's DNA, has guided Reliance's expansion; from polyester to petroleum, from telecom to green energy, with a consistent eye on societal transformation. "Our vision and purpose of doing business have to be impact-led," Ambani emphasized. That core mission has not changed; only the business strategy has evolved to meet new challenges. 2. Bet big but prepare for the worst Risk, for Ambani, isn't a gamble; it's a calculated obligation. He applies a strict rule before diving into any major venture: "You start off by thinking in terms of what the worst is that could happen, and then you have to survive that." This mindset formed Reliance's boldest leap, investing $25 billion in Jio at a time when few believed India was ready for advanced digital infrastructure. Ambani told his board that even if it failed financially, it would still be "the best philanthropy that we will have ever done in India because we will have digitized India." 3. Reinvent relentlessly Ambani is not interested in building businesses that merely survive market cycles. His commitment is to build institutions. "Reliance is a process. It's an institution that should last," he said, echoing his father's charge. That institutional longevity is fueled by continuous reinvention. "Even today, we reinvent our business every three, four, or five years," he explained. Whether it was moving early into 4G, launching the world's largest start-up refinery in Jamnagar, or now investing in clean energy and deep-tech manufacturing, Ambani remains convinced that static models are a liability in fast-changing environments. Legacy, for him, is not about what's been built but how well it adapts. 4. Culture is the strongest insurance policy For Ambani, Reliance's internal culture is grounded in sincerity, transparency, and shared values. It's how the company mitigates risk and scales complexity. Ambani talks about making eye contact with employees as a litmus test of sincerity: "We should be able to look at each other and say we are not embarrassed." The foundation of Reliance's people philosophy lies in three Cs: character, competence, and culture. Character tops the list. "Competence can be built," he says, "but character is essential." In a system that empowers ordinary people to achieve extraordinary things, culture acts as glue, compass, and engine. 5. Own the future or fall behind Ambani's approach to technology is aggressive and unapologetic. "We have to be owners of technology. We must be innovators," he says, dismissing the old model of relying on foreign licenses. Reliance's 5G rollout, where the company developed most components in-house, reflects this shift. His ambition for the next decade is to turn Reliance into a "deep-tech and advanced manufacturing company" with a unique play in AI: not racing into high-risk areas like GPUs, but focusing on downstream applications that solve real problems. The strategy has helped attract top talent with purpose, not just perks. "If you are clear about your goal, and you know how to use technology, then you will achieve your North Star." Mukesh Ambani was speaking on McKinsey's Leading Asia interview.
Yahoo
3 days ago
- Business
- Yahoo
'Record-Shattering': Warren Buffett's Berkshire Hathaway Has Now Paid $101 Billion in Cumulative Federal Income Tax
When Warren Buffett assumed control of Berkshire Hathaway (BRK.B) (BRK.A) in 1965, the company was a struggling textile manufacturer that had not paid federal income tax for years — a fact Buffett described as 'an embarrassment' for such a venerable firm. Fast forward six decades, and Berkshire Hathaway has become not only a global conglomerate but also America's single largest corporate taxpayer. In his 2024 annual letter, Buffett revealed that the company's cumulative federal income tax payments have now surpassed $101 billion. This staggering sum is more than a financial milestone; it represents a direct infusion into the nation's ability to fund essential services. To put $101 billion in perspective: Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? The 7 Signs Your Stock Is A Buyout Target Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Military Budget: The U.S. Department of Defense's annual budget for 2024 was approximately $850 billion. Berkshire's lifetime tax payments could fund more than 11% of the entire U.S. military for a year, or fund the Marines for two full years. Healthcare and Education: $101 billion could finance the federal government's entire Medicaid program for several months, or fund the Department of Education's discretionary budget for more than an entire year. State Revenue: For comparison, many U.S. states have annual budgets well below $101 billion. Berkshire's tax contributions over the years would eclipse the yearly general fund budgets of states like Pennsylvania, Illinois, or Ohio. Texas, one of the largest economies in the world, has $250 billion in yearly tax revenue. In 2024 alone, Berkshire paid $26.8 billion in federal income taxes, accounting for roughly 5% of all corporate income tax collected in the U.S. — a figure surpassing even the largest technology firms with trillion-dollar market capitalizations. This historic payment demonstrates the outsized role Berkshire plays not just in the corporate world, but in supporting the nation's fiscal health. Buffett called the sum a 'record-shattering payment.' Buffett said of his company's tax bill last year that 'if Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend.' This showcases the staggering sum of money Berkshire paid out to the U.S. government. Buffett has repeatedly urged policymakers to use these funds wisely, advocating for investments that 'take care of the many who, through no fault of their own, get the short straws in life.' He has also warned that maintaining a stable currency and financial system requires 'wisdom and vigilance' from government leaders. Berkshire's tax legacy is rooted in its unique approach: the company has paid only one cash dividend since 1965, instead reinvesting profits to fuel growth and, in turn, generate ever-larger tax payments. This model, endorsed by shareholders for decades, has allowed Berkshire to transform from a tax-avoiding relic into a pillar of America's fiscal foundation. As debates continue over corporate taxation and government spending, Berkshire Hathaway's $101 billion contribution stands as a powerful example of how sustained business success can translate into tangible benefits for society at large. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
4 days ago
- Business
- Yahoo
Berkshire Hathaway Has Declined Over 10% Since Warren Buffett Announced His Retirement. Is the Stock a Buy?
Berkshire Hathaway (BRK.B) (BRK.A), the storied conglomerate synonymous with investment legend Warren Buffett, has seen its stock price tumble more than 10% since Buffett announced his retirement as CEO at the company's annual shareholder meeting in early May 2025. The decline marks a significant shift for the company, which has long enjoyed a 'Buffett premium' — a valuation boost attributed to investor confidence in Buffett's stewardship. On May 3, 2025, Warren Buffett, age 94, stunned shareholders by revealing he would step down as CEO at the end of the year, ending a 60-year tenure that transformed Berkshire Hathaway from a struggling textile firm into a trillion-dollar conglomerate. Greg Abel, Berkshire's vice chairman, was named as his successor, a move that had been anticipated but still sent shockwaves through the investment community. Meta's Mark Zuckerberg Says the Technology They're Developing Will 'See What You See and Hear What You Hear' The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. 'Record-Shattering': Warren Buffett's Berkshire Hathaway Has Now Paid $101 Billion in Cumulative Federal Income Tax Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The immediate aftermath saw Berkshire's Class A shares fall from a record $809,350 to $769,960, while Class B shares dropped from $539.80 to $512.94 — a roughly 5% dip in both classes in the days following the news. However, the selloff continued over the subsequent weeks, with both classes of shares now down more than 10% from their pre-announcement highs. Analysts attribute the decline in part to the evaporation of the so-called 'Buffett premium.' For decades, investors were willing to pay extra for Berkshire stock, betting on Buffett's legendary investment acumen and steady hand. With his retirement, some of that confidence has eroded, and the company's shares are now trading more in line with their intrinsic value, rather than the mystique of Buffett's leadership. The timing of Buffett's retirement announcement coincided with a period of underperformance for Berkshire. While the S&P 500 Index ($SPX) has risen about 5% since March, Berkshire's Class B shares have fallen from a 52-week high of $542.07 to around $484, a decline of over 10% during the period. The leadership transition is not the only factor weighing on Berkshire's stock. The company reported a 14% year-on-year drop in operating profit to $9.64 billion in the first quarter of 2025, and net profit plunged 64% to $4.6 billion. Losses related to California wildfires and weaker performance in some of its key businesses have further dampened investor sentiment. While Buffett will remain as chairman through the end of the year and continue to mentor Greg Abel, some analysts warn that the stock could fall further if investor confidence continues to wane. Still, others see the pullback as a potential buying opportunity, given Berkshire's strong balance sheet and diversified portfolio. The company holds over $300 billion in cash and short-term investments, positioning it to weather market volatility and seize new opportunities. Warren Buffett's advice and acumen have never been limited to just his ability to pick stocks. Probably more importantly, Buffett's wisdom extends to his ability to pick and mentor people as well. It's highly unlikely that Buffett would have left his life's work to Abel if he didn't feel as if he could do just as well, if not better, than Buffett himself. This means the worries about lackluster performance are likely overblown, and investors shouldn't be too concerned about the change of leadership. Warren Buffett's retirement marks the end of an era for Berkshire Hathaway. The company's 10% stock decline since his announcement reflects both the loss of a legendary leader and broader concerns about future performance. As Greg Abel prepares to take the helm, investors and analysts alike will be watching closely to see whether Berkshire can maintain its storied legacy in the post-Buffett era. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Berkshire Hathaway Is the Largest Financial Company by Market Cap. But Is It a Buy?
Berkshire has a market cap of more than $1 trillion. The company is sitting on a massive war chest of $348 billion. Berkshire is well-diversified and in a strong financial position as it transitions away from Buffett's leadership. 10 stocks we like better than Berkshire Hathaway › Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is the largest financial company by market cap at more than $1 trillion, according to research from The Motley Fool. Its stock has been massively successful, rising nearly 170% over the past five years. But when longtime Berkshire Hathaway CEO and iconic investor Warren Buffett announced recently that he will step away from leading the company at the end of this year, some investors were left wondering if Berkshire is still worth buying without the Oracle of Omaha at the helm. While change can be scary, here's why Berkshire Hathaway stock is still worth buying. The resilience of many companies is built on how well-diversified they are. This can come from product diversification or by catering to different types of customers, but the important part is for companies to be able to benefit from some parts of their business even while others are slowing down. Berkshire easily fits this description because the company is a conglomerate of more than 60 businesses, ranging from insurance companies (including GEICO) to energy businesses, industrial companies, and consumer goods makers. Of course, the company's huge stock portfolio of more than 30 stocks also adds to the financial diversification with its investments of nearly $279 billion. By spreading its ownership across so many different types of businesses and investing in a diverse field of stocks, investors can be sure that no matter what's happening with the broader economy or specific industries, Berkshire isn't overexposed to risk. There are multiple reasons why having such a large cash hoard is important. First, this cash pile means that if difficult economic times are around the corner, Berkshire will easily be able to weather the storm. It also opens up the opportunity for the company to buy other companies it sees as a good value, or buy stocks that it views as undervalued. What's more, Berkshire has been a longtime purchaser of its own stock. A large cash reserve means the company has enough money for continued share buybacks, which boost shareholder value. In short, Berkshire's $348 billion in cash and cash equivalents gives the company massive flexibility. If it needs to buy a distressed company at a discount price, it can. If it wants to boost its buybacks, it can do that as well. And if the market takes a downturn and stocks are on sale, then Berkshire can move quickly to expand its portfolio even further. You might assume that a company with a market cap of $1 trillion and share price gains of 170% over the past half-decade would be expensive. But Berkshire's price-to-earnings ratio is just 13 right now, far cheaper than the S&P 500's average of about 28. This means you can buy Berkshire's shares at a relative discount to the broader market, despite the company's strong financial position and impressive share price gains in the recent past. There's hardly a better deal out there for a company that's massively profitable and well-diversified. I understand the concern some potential Berkshire investors have with Buffett stepping away from the CEO role. But two things are important to note here. The first is that Buffett is stepping away because of his age -- he's 94 -- and not because of a failure in management. That's important to point out, because Buffett and his management have been able to plan for this transition, instead of being forced into a major change due to mismanagement. Second, and just as important, is the fact that because Berkshire is a conglomerate of businesses, little will change in the day-to-day operation of the more than 60 businesses in its portfolio. They all have their own CEOs and management teams and will continue to operate as usual once Buffett steps down at the end of this year. Longtime Berkshire executive Greg Abel will take over the CEO role, and many believe that he'll keep the company's focus on value businesses. With Abel inheriting a large stock portfolio, strong financial position, and well-diversified business, Berkshire is in a fantastic place to weather the transition well. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. Berkshire Hathaway Is the Largest Financial Company by Market Cap. But Is It a Buy? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
