Introduction Warren E. Buffett‚ the chairperson of Berkshire Hathaway (BH)‚ is the world’s greatest investor of the current era. From 1965 to 2007‚ BH has compounded annual gain of 20.3% while S&P has 9.3% (Berkshire Hathaway Inc.‚ 2009). Most investors get normal returns and believe the market is in semi strong form. However Buffett believes the market is inefficient and acts on his own investment philosophy. This report will analysis BH’s acquisition of PacifiCorp‚ evaluate Buffett’s performance
Premium Berkshire Hathaway
ISSUES Warren Buffet invoked the substance-over-form concept to justify accounting for the GEICO and General Foods transactions as dividends distributions rather than sales of stock. Do you agree with Buffet that the substance of each of the proportionate redemptions was a dividend and not a sale of stock? In deciding how to account for an unusual or unique transaction for financial reporting purposes‚ should one consider the tax treatment applied to the transaction? Did Peat Marwick have a right
Premium Financial statements Audit Warren Buffett
Berkshire Hathaway is an American multinational conglomerate holding company that oversees and manages various subsidiary companies (Berkshire Hathaway‚ 2011). The current members of the Board of Directors are Warren Buffett‚ Charlie Munger‚ Walter Scott Jr.‚ Thomas Murphy‚ Howard Graham Buffett‚ Ronald Olson‚ Donald Keough‚ Charlotte Guyman‚ David Gottesman‚ Bill Gates‚ Stephen Burke‚ and Susan Decker (Berkshire Hathaway Inc.‚ 2011). The primary job of the Board of Directors is to see that the
Premium Berkshire Hathaway Balance sheet Asset
Berkshire Hathaway From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search Berkshire Hathaway Inc. Type Public (NYSE: BRKA‚ NYSE: BRKB) Founded 1839 (as Valley Falls Company) Founder Warren Buffett Headquarters Omaha‚ Nebraska Area served USA Key people Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and casualty insurance‚ Diversified investments Products Conglomerate focused on insurance Market cap US$ 196
Premium Berkshire Hathaway
Individual Assignment BERKSHIRE HATHAWAY Assignment Report Submitted by: Sudipt Tewari G13051 ~ Submitted to Prof. A. Kanagaraj In partial completion of Investments course Date of submission –April 20th‚ 2014 Case Summary: Berkshire Hathaway‚ Inc.’s chairman and CEO Warren Buffett‚ is the world’s third richest man. He invested in Berkshire Hathaway in 1962‚ and by 1963‚ Buffett was Berkshire’s largest shareholder. Buffett started purchasing other businesses
Premium Berkshire Hathaway Warren Buffett Investment
Angela Lindsey SHR 247 Blackboard Assignment 2 Berkshire Hathaway Inc. is an American multinational conglomerate holding company‚ headquartered in Omaha‚ Nebraska‚ that oversees and manages a number of subsidiary companies. The company wholly owns Geico‚ BNSF‚ Lubrizol‚ Dairy Queen‚ Fruit of the Loom‚ Helzberg Diamonds‚ FlightSafety International‚ and Netjets. It also owns half of Heinz and has significant minority holdings in American Express‚ Coca-Cola Company‚ Wells Fargo‚ IBM‚ and Restaurant
Premium Warren Buffett Berkshire Hathaway Investment
Berkshire Hathaway Inc. – Executive Summary This team has been assigned to perform an executive summary of Berkshire Hathaway Inc. (BHI). This company has been profitable for the last three fiscal years‚ and is on the U.S. Stock Exchange. This summary will contain information gathered from BHI’s most recent annual report. Using the company’s balance sheet‚ cash flow statement‚ and income statement (all three are attached following the references) 14 key areas will be addressed: 1. Company
Premium Generally Accepted Accounting Principles Balance sheet Asset
In May 2005 Warren Buffets’ Berkshire Hathaway’s subsidiary company MidAmerican Energy Holdings successfully took over the electrical utility company PacifiCorp. The company was purchased for $5.1 billion in cash plus debt assumption of $4.3 billion. The deal is the result of Buffet’s intense search‚ over several years to find an attractive acquisition. This case study evaluates the impact the acquisition has on the share price of both Berkshire Hathaway Ltd and Scottish Power. A valuation is conducted
Premium Berkshire Hathaway Warren Buffett Stock market
to the success of Berkshire Hathaway because Buffet’s five principles were the set of responses and patterns that Berkshire used to obtain their success. Buffet’s investment strategy‚ which consisted of five principles‚ can easily be observed throughout Berkshire Hathaway’s decision-making process. Buffet’s ability to evaluate a business while ignoring trends‚ making niche investments‚ and requiring key managers to be substantial stakeholders is the criteria that Berkshire Hathaway uses in their planning
Premium Management Strategic management Marketing
as the purchase of Burlington Northern Santa Fe Railroad. This was a wise move for Mr. Buffett‚ which took a lot of research‚ and time‚ and knowing when to make an offer for BNSF‚ and what to offer. I feel that with age comes experience‚ and Mr. Buffet saw an opportunity and took it. BNSF was a solid investment‚ with real profit‚ cash flow and a very good future. Mr. Berkshire Hathaway’s business model was to buy large insurance companies that ensured a stabilized cash-float‚ but the purchase
Premium Marketing Petroleum Stock