Berkshire Hathaway has its roots in the textile factory established in 1839 by Oliver Chace known as the Valley Falls Company in Valley Falls, Rhode Island. Chace had worked with Samuel Slater, a successful businessman in the textile industry in America. Chace founded his first textile company in 1806. In 1929 the company joined with the Berkshire Cotton Manufacturing Company, established in 1889. The union of the companies known as Berkshire Fine Spinning Associates.
In 1955, Berkshire Fine Spinning Associates merged with Hathaway Manufacturing Company, founded in 1888 by Horatio Hathaway. Hathaway was successful in its first decades, but suffered losses during the fall of the textile industry after the First World War. After binding, Berkshire Hathaway had 15 plants and employed over 12,000 workers with incomes over $ 120 million, seven of these plants closed by the end of the decade.
In 1962, Warren Buffett began buying shares of Berkshire Hathaway, bought enough to change the direction of the company and soon he controlled the company. At first, Buffett kept the core business in textiles, but in 1967 expanded into the insurance industry and other investments. Berkshire was introduced to the insurance industry with the purchase of National Indemnity Company. In 1985 was the last textile operations of the company.
Berkshire Hathaway has grown enormously and is engaged from the sale of jewelry to the manufacture of bricks and CEO is Warren Buffett.