Why isnt berkshire hathaway part of the dow?

Question

i thought they have really done away with the criterion of 'industrial'. Is it because its purely a holding company?

Answer 1

I think because it buys so many other corporations, it is more of a mix in itself.

Such as:

American Express

Geico

etc...

When Berkshire Hathaway first looked at buying American Express, they noticed that they had huge huge debt. But this was misleading. They were selling Traveller's Checks, which are debt to the company. But what is a traveller's check, think about it, someone gives you their money, you give them a piece of paper for it, and they pay you a fee for that piece of paper. That is their debt, but it is balanced by greater cash on  hand. By some standards, American Express has too much debt, and thus will not qualify for some "investment requirements".