Berkshire Hathaway is known for its diverse portfolio of businesses and investments. With total assets exceeding $1.1 trillion, it is among the ten most valuable companies globally.
The company operates in various sectors, including insurance, manufacturing, retail, railroads, and investments. This diversification helps reduce risk and stabilize earnings. For example, in 2023, its manufacturing business generated the highest revenue at $75.4 billion, while its insurance subsidiary GEICO brought in $39.3 billion, and the Reinsurance Group generated $27 billion. [1]
Due to its presence in multiple industries, Berkshire Hathaway faces competition from many companies. These competitors operate in sectors that overlap with Berkshire Hathaway but with different strategies, focus areas, or technologies. For instance, Vanguard and BlackRock provide alternative investment products that meet varying risk tolerances and financial goals.
Below, I highlight the top Berkshire Hathaway competitors and alternatives to give you a broader understanding of global market trends, investment opportunities, and sector-specific innovations.
Did you know?In August 2024, Berkshire Hathaway reached a record-high cash reserve of $277 billion, accounting for nearly 25% of its total assets—the highest percentage of cash to assets since 2004. Of this amount, $234.6 billion was held in short-term U.S. Treasury bills, surpassing even the holdings of the Federal Reserve. [2]
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16. Lincoln National Corporation
Total Assets: $384.53 billion
Net Profit Margin: 12.2%
Competitive Edge: Strong focus on retirement solutions and financial security
Lincoln National Corporation is a prominent American holding company primarily focused on insurance and investment management services. Its key financial products include life insurance, annuities, retirement plan services, group protection, and employee benefit services.
Unlike Berkshire Hathaway, which follows a more diversified business model, Lincoln National focuses solely on insurance and financial services. It is a leading provider of life insurance and retirement savings plans in the U.S., offering products such as indexed universal life insurance, 401(k), and 403(b) plans.
Over the past decade, Lincoln National has gone through cycles of growth and contraction. The company hit peak revenue of $19.27 billion in 2022, and then saw a 39.28% decline in 2023, dropping to $11.70 billion. However, it is now in recovery, posting a net annual profit of $2.37 billion. [3]
15. State Street Corporation
Total Assets: $297 billion
Net Profit Margin: 8.17%
Competitive Edge: Global dominance as a custodian bank
State Street Corporation is the second-oldest continually operating US bank and the largest custodian bank in the world. As of 2023, it had $3.7 trillion under management and $40 trillion under custody and administration. [4]
State Street’s business model revolves around providing investment servicing, investment management, and investment research to institutional clients, such as asset managers, mutual funds, pension funds, insurance companies, and sovereign wealth funds. It also offers portfolio strategy, macroeconomic research, and trading platforms for foreign exchange and securities lending.
Compared to Berkshire Hathaway, State Street operates in a more specialized, financial-centric space. It is well-known for its index funds and ETFs, including the SPDR S&P 500 ETF, one of the largest and most liquid ETFs in the world.
14. Jefferies Group
Total Assets: $63 billion
Net Profit Margin: 7.14%
Competitive Edge: Independent and not tied to any major commercial banks
Jefferies Group operates in various segments, including investment banking, capital markets, and asset management. The firm stands out for its focus on mid-market companies and its independence, as it is not affiliated with any major commercial bank.
Jefferies has built a strong reputation for handling mergers and acquisitions, especially in the consumer goods, healthcare, and technology sectors. It helps clients raise capital by underwriting debt and equity offerings, making it a key player in the global capital market. It also provides strategic advisory services for restructuring, capital raising, and other financial issues for mid-sized and large corporations.
Jefferies’ research team covers over 1,300 stocks in the US and 3,000 globally. In recent years, the firm has expanded its presence in Europe, especially post-Brexit, as clients seek local expertise in European markets. It has also increased its focus on the ESG sector, helping clients raise capital for sustainability-focused projects. [5]
13. Northern Trust
Total Assets: $15.4 trillion
Net Profit Margin: 10.17%
Competitive Edge: Focuses on high-net-worth clients
Northern Trust provides wealth management, asset servicing, asset management, and banking services for corporations, institutions, and high-net-worth individuals. It is popular for its passive management strategies, which include index funds, ESG-focused investments, and quantitative investment solutions.
With 23,000+ employees and $1.2 trillion in assets under management, Northern Trust is the leader in institutional financial services but still is much smaller in size and market influence compared to Berkshire Hathaway. [6]
The firm has increased its presence in the Asia-Pacific region, responding to rising demand for asset servicing and wealth management solutions in emerging markets. It has also been investing in fintech, particularly in AI and blockchain, to improve its asset servicing and operational efficiency.
12. Aviva
Total Assets: $418.94 billion
Operating Profit Margin: 9%
Competitive Edge: The largest insurance providers in the UK
Aviva is a British multinational insurance company focused on general insurance, life insurance, pensions, and asset management. It has about 19 million customers across its core markets of the United Kingdom, Ireland, and Canada.
The firm is a leader in the UK pension market, offering both individual and corporate pension schemes, as well as annuities. It offers solutions for those saving for retirement and those who are already retired.
Aviva manages over $505 billion in assets and offers a broad range of investment solutions across equities, fixed income, real estate, and alternatives. Aviva Investors also focuses on sustainable investments and ESG integration, providing tailored solutions for retail and institutional clients.
In recent years, the firm has streamlined its international operations by selling businesses in non-core markets like Italy and Asia. This strategy aims to concentrate on its key markets. — UK, Ireland, and Canada. [7]
11. Sun Life Financial
Total Assets: $251.59 billion
Net Profit Margin: 7.46%
Competitive Edge: Strong Presence in Asia
Sun Life Financial offers insurance, wealth management, and asset management services worldwide. Its asset management division oversees more than $1.07 trillion in assets, including fixed income, equities, and alternatives. It primarily caters to institutional clients like pension funds, insurance companies, and sovereign wealth funds.
Sun Life is a dominant player in the group benefits and group retirement services markets, particularly in Canada and the US. In 2023, they created 95,874 personalized financial plans for their clients in Canada using the Sun Life One Plan tool, a significant increase from 45,822 in 2022.
The company also has a strong presence in Asia, with operations in countries like the Philippines, Hong Kong, Vietnam, and Malaysia. In Asia, Sun Life has issued over 2.4 million affordable life insurance policies.
As of 2023, the firm had over 85 million clients, 58,200 employees, and 91,700 advisors. Compared to Berkshire Hathaway, Sun Life is more focused on financial services, while Berkshire’s size and industry diversification make it a much larger and more varied conglomerate. [8]
10. State Farm
Annual Revenue: $104.2 billion (2023)
Employees: 67,000+
Competitive Edge: Mutual company structure
State Farm is the largest provider of property, casualty, and auto insurance in the US. It also offers banking services, including loans and investment products, through State Farm Bank.
However, its core business model revolves around offering comprehensive insurance products through a vast network of exclusive agents. It manages over 94 million policies and accounts, serviced by over 65,000 employees and 19,000+ agent offices. [9]
In 2023, State Farm’s total revenue reached $104.2 billion, up from $89.3 billion in 2022. This includes premium revenue, earned investment income, and realized capital gains. In 2024, State Farm was ranked 39th on the Fortune 500 list of the largest companies.
Unlike Berkshire Hathaway, which is a publicly traded conglomerate owned by its shareholders, State Farm operates as a mutual insurance company, meaning its policyholders are the owners of the company.
9. United Services Automobile Association
Total Assets: $212 billion
Net Profit Margin: 2.8%
Competitive Edge: Exclusive focus on military personnel and their families
USAA is a mutual insurance company that offers insurance, banking, and investment services to US military members, veterans, and their families. It is known for its high ratings in customer satisfaction and claims servicing, often ranked at the top of J.D. Power surveys for both insurance and banking services.
In 2023, USAA paid over $23.9 billion in claims, including more than 350,000 catastrophes-related claims. The company also contributed $46 million to philanthropy and returned $1.9 billion to members through distributions, dividends, and bank rebates and rewards. [10]
Compared to Berkshire Hathaway, USAA operates in a niche market of military families in the US but excels in its core insurance business, focusing on customer satisfaction and retention.
8. MetLife
Founded: 1868Total Assets: $675.74 billion
Net Profit Margin: 3.9%
Competitive Edge: Geographically diversified
MetLife is one of the largest providers of insurance, annuities, and employee benefit programs. It offers a range of products in life insurance, disability insurance, dental insurance, annuities, auto insurance, and retirement planning.
MetLife has established itself in the pension risk transfer market, assisting companies in offloading their pension liabilities. This service has become increasingly in demand as companies move away from defined benefit plans.
MetLife’s clients include individuals, corporations, and government entities across more than 40 countries. In the US alone, MetLife has paid more than $80 billion in group life insurance claims over the past decade. Plus, it leads in pension risk transfers, managing over $4.7 billion in benefit payments each year for more than 866,000 annuitants. [11]
7. Geode Capital Management
AUM: $1.37 trillion
Employees: 200+
Competitive Edge: Quantitative research and data-driven investment approaches
Geode Capital Management offers low-cost, passive investment solutions, primarily through index funds and EFTs. Its core strategy is built on quantitative research and data-driven investment approaches, which enable it to mirror the performance of benchmarks like the S&P 500, Russell 2000, and MSCI Emerging Markets Index, among others.
Geode’s deep partnership with Fidelity Investments allows it to leverage Fidelity’s massive distribution network and brand recognition, giving it a strong market position despite being lesser-known compared to other large asset managers.
Founded in 2001, Geode grew to nearly $720 billion in AUM by 2020. At the start of 2022, it surpassed $1 trillion in AUM, and its current portfolio value stands at $1.37 trillion. Some of its top holdings include Nvidia, Microsoft, Apple, Amazon, Alphabet, Tesla, Eli Lilly, Qualcomm, Walmart, and Oracle. [12]
6. Progressive Corporation
Total Assets: $99.8 billion
Net Profit Margin: 10.1%
Competitive Edge: Usage-based insurance offering
Progressive Corporation is one of the largest providers of car insurance in the US, known for its innovative approaches in the insurance industry, such as usage-based insurance and direct-to-consumer sales.
Its Snapshot program, a usage-based insurance offering, uses telematics data to assess customer driving habits and adjust premiums accordingly. This product appeals to customers looking for pay-as-you-drive options. Plus, it sells insurance directly to consumers through its website and phone agents, allowing for more competitive pricing by cutting out traditional middlemen.
The firm is well known for its aggressive and effective marketing campaigns, particularly featuring its mascot, Flo. Progressive utilizes advanced data analytics for pricing and underwriting, allowing it to offer more competitive rates and assess risks more accurately than many traditional insurers.
Currently, Progressive is the top commercial truck, motorcycle, and specialty RV insurer in the U.S. It has also entered the home insurance market through partnerships with third-party companies. In 2024, Progressive was ranked 62nd on the Fortune 500 list of top American companies. [13]
5. Kohlberg Kravis Roberts
Total Assets: $348.46 billion
Net Profit Margin: 17.9%
Competitive Edge: Diverse investment from private equity to real assets
Kohlberg Kravis Roberts (KKR) is a global investment firm specializing in private equity, real estate, infrastructure, and credit. It is renowned for pioneering the use of leveraged buyouts to acquire companies.
KKR’s core focus is its private equity business, which involves buying and managing companies across various sectors, improving their operations, and eventually selling them at a higher valuation. Recently, the firm has adopted a more aggressive stance on taking its portfolio companies public through IPOs.
For example, KKR invested in AppLovin, a mobile gaming tech company, in 2018. By 2021, AppLovin went public, raising about $2 billion through its IPO. In 2024, KKR sold over 19 million shares of AppLovin’s Class A common stock.
As of 2023, KKR had completed more than 730 private equity deals, with a combined enterprise value of approximately $710 billion. That year, the firm generated $14.32 billion in revenue, compared to $5.63 billion in 2022. KKR’s assets under management (AUM) stood at $553 billion, with $446 billion in fee-paying assets. [14]
4. American International Group
Total Assets: $539.3 billion
Net Profit Margin: 9.8%
Competitive Edge: Dominant presence in commercial property
American International Group (AIG) is one of the largest insurers in the world, known for its expansive portfolio of insurance products, particularly in the property-casualty and life insurance sectors.
The firm generates revenue through premium collection, investment income, and fees from managing retirement assets. It maintains a balanced mix of income from both insurance premiums and investment activities, which helps mitigate risk.
AIG holds a strong position in commercial property and casualty insurance, which provides a competitive edge, particularly in covering complex risks like energy projects and aerospace.
In 2023, AIG generated $46.8 billion in total revenue, with about $33.5 billion coming from North America and $13.2 billion from international markets. During the same year, the company returned $4 billion to shareholders, including $3 billion through stock buybacks and $1 billion in dividends. [15]
3. Allstate
Total Assets: $108.36 billion
Net Profit Margin: 4.8%
Competitive Edge: Brand recognition
Allstate is a key player in the US insurance industry, serving more than 16 million households nationwide. In 2022, it was the second-largest homeowner insurer by direct premiums written, just behind State Farm, and ranked among the top private auto insurers with over $29.61 billion in direct premiums that year.
The brand is one of the most recognized in America, thanks to iconic advertising campaigns like “You’re in Good Hands with Allstate” and the popular “Mayhem” character series. Allstate has also heavily invested in digital tools, including its telematics-based insurance program, Drivewise, which offers personalized discounts based on driving habits.
In 2021, Allstate sold its Life and Annuity businesses to Blackstone for $2.8 billion to focus more on property and casualty insurance. That same year, it acquired National General for $4 billion, expanding its auto and home insurance offerings, especially in the non-standard auto market. [16]
Allstate’s revenue has been steadily increasing for the past 15 years. In 2023, the company generated about $57.09 billion in revenue, with a gross profit of $14.95 billion. [17]
2. Vanguard
AUM: $9.3 trillion
Net Profit Margin: 1.2%
Competitive Edge: Low-cost mutual funds, index funds, and ETFs
Vanguard is the largest provider of mutual funds and the second-largest provider of ETFs in the world. It operates with a low-cost, investor-owned model where the funds and ETFs are owned by the clients who invest in them. This structure enables Vanguard to reinvest profits back into the firm to lower management fees.
The firm has a reputation for prioritizing long-term investment results for clients, focusing on buy-and-hold strategies, and minimizing speculation. It also offers investment advisory services (through Vanguard Personal Advisor Services and Vanguard Digital Advisor), providing personalized solutions for individuals based on their financial goals.
Vanguard offers a total of 423 funds worldwide, with 208 available in the US (including variable annuity portfolios) and 215 in international markets. It has a substantial investor base, exceeding 50 million individuals. [18]
1. BlackRock
Founded: 1988The drive to develop more powerful #AI capabilities will require significant infrastructure investment to support it. BlackRock, with Global Infrastructure Partners (GIP), announced that it will partner with @Microsoft and MGX to form the Global AI Infrastructure Investment… pic.twitter.com/BomqNdNLhL
— BlackRock (@BlackRock) September 18, 2024
AUM: $10.64 trillion
Net Profit Margin: 32.36%
Competitive Edge: Massive scale; Proprietary risk management system
BlackRock is the world’s largest asset management firm, providing investment management, risk management, and advisory services to institutional and retail clients globally. It also manages assets in real estate, infrastructure, private equity, and hedge funds—areas of rapid growth that go beyond traditional stocks and bonds.
A key strength of BlackRock is its proprietary risk management platform, Aladdin. This advanced system provides powerful analytics tools for institutional investors, helping both internal and external clients understand and manage risk more effectively.
BlackRock’s assets are diversified across various strategies: 55% in equity, 26% in fixed income, 9% in multi-asset investments, and 7% in money markets. Over the last five years, the firm has seen net inflows of around $1.8 trillion. Geographically, 66.5% of its net sales come from the Americas, 29.2% from Europe, and 4.2% from the Asia/Pacific region. [19][20]
While both BlackRock and Berkshire Hathaway are financial powerhouses, BlackRock operates primarily as an asset manager, and its fortunes are tied closely to financial market performance. In contrast, Berkshire Hathaway is a diversified conglomerate that leverages its insurance float to invest in various industries, making it less reliant on any one sector.
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- Finance & Insurance, Revenues of Berkshire Hathaway by operating business, Statista
- Rocio Fabbro, Warren Buffett’s Berkshire Hathaway holds more US Treasury bills than the Federal Reserve, Quartz
- Company Highlights, Earnings for Lincoln National Corporation, CompaniesMarketCap
- Business, State Street CEO O’Hanley to take additional role as bank’s president, Reuters
- Corner Office, How Jefferies’ investment research leapfrogged competitors, Institutional Investor
- News, Northern Trust Asset Management strengthens investment stewardship capabilities, Northern Trust
- Newsroom, Aviva announces exit from Italy, Aviva
- Sun Life at a Glance, 2023 Sustainability Report, Sun Life
- Financial Results, State Farm property and casualty insurance companies experienced growth in policies, State Farm
- Annual Report, $1.9 billion returned to members, USAA
- Fact Sheet, MetLife has operations in more than 40 markets globally, MetLife
- Latest Holdings, Geode Capital Management’s portfolio holdings, Fintel
- Fact Sheet, No. 1 commercial auto insurer in America, Progressive
- Annual Report, KREF has remained consistent in its proactive and transparent approach, KKR Real Estate
Finance Trust - Annual Report, About $8B underwriting income increase over seven years, AIG
- Newsroom, Allstate closes acquisition of National General Holdings, Allstate
- Insurance, Total revenue of Allstate since 2006, Statista
- Facts and Figures, 423 funds offered worldwide, Vanguard
- About Us Page, BlackRock generated $1.8 trillion of net inflows over the last five years, BlackRock
- BlackRock Business, Net sales are well distributed geographically, MarketScreener
