Berkshire Hathaway is a diversified company, which is known to many as the investment vehicle of Warren E. Buffet. Warren Buffet is a chairman and chief executive officer of Berkshire Hathaway since 1965. During the 43 years of Buffet’s service, per-share book value of Berkshire Hathaway has increased from $10 to $79,008 and the Standard & Poor’s 500 Index delivered total annual returns of 10.3 percent. The business model adopted by Berkshire Hathaway and the investment decision taken by Warren E. Buffet and Vice Chairman Charles T. Munger are the major contributors to the success of Berkshire Hathaway. Buffet adopted model that involve extreme centralization of capital allocation decisions in the corporate office and extreme decentralization