Hacker News Reader

Comment by KaoruAoiShiho | Hacker News Reader

SoftBank is not a telecom, it's a holding company like Berkshire.

You can buy SoftBank telecom suscriptions and services [1], with its trademark, while e.g. Berkshire don't sell soft-drinks (Berkshire has Coca-Cola stock, but it is not Cola-Cola). So, in my opinion, it is not the same thing. Not even close.

[1] https://en.wikipedia.org/wiki/SoftBank_Group

You can buy Berkshire Hathaway real estate services, with its trademark. Their logo appears on signs outside private homes for sale all over the place.

http://www.berkshirehathawayhs.com/

They also own 100% of a heck of a lot of subsidiaries. They're not just minority owners in a bunch of companies like Coca-Cola.

https://en.wikipedia.org/wiki/List_of_assets_owned_by_Berksh...

Sure, the point is what is their core business. E.g. Sony core business is electronics, despite having financial, entertainment, and other branches. Same thing for SoftBank: yes, it is a holding, but its main business is telecommunications.

Berkshire's core business is insurance.

Specifically the two ends of the market; direct-to-consumer insurance (GEICO) and insuring things no-one else can, particularly reinsurance and muni debt (Berkshire Hathaway Assurance, Gen Re).

If you're good at writing insurance it's essentially a great way of getting interest-free loans which they then spin into a huge pile of low-risk, cash-generating businesses (e.g. Duracell, Fruit of the Loom, See's Candies, to pick three Berkshire brands...).

I think that's more of a branding thing. Telecom is just one of the things SoftBank does and it just happens to be more visible to consumers. Berkshire owns Geico but you wouldn't call Berkshire a insurance company.

Totally would :-)

They're an insurance company which monetizes through operating businesses rather than the traditional model of bancassurance.

Reply on news.ycombinator.com