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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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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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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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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Warren E. Buffett‚ 2005 Teaching Note Synopsis and Objectives Suggested complementary case about investment managers and superior performance: “Bill Miller and Value Trust” (Case 2). Set in May 2005‚ this case invites the student to assess Berkshire Hathaway’s bid‚ through MidAmerican Energy Holdings Company‚ its wholly owned subsidiary‚ for the regulated energy-utility PacifiCorp. The task for the student is to perform a simple valuation of PacifiCorp and to consider the reasonableness
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Background In 1965‚ Warren E. Buffet and his partners acquired control of Berkshire Hathaway‚ believing they could reverse the financial decline. Over the next 20 years‚ the textile group generated enough cash to purchase two insurance companies and acquired several others over the next decade‚ leading to their exit of the textile industry in 1985. From 1977 to May 24‚ 2005 Hathaway’s share price rose from $102 to $85‚500 per share. Buffet is known worldwide as a financial genius and gives credit
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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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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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Case 1 Warren E. Buffett‚ 2005 A) The possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement means that the market either does or does not approve of the acquisition. Since the market value of the company goes up‚ that means there is a market approval for the acquisition and it has created value for the buyers and sellers. B) I found all the ranges for the medians in Exhibit 10. Implied values for PacifiCorp’s
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How does Warren Buffet see through the noise? “I try to buy stock in businesses that are so wonderful that an idiot can run them‚ because sooner or later‚ one will.” (Warren Buffet) Why are some investors more successful than others? How is it possible that some people are simply better at evaluating the real “intrinsic” value of a company‚ and make lots of money out of it? After reading Nate Silver’s book‚ I came to the conclusion that forecasting is not only based on science‚ but it might also
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