Wesco Financial
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| Type | Private |
|---|---|
| Industry | Insurance,Furniture Rental,Steel |
| Founded | 1959 |
| Headquarters | Pasadena, California |
| Key people | Charles T. Munger, Chairman/CEO |
| Revenue |  $765 million USD (FY 2010) |
| Owner(s) | Berkshire Hathaway |
| Employees | 2291 (14 at KBS, 2100 at CORT, 172 at Precision Steel, 5 at Wesco) (as of 2010) |
| Website | www.wescofinancial.com |
Wesco Financial Corporation is a diversified financial corporation headquartered in Pasadena, California.
Wesco was originally a savings and loan association. It was for a long time 80.1% owned by Blue Chip Stamps, which is wholly owned by Berkshire Hathaway, which is controlled by legendary investor Warren Buffett. Wesco is chaired by Charlie Munger, who is also vice-chairman of Berkshire Hathaway and Buffett's business partner. Munger, formerly a practicing attorney, is known for his straight-shooting style and his conduct at the now discontinued Wesco shareholder meetings in Pasadena, where he used to interact with the outside investors at considerable length.[1] In June 2011 Berkshire Hathaway acquired the 20% of Wesco that it didn't already own.[2]
Wesco Financial is sort of like miniature version of Berkshire Hathaway. Like its parent company, Wesco provides insurance and reinsurance; it does so through subsidiaries Wesco-Financial Insurance Company and Kansas Bankers Surety. It also holds shares in some of the same companies as Berkshire, like Coca-Cola, Kraft Foods, Procter & Gamble, and Wells Fargo. Other prominent holdings include CORT Business Services and Precision Steel Warehouse, which has steel service centers in Chicago and Charlotte, North Carolina.
[edit] Subsidiaries
Wesco does business in three major categories; insurance, furniture rental, and steel service. The following wholly owned subsidiaries handle most of Wesco's business:
- Wesco-Financial Insurance, which was incorporated in 1985 and engages in the property and casualty insurance business.
- Kansas Bankers Surety Company, which was incorporated in 1909, purchased by Wesco in 1996 and provides specialized insurance coverages for banks.
- CORT Business Services Corporation, furniture rental.
- Precision Steel Warehouse, Inc., a chain of steel service centers. Precision Steel was founded in 1940 and acquired by Wesco in 1979.
- MS Property Company, which owns commercial real estate in Pasadena.
