Another important aspect of Berkshire Hathaway’s strategy is its focus on operational excellence. The company’s subsidiaries are run by talented managers who are given a high degree of autonomy to operate their businesses as they see fit. However, Berkshire Hathaway also provides its subsidiaries with access to the resources and expertise of the parent company, which can help them to improve their performance.

Berkshire Hathaway’s diversified portfolio of subsidiaries also allows it to weather economic downturns. While some of its subsidiaries may be affected by a recession, others may be performing well, which can help to offset any losses. This has allowed the company to maintain consistent growth and profitability over the years.