Sumary of Warren Buffett's Berkshire Hathaway sold Kirby after 35 years. The vacuum-cleaner company generated 5% of Berkshire's profits at one point.:
- Carlos Barria / Reuters Warren Buffett’s Berkshire Hathaway sold Kirby after 35 years of ownership.
- The investor bought Scott Fetzer, the vacuum-cleaner brand’s parent company, in 1986. Kirby once generated 5% of Berkshire’s profits, and Buffett ranked it among his best businesses.
- Warren Buffett’s Berkshire Hathaway recently sold Kirby after 35 years of owning the vacuum-cleaner company.
- The famed investor’s conglomerate rarely sells businesses, and Buffett once prized Kirby as one of Berkshire’s best subsidiaries, making the transaction a notable one.
- Berkshire sold Kirby to Right Lane Industries, an industrial holding company that seeks to acquire US-based manufacturing and industrial-services companies, invest in them, and hold them permanently.
- That strategy chimes with Berkshire’s promise of a “forever home” for the businesses it buys.
- Before its sale to Right Lane, Kirby was a division of Scott Fetzer, a manufacturing conglomerate that Berkshire purchased in 1986. Buffett trumpeted the direct seller of vacuum cleaners as one of Scott Fetzer’s crown jewels in his 1985 letter to Berkshire shareholders.
- “While the Kirby product is more expensive than most cleaners, it performs in a manner that leaves cheaper units far behind (‘in the dust,’ so to speak),” Buffett said.