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
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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
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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
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GEICO announced plans to purchase several million shares of its outstanding common stock for $60 per share. Among GEICO’s largest stockholders was Berkshire Hathaway‚ Inc.‚ an investment company. Executives of the two companies decided that Berkshire would tender approximately 350‚000 if its GEICO shares in the stock buyback plan‚ which would allow Berkshire to treat the transaction as a proportionate redemption. In a proportionate redemption‚ the percentage equity interest of on company in a second
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Berkshire Hathaway From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search Berkshire Hathaway Inc. Type Public (NYSE: BRKA‚ NYSE: BRKB) Founded 1839 (as Valley Falls Company) Founder Warren Buffett Headquarters Omaha‚ Nebraska Area served USA Key people Warren E. Buffett (Chairman) & (CEO) Charles T. Munger (Vice Chairman) Industry Property and casualty insurance‚ Diversified investments Products Conglomerate focused on insurance Market cap US$ 196
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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
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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 of BNSF may have seemed to differ from his usual business model‚ but the outcome was the same‚ with having a stabilized cash-float. With the oil boom and increase in agriculture‚ and industrial shipments‚ this made BNSF a perfect financial asset for Mr. Berkshire Hathaway. What does Berkshire Hathaway’s purchase of BNSF Railroad say
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Berkshire Hathaway Inc. to: William Cochran from: subject: Pacificorp Acquistion analysis and recommendation date: The following memo analyzes MidAmerican’s potential acquisition of PacifiCorp. Contents included involve a financial analysis‚ qualitative analysis‚ valuation‚ and acquisition recommendation. After careful review‚ MidAmerican should acquire PacifiCorp at the current offering price of $9.4 billion ($5.1 billion in cash and $4.3 billion in attached liabilities and preferred
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Berkshire Hathaway Business Analysis and Valuation April 2010 Vinod Palikala vpalika@hotmail.com Business Analysis and Valuation by Vinod Palikala Contents 1. 2. 3. Company Overview ............................................................................................................................... 3 Valuation Approach .............................................................................................................................. 4 Valuation ...............
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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
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