How Warren Buffett could make Berkshire Hathaway America's biggest company

How big could Berkshire Hathaway (BRK-A) get? With $210 billion in revenue, which ranks it number four on the Fortune 500, it would seem that Berkshire might have already grown to the sky, right?

Not exactly.

First, it’s interesting that Apple and Berkshire are number three and four. Both have been growing fast but by different means. Apple has been done almost 100% through organic sales growth. Again, a stunning, almost unprecedented rise in revenue. Berkshire, while it has garnered a great deal of internal sales growth has benefited mightily from massive acquisitions.

Both Apple and Exxon seem to be well within reach of Berkshire’s grasp, with “only” $23 billion and $35 billion more in sales respectively than Berkshire.

Could Berkshire ever eclipse Walmart? Maybe, maybe not. One thing in Berkshire’s favor is that it’s growing much faster than Walmart organically. But of course if Berkshire were ever to pass Walmart it would need to do a number of major deals.

And of course that’s exactly what Buffett has been doing recently. So exactly how could Buffett get say $300 billion in revenue? Even buying Exxon $246 billion (not likely), Apple $233 billion (maybe) wouldn’t do the trick. But how about buying some combination of CVS $153 billion, GE $140 billion, Costco $116 billion, or Microsoft $93 billion?

Source: Bloomberg

Trader Bozhidar Arabadzhiev

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