Berkshire Hathaway

3600 words 15 pages
Show More
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 Billion (2008)

Revenue
▲ US$ 118.245 Billion (2007)

Operating income
▲ US$ 20.161 Billion (2007)

Net income
▲ US$ 13.213 Billion (2007)

Total assets
▲ US$ 273.160 Billion (2007)

Total equity
▲ US$ 120.733 Billion (2007) …show more content…

Bill Gates' Cascade Investments LLC is the second largest shareholder of Berkshire and owns more than 5% of class B shares.
Berkshire Hathaway is notable in that it has never split its shares, which not only contributed to their high per-share price but also significantly reduced the liquidity of the stock. This refusal to split the stock reflects the management's desire to attract long-term investors as opposed to short-term speculators. However, Berkshire Hathaway has created a Class B stock, with a per-share value kept (by specific management rules) close to 1/30th of that of the original shares (now Class A) and 1/200th of the per-share voting rights. Holders of Class A stock are allowed to convert their stock to Class B, though not vice versa.
Buffett was reluctant to create the Class B shares, but did so to thwart the creation of unit trusts that would have marketed themselves as Berkshire look-alikes. As Buffett said in his 1995 shareholder letter:
"The unit trusts that have recently surfaced fly in the face of these goals. They would be sold by brokers working for big commissions, would impose other burdensome costs on their shareholders, and would be marketed en masse to unsophisticated buyers, apt to be seduced by our past record and beguiled by the publicity Berkshire and I have received in recent years. The sure outcome: a multitude of investors destined to be

Related

  • Stock and Berkshire Hathaway
    3191 words | 13 pages

    1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? The significant change in stock prices for Berkshire Hathaway and Scottish Power plc is partially due to the wide variety of products produced under these names. The approval of these investments and products….

    Show More
  • Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory
    2600 words | 11 pages

    Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Septtember 2013 Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Introduction Over the 46 years ending December 2012, Warren Buffett (Berkshire Hathaway) has achieved a compound, after-tax, rate of return in excess of 20% p.a. Such consistent, long term, out performance might be viewed as incompatible with modern finance theory. This essay discusses the Berkshire Hathaway phenomenon in….

    Show More
  • Purinex, Inc
    2942 words | 12 pages

    Warren Buffett 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Answer1: The increase in the stock price of Scottish Power plc and Berkshire Hathaway indicate a market approval for the acquisition and created value for both buyers and sellers. Answer2: a….

    Show More
  • Warren Buffet Case Solution
    2050 words | 9 pages

    are stock price changes for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement. Also, the bid price for PacifiCorp is $9.4 billion. After knowing this announcement, Berkshire Hathaway’s Class A shares price went up and make them gained in market value $2.17 billion. In Berkshire and other investors’ point of view, After Berkshire takeover PacifiCorp, it might have a good development and future so that the stock price went up. Berkshire believed that PacifiCorp can….

    Show More
  • Leadership Warren Buffet
    1924 words | 8 pages

    conservative and choosy in his investment decisions. Unless he understands business very well, he will not make any impulsive investments. Even in the age of globalization and electronic commerce, Buffett’s advice remains a guiding principal for Berkshire Hathaway investments. As per Buffett, “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price” Even at the age of 79, Mr. Buffett attends his office every day and makes investment decisions for his company….

    Show More
  • Phl458 Famous Thinker Paper Wk 4
    2293 words | 10 pages

    powerful as the United States could set the example for the rest of the world (Newsday, 1992). Warren Buffett is a remarkable businessman who has used a unique strategy of investing in the stock market to establish great wealth. His stock, Berkshire Hathaway Inc., is the world’s most expensive no matter the market. He saw a problem with the way people invested in the stock market. Most people looked at the numbers behind the company, like balance sheets, and income statements. He did his investing….

    Show More
  • General Information
    2152 words | 9 pages

    the casebook, we will discuss specific issues related to the topic currently being discussed in class. The questions can usually be answered using your own opinions and the case information. The issues to be discussed for the cases follow. Berkshire Hathaway – Tuesday, September 7, 2004 Background: The case captures the dynamics of auditor-client relations. The SEC has….

    Show More
  • Case Question
    2019 words | 9 pages

    Warren E. Buffett, 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for….

    Show More
  • Case Study 1: Setting Some Themes (Case 1: Warren Buffett, Case 2: Bill Miller and Value Trust
    1257 words | 6 pages

    CASE 1: Warren Buffett From Warren Buffett’s perspective, “intrinsic value is assessed as the present value of future expected performance” (Bruner, Eades, & Schill, 2010): in order to determine whether the investment is worth and is therefore fairly operating on the principle of achieving value for this investment. The displays volatility in earning corresponding to the fluctuation of prices will give investors the cheapest price when the investment shown by the discounted-flows-of-cash calculation….

    Show More
  • Aig Accouncing Scandal 2005
    1937 words | 8 pages

    Wei Kevin Luk Kevin.luk@stmartin.edu Wei Kevin Luk Kevin.luk@stmartin.edu AIG’s “LOSs Reserve” accounting Scandal 2005 AIG’s “LOSs Reserve” accounting Scandal 2005 Introduction AIG, American International Group Inc., is one of the top multinational insurance corporations. AIG, with asset of 556 billion, provides insurance service for more than 150 different countries and it has over 630, 000 employees over the world. Even though AIG is such a giant corporation, it has….

    Show More

Popular Essays