Warren Buffett's Investing Strategy and Philanthropic Contributions

Warren Buffet Essay
Warren E. Buffet Analysis: 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 PacificCorp? 2 Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? (I am looking
for numbers, but they are given in the case). 3 Assess Berkshire's bid for PacifiCorp. Does it make sense given your answer to #2? Hint: How was has
Berkshire Hathaway performed in the aggregate? What about some of its specific investments such as MidAmerican Energy Holdings?...show more
content...
Both have huge investment in very long–lived, regulated assets, with these partially funded by large amounts of long–term debt that is not guaranteed
by Berkshire. Their credit is not needed because each business has earning power that even under terrible conditions amply covers its interest
requirements. In last year's tepid economy, BNSF's interest coverage (pre–tax earnings/interest, not EBITDA/interest, a commonly–used measure they
view as deeply flawed) was 9.6x. Two key factors ensure MidAmerican's ability to service debt under all circumstances: the company's
recession–resistant earnings, which result from its exclusively offering an essential service and its great diversity of earnings streams, which shield it
from being seriously harmed by any single regulatory body. Every day the two subsidiaries power the American economy in major ways. BNSF
carries about 15% (measured by ton–miles) of all inter–city freight, whether is transported by truck, rail, water, air, or pipeline. It moved more
ton–miles of goods than anyone else, a fact making BSNF the most important artery in our economy's circulatory system. MidAmerican's electric
utilities serve regulated retail customers in 10 states. Only one utility holding company serves more states. In addition, they are the leader in
renewables: first, from a standing start nine years
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Warren Buffet Essay
Warren Buffet Warren Buffet of Berkshire Hathaway and His Investment Strategy Warren Buffet is arguably the most successful investor of all time.
His initial investment of $105,000 in the beginning, ultimately grew into a $16 billion dollar fortune made from his trading company, Berkshire
Hathaway. If you had invested $10,000 in Berkshire Hathaway when he took over the company in 1965, it would be worth $22,000,000 today. Warren's
stockpicking prowess however, is what he is know for and is also why Berkshire Hathaway has had a returning average of 24% a year for the last three
decades. At the age of 69 he is one of the richest men alive, with a net worth of over $27,265,000,000.00, placed only second to Bill Gates.
Since...show more content...
The following are some parts of Warrens investing strategy.
 He is a long–term investor. He has said that you should invest in companies that you would feel comfortable with even if the markets closed
for a few years and you couldn't sell.
 He views investing as buying a piece of a business, rather than buying shares of stock.
 Buffet considers the following very important: return on equity, changes in operating margins, debt levels, capital expenditure needs, and
cash flow.
 He determines the value of a company by totaling the net cash flows he expects to occur over the life of the company, discounted at the
appropriate interest rate (Buffet uses 30 year bond rates), and possibly a premium based on the risk being taken.
 He prefers to hold a few great stocks rather than many good stocks. He thinks most investors misunderstand the nature of risk and the need
for diversification.
With these strategy tips for investing you can decide whether or not you want to incorporate these into your own strategy or not to at all. All of these
tips can be useful in evaluating a stock, but remember this is Warren's strategy. An example is his belief of not investing in companies that he doesn't
know about. One of these sectors has been technology stocks. He missed out on the Microsoft wave with only a 100 shares bought in the beginning, but

The Contributions Of Warren Buffett
Warren Buffett
Colson Witten
Mr Vance
Dec. 5, 2014
CHW4U
"Philanthropy is commendable, but it must not cause the philanthropist to overlook the circumstances of economic injustice which make philanthropy
necessary." Martin Luther King Jr.
Warren Buffett is currently the third richest person on the planet with a network of 73.5 billion dollars. He was able to amass his vast fortune through
his companies as well as his incredible ability of investing in profitable stock. However, despite having such vast personal wealth, Buffett continues to
be an extremely generous person. He has given away a large portion of his fortune to charities to help out people who are less fortunate than him.
Warren Buffett has provided a...show more content...
According the the campaign's official website the goal of the campaign is to, "help address society's most pressing problems by inviting the
world's wealthiest individuals and families to commit to giving more than half of their wealth to philanthropy or charitable causes either during
their lifetime or in their will." So far there have been 128 billionaires who have signed the pledge and together these people have already pledged
over 500 billion dollars to philanthropic causes. While most of the billionaires who have signed up so far are from the United States, Buffett has
gone to both China and India to try and encourage the people there to sign up as well. Encouraging other people to give money is another way that
Buffett has contributed to society. Finally, because Warren Buffett is donating so much of his wealth and because he is encouraging others to donate
as well, the charities and foundations that receive these funds are able to do a great deal for society. The Howard G Buffett Foundation (one of the
organizations supported by Warren Buffet and started by his son) according to its website is attempting to "improve the standard of living and quality
of life for the world's most impoverished and marginalized populations." It is doing this by teaching people in Africa how to farm and providing them
with water so that they can grow crops. The Novo Foundation (a foundation started by another one of

Case Study Of Warren Buffett
Introduction The Oracle of Omaha or in other words, Warren Buffett, is as considered one of the most successful investors.The reason why this report
is stated about him is that he have so many problems already, for example running the company, yet he still chooses to donate everything he has.This
report represents Warren Buffett actions, struggles, and kindness to the world.He has chosen to give other people a chance instead of eliminating them
but not only that he have also supported them. CHAPTER 1 EARLY LIFE Although Warren Buffett is one of the most successful investors and still
remains as the third richest man, he was not always rich, no joke.Although this seems true he was making money since he was six when he graduated
from high school he has already successfully made 5,000 dollars.When Warren Buffett was six he had purchased 6–packs of Coco Cola from a grocery
store for twenty–five cents, reselling each Coco–Cola bottle for a nickel putting five cents

Warren Buffett Essay
Berkshire Hathaway Inc.      Warren Buffett has been called the world's greatest investor. That is a very accurate
nickname. He certainly knows about investing, or he wouldn't be worth over $36 billion today (www.forbes.com). In fact, if you had invested
$10,000 in Berkshire Hathaway when he took over in 1965, you would have about $22,000,000 today (www.investorguide.com). Moreover, had you
invested $10,000 with him from the beginning, in 1956, you would now be worth closer to $85 million (Lowe).
     Warren Edward Buffett was born on August 30, 1930 in Omaha, Nebraska. He is the son of Howard and Leila
Buffett. Howard, a long–time resident of Omaha, was a local stockbroker and member...show more content...
Buffett chose his investments "on the basis of value not popularity." This is the strategy he learned from Professor Graham– buy shares in a company
as long as they are lower than the company's intrinsic value. He bought not only minority positions, but also controlling interests in several public
and private companies. In 1962 he began purchasing shares in an ailing textile manufacturer called Berkshire Hathaway (Hagstrom). Buffett's
reputation became more widely known and more investors came aboard. By 1965, the partnership's assets had grown to $26 million. In 1969
however, Warren found himself out of his element. The stock market was booming, and even poor risks were selling way over their business value.
Buffett decided to call it quits. So he distributed to each investor his capital plus profits and gave them three choices: They could go off on their own,
or Buffett would buy them a spread of municipal bonds with their money, or he would refer them to other investment advisors (Train). This was a
timely decision. Three years after the partnership dissolved, the stock market had its worst collapse in decades. During this slump, Buffett restarted his
business, taking advantage of all of the extraordinary bargains that became available. "I'm like a sex starved guy in a harem," he announced (Train). He
continues to work/invest to this day. Over the years, Buffett has acquired newspapers, insurance companies, tobacco

Warren Buffett Warren Edward Buffett is an American business magnate, investor and philanthropist. He is the most successful investor in the
world. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and is consistently ranked among the world 's wealthiest
people. He was ranked as the world 's wealthiest person in 2008 and as the third wealthiest in 2015. In 2012 Time named Buffett one of the world 's
most influential people. Buffett is often referred to as the "Wizard of Omaha" or "Oracle of Omaha," or the "Sage of Omaha," and is noted for his
adherence to value investing and for his personal frugality despite his immense wealth. Buffett is a notable philanthropist, having pledged to give away
99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. On April 11, 2012, he was diagnosed with prostate cancer, for
which he successfully completed treatment in September 2012. Buffet is also active in contributing to political causes, having endorsed Democratic
candidate Hillary Clinton for president during the 2016 campaign season. Buffett was born in 1930 in Omaha, Nebraska, of distant French Huguenot
descent. He was the second of three children and the only son of Leila and Congressman Howard Buffett, Buffett began his education at Rose Hill
Elementary School. In 1942, his father was elected to the first of four terms in the United States Congress, and after moving with his family to
Washington, D.C., Warren finished

Warren Buffett Case Study
Warren Buffett, known in the financial world as the "Oracle of Omaha", has reached the summit of business excellence and has become the most
judicious financial investor and is admired the world over. Warren Buffett is an investor 's icon with a magnificent ability to select companies that will
yield great profit year after year.
Through Warren Buffett's case study, we can see many financial principles. His principles arenВґt very complex and you probably donВґt have to be a
mathematical or a social science genius to understand them. But in order to apply them you need a very conservative, clear and analytical character.
Some few of those are following:
Economic reality, accounting reality: Buffett devotes most of his attention not to...show more content...
The public has always seen in Warren Buffett a different kind of capitalist, an honest observer providing sound financial advice regardless of his
personal interests. One of Buffett's differences is his attitude of risk and discount rates. From financial management standpoint, financial leverage can
increase the shareholders ' return on their investment and often there are tax advantages associated with borrowing. Debt financing magnifies
changes in operating income into even greater proportionate changes in earnings after taxes. A lot of firms use leverage in order to expand
operations. Buffett thinks different. He, with his attitude of risk and discount rates, frowns upon companies with high levels of debt. His firm used
almost no debt financing. He focused on companies with predictable and stable earnings. He prefers that earnings growth is generated by shareholder
equity as opposed to borrowed funds. In this case, the higher the ratio becomes, the more debt that a company carries. And while this figure varies
from industry to industry, a good way to measure it would be by looking for a ratio that is less than 80% of the industry average (Christ, 2008).
These, of course, are just a few of the many ways that Warren Buffet has built up his massive portfolio over the years. The difference between his own
financial principles and financial management standpoints has not only made him wealthy, but has also made

Warren Buffett Leadership Influence
Leaders come in all shapes and sizes, forms and varieties; some are loud, boisterous humans oozing charisma, like Tony Robbins. Others may have
an equally large impact, but are introverted, speak softly, but carry a big stick. The world needs both. Warren Buffett, affectionately known as the
"Oracle of Omaha," is a classic example of a quiet man who has made an immeasurable influence on business and society overall. His leadership
success could be measured by the eighty billion dollars in personal wealth he has amassed over the years, but that is not the course his legacy will
take, nor would he want it to. Buffett's story began in the summer of 1930, during the Great Depression, in the town of Omaha, Nebraska. He was
born to a stockbroker father and homemaker mother. From a young age, it was clear that Buffet was a business prodigy. He first purchased stock
at 11 years old, and as a 13 year old paperboy, he filed a tax return where he was able to write off his bike as a deduction. By high school, he had
purchased a pinball machine and was running a business. At age 19 he graduated from the University of Nebraska, and went on to receive a Master's
Degree in economics from Columbia University. In 1965, he took control of Berkshire Hathaway, and as CEO, began to transform it into a global
business empire. Over the next 50 years, Buffett would expand the company through brilliant investments in media outlets like The Washington Post,
GEICO insurance, and oil giant,

Characteristics Of Warren Buffett
Traits of Warren Buffett Traits are the component of a person's that is used to distinguish personal characteristics (Lussier & Achua, 2013). Warren
Buffet has a lot of traits that lead him to success. He is a humility person. He is humble to reject the idea of dynastic wealth and he does not feel
anything that have been handed to him and believes working for something is important. After that, Warren Buffett is humble in doing the charity jobs.
Warren Buffett announced that his fortune will go to the Bill & Melinda Gates Charity Foundation, which is the largest charitable giving in history in
2006. Sharing wealth is always been repeated and emphasized by Warren Buffett and he is working and donating more efforts into achieving his idea
(Hedayati, 2013). Warren Buffett is a confidence leader. He focuses on build the team, giving...show more content...
One person's behaviour, relationships, and decision making is influenced by his personality. Personality is growth by genetic and affected by
environmental factors. There is big five model of personality, such as surgency, agreeableness, adjustment, conscientiousness andopenness to
experience to categorizes one person's traits (Lussier & Achua, 2013). The first big five model of personality is surgency, which includes dominance,
extraversion and high energy with determination. Warren Buffett is an extraversion people. He builds strong mentor–mentee relationship between his
employees and himself. In agreeableness, Warren Buffett has the personality of sociability. He enjoys to has the enjoyable social relationship with
social. Warren Buffett earns a lot of money and he is not focusing on herself only, he also likes to help the community by donating money to help
others. For example, he donates the money to Bill & Melinda Gates Charity Foundation. He is never feeling shy in explaining his thinking to public,
social media and so on.

Warren E Buffett, 2005 Essay
UV0016 Version 2.5 WARREN E. BUFFETT, 2005 On May 24, 2005, Warren E. Buffett, the chairperson and chief executive officer (CEO) of
Berkshire Hathaway Inc., announced that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway, would acquire the electric
utility PacifiCorp. In Buffett's largest deal since 1998, and the second largest of his entire career, MidAmerican would purchase PacifiCorp from its
parent, Scottish Power plc, for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock. "The energy sector has long interested us, and this
is the right fit," Buffett said. At the announcement, Berkshire Hathaway's Class A shares closed up 2.4% for the day, for a gain in market value of $2.55
...show more content...
What were Buffett's probable motives in the acquisition? What did Buffett's offer say about his valuation of PacifiCorp, and how would it compare
with valuations for other regulated utilities? Would Berkshire's acquisition of PacifiCorp prove to be a success? How would Buffett define success?
Berkshire Hathaway Inc. Berkshire Hathaway was incorporated in 1889 as Berkshire Cotton Manufacturing, and eventually grew to become one of
New England's biggest textile producers, accounting for 25% of the United States' cotton textile production. In 1955, Berkshire merged with Hathaway
Manufacturing and began a secular decline due to inflation, technological change, and intensifying competition from foreign competitors. In 1965,
Buffett and some partners acquired control of Berkshire Hathaway, believing that its financial decline could be reversed. Over the next 20 years, it
became apparent that large capital investments would be required to remain competitive and that even then the financial returns would be mediocre.
Fortunately, the textile group generated Berkshire Hathaway "Class A" vs. S&P 500 Composite Index enough cash in the initial $100,000 years to
permit the firm to purchase two Berkshire Hathaway Inc. "A" insurance companies $10,000 headquartered in Omaha: National Indemnity Company
and National $1,000 Fire & Marine Insurance S&P 500 Composite Index Company. Acquisitions of other

Warren Buffet Essay
Warren Buffett Warren Edward Buffett is known for being a famous American investor. He was born in Omaha, Nebraska on August 30, 1930.
Warren was born to Leila and Howard Buffett. His father, Howard, was a stockbroker and also became a member of congress. Warren showed early
signs of being entrepreneurial through being involved in various business dealings as a child. He also made his first investment in the stock market
when he was just 11 years old. In his teen years he began studying at the Wharton school of finance at University of Pennsylvania. He then went on to
Columbia University to receive his master's degree. While going to school there he met an influential value investor Benjamin Graham. Buffett was
influenced...show more content...
Before the end of the year the company became worth over 300,000 dollars. By this time in his life he had three children, a beautiful wife, and a new
house. The next few years of the partner ship earned around 251.0%. By 1962 the partnership had a capital of 7.2 million. This partnership continued
to grow over the new decade. Ten years after founding the Buffett Associates the assets were up more than 1,156%. Warren's personal stake was worth a
cool 7 million. In may 1969 he liquidated the partnership informing his partners that he was unable to find bargains in the current market. Buffett's
intentions were to keep his 29% of the company, but his intentions weren't revealed. On May 10, 1965, after accumulating 49% of the common stock,
Warren named himself Director. Terrible management had run the company nearly into the ground. After this the company continued doing well and
Buffett appointed someone else to head the company. In the coming years Buffett's value rose immensely. In the late sixties and early seventies Warren
invested in several companies which paid off. A company by the name of See's candy became a great investment. He bought the company for 25
million. The chocolate company came to be known as the best investment he ever made. Benjamin Graham died in the early seventies leaving Buffett
with millions. Later on in the year Susan

Ethical Leadership : Warren Buffett
Ethical Leader Warren Buffett is an Ethical Leader because he was able to use the Three P's (Principle, Purpose, and People) as his guiding ethical
principles for running the day to day operations of the company. According to the Ethical Leadership student guide, the Three P's are a guide for the
way we should think; principle for integrity and telling the truth, purpose for developing a sustained passion for accomplishing the mission, and people
referring to each member working together as a team to reach common goals (VL04, Ethical Leadership, 2016). According to Arthur Schwartz in
bizjournal.com his business philosophy has to do with a set of core values, the first of which is integrity and in 1991, Warren Buffet wrote a simple
...show more content...
He wanted everyone to be reassured that it was okay to lose money but doing anything unethical that tarnished the company's reputation was not okay.
Just because everyone else is doing it, referring to unethical business decisions, doesn't make it a good business decision (Nicholas, 2011). Now that
I've shown you why he is an Ethical Leader, let me explain my personal relevance.
Personal Relevance Like Warren Buffett, I use Idealized Influence to be a role model for my Airmen. For example, when I was at my last base, even
though I was a Master Sergeant, I got certified on everything my Airmen were certified on. The only way I would have any credibility is if I
walked the walk so I would be the first to load at the beginning of every month and during inspections. They used to tell say I was the model and they
were the mirror, it was humbling. During the biggest inspection in the North Atlantic Treaty Organization (NATO), the Commander of the evaluation
team said it had been the best evaluation he had ever seen. I was proud my Airmen did so well. I've learned Inspirational Motivation is something I
lack. It's not my natural behavior to be outgoing and deliver a motivational speech but that is one good take away from this course because it is
something

Warren Buffett's Success And Failures
Known as the "Oracle of Omaha," Warren Buffett's name is synonymous with money and success. One may not know exactly how Warren Buffett
has made his fortune, but his name is easily recognizable. If nothing else is known about Warren Buffett, it should be known that he has promised
99% of his wealth to charity after he passes. Who wouldn't be inspired by that? His current net worth, as of April 2016, is estimated to be nearly $67
billion, and was named the richest person in the world in 2008, overtaking Bill Gates who held the title for thirteen consecutive years. He started
working at age 11 selling newspapers, and is still going strong at 85 with no intention of retiring. The extraordinary entrepreneur has made his legacy
through a multitude of both successes and failures. There is much to learn from him, and luckily for us, he dishes out advice willingly. He is in great
demand as a speaker on leadership, and has written extensively on his successes and failures in business. Throughout his career, Buffett has bought,
held, and sold companies in a variety of industries.
Warren Buffett, born August 30th, 1930 in Omaha, Nebraska, is considered to be the most successful investor in the world and is consistently ranked
among the world's wealthiest people. However, one of the things he is most known for is his frugality. He lives on a salary of $100,000 a year and
still maintains his position as president, chairman, and CEO of Berkshire Hathaway, even at age 85. Berkshire

Leadership Qualities Of Warren Buffett
Warren Buffett is one of the richest men in the world possessing incredible leadership qualities. He is also recognized as one of the world's most
influential people. Buffett is both cautious in his investments and frugal with his money. His father was a congressman and stock broker. Buffett
began making financial investments at the young age of eleven. He later sold the stocks purchased in this investment for a small profit. Buffett lives
by two simple rules when it comes to investing his money. Quite simply, his first money strategy rule is do not lose money and his second rule is do
not forget rule one (Hom). His first firm, Buffett Partnership, was built through money he saved in his childhood investments (Hom). He has been the
chairman and CEO of Berkshire Hathaway since 1951 (Hom). "Buffett lives in Omaha in the five–bedroom house he bought for $31,500 more than 50
years ago" (Hom). In spite of his vast wealth, he lives a frugal life. He receives a base salary of $100,000 (Hom). Northouse defines leadership as "the
ability to impress the will of the leader on those led and induce obedience, respect, loyalty, and cooperation" (p.2). Sociability is an important trait,
which Buffett has shown to possess. It is vital for leader to obtain interpersonal skills and have a healthy supportive relationship with their followers. A
well–known quote from Buffett is, "Focus on your customers and lead your people as though their lives depended on your success"

Warren Buffett
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 of Berkshire's offer. Student analysis readily extends into the investment philosophy and the
remarkable record of Berkshire's chair and CEO, Warren E. Buffett. The case is an introduction to a finance course or a module on...show more content...
Moreover, it deals with the immediate opening problem of the case: the market's response to the PacifiCorp announcement. Finally, it should help to
motivate a discussion of Buffett's investment philosophy. 2.Based on your own analysis, what do you think PacifiCorp was worth on its own before its
acquisition by Berkshire? This question expands upon the opening question and helps deepen the mystery about the acquisition–the bid price seems to
be a fairly full–price offer for PacifiCorp. 3.Well, maybe Buffett is overpaying–does he have a record of overpaying in the past? Here, the discussion
should shift to an analysis of Berkshire's general record, its experience with MidAmerican, and its experiences buying equity positions in the Big
Four. The general conclusion will be that Buffett has done very well as an investor and as the manager of Berkshire. 4.Here are the major elements of
Buffett's philosophy. What do those elements mean? Do you agree with them? On a sideboard, one could list the major topic headings given in the
case. The aim here should be to discuss the intuition behind each point: why Buffett holds those views and what they imply for his work. If the
students already have been exposed to the major underpinnings of modern finance, this segment of the discussion would take the form of a quick
review. For novices, this segment would warrant slower development. 5.Let's return to the

Warren Buffett Research Paper
Warren Buffett was a very successful financier. He was investor guru, one of the richest mans in the world, and the most respected man in the
business world. Buffett's occupation is a business leader and a philanthropist that lead him to a very successful path. Warren parent's saw potential in
him since a little child because he would do mathematical equations in his head. At an early age, he worked as a stockbroker and would invest his
money in certain stocks. He worked his way up by additional investing his monetary assets in media, insurance, energy, food, and beverage industries
that gave him billions of dollars in return. Presently his 86 years of age, he has stated on his will that he will donated about eighty percent of his wealth

Warren Buffett 's Investment Philosophy
Warren Buffett's investment philosophy Warren Buffett, Berkshire Hathaway Company 's chief executive, one of the most successful investors in the
world, is a world–famous Finance Expert. He conducted numerous investment with great success. Many people think he is the myth of the investment
community. They want to know Buffett 's investment philosophy. "Over the years, Buffett had expounded his philosophy of investing in his
chairperson 's letter to the shareholders in Berkshire Hathaway 's annual report"1 (Case1 Warren E. Buffett, 2005). In these letters, he clarified the core
of his investment philosophy which is how to get the high return through low risk. This essay will analyse the Buffett 's investment philosophy from
these letters...show more content...
4. Limit the autonomy of enterprises and the use of capital functions. In short, debt financing will increase the risk of debt. Therefore, to avoid the
use of debt financing, debt risk can be controlled at a relatively low level, is conducive to the finally financial sustainability. In this way, an
investment may be in a controlled range of operations, rather than being forced by the debt. This investment philosophy can also be wielded in life.
That suggests people should buy things within their own ability. Buffett's personal life also illustrates this investment philosophy: no loans. As his
advice: Stay away from credit cards (bank loans) and invest in yourself.6 (Elyssa Kirkham, 2017) He "has never borrowed a significant amount – not
to invest, not for a mortgage"7. He said: Negotiate with creditors to pay what you can. Then, when you're debt–free, work on saving some money that
you can use to invest.8 Secondly, investors should have correct investing behaviour. That means people should gather enough information and analyse
them before making a correct investment decision. Buffett never makes stock recommendations to others. "Investing behavior should be driven by
information, analysis, and self–discipline, not by emotion or "hunch." 9 Wrote in his chairperson 's letter to the shareholders. This investment
philosophy means an investor should understand the investment environment and make the decision by themselves. In modern society, people are used
to

Case One: Warren Buffett Essay
Case One: Warren Buffett From Warren Buffett's perspective, what is intrinsic value? Buffett defines intrinsic value as "the present value of future
expected performance" or ""the cash that can be taken out of a business during its remaining life" (Bruner 2010). It is a subjective value based on the
analysts' estimates of future cash flows and interest rates. Why is it accorded such importance? It identifies mispriced shares and whether or not "an
investor is indeed buying something for what it is worth" (Bruner 2010). Eventually market price will gravitate towards the intrinsic value. How is it
estimated? By discounting the future cash flows that the business is expected to produce. Buffett uses the thirty year U.S. Treasury...show more
content...
Net Asset Value gauges performance by dividing total assets minus liabilities by the funds outstanding shares and gives the mutual funds price per
share. What does good performance mean to you? Outperforming the market within my own risk parameters. I would determine performance by the
annual growth rate of NAV, and the dollar value today of my past investment, then compare them to a benchmark market portfolio. What might explain
the funds' performance? In order to beat the market a portfolio manager must bet against it. Bill Miller had employed a "contrarian strategy" that the
market was inefficient and bargains could be found through active investing. The strategy was based on lower diversification, risk taking, buying in
bulk at low and falling prices, and a belief that profits could be made by exploiting a market that is irrational, pessimistic, and emotional. To what
extend do you believe an investment strategy, such as Miller's, explains performance? Investment strategies must be flexible. Miller's strategy allowed
him to identify undervalued shares on a consistent basis. However, no–one has a crystal ball and there will always be some inherent good and bad luck.
Millers luck turned into a 6 year losing streak due to failing to foresee the housing crisis and an unwillingness to change his investment strategy. What
roles to

Warren Buffett: House 8-1 Genius Hall Of Fame
"Someone is sitting in the shade today because someone planted a tree a long time ago." Some insightful words said by a true genius, the esteemed
billionaire, Warren Edward Buffett. Warren Buffett truly belongs in the house 8
–1 Genius Hall of Fame. Born in Nebraska, Buffett grew up a business
man. Buffet demonstrated an aptitude for business. By the young age of 35, he had created Buffett Partnership Ltd and had assumed control of
Berkshire Hathaway. Warren Buffet achieved wealth at tremendous levels, becoming one of the richest people. Buffett donates around 2 billion dollars
to charities each year. Throughout his life, Warren Buffet has done unfathomably wonderful things for our community, which is why he belongs in the
Genius Hall...show more content...
a small community of people think him greedy and too rich for his own good. On the contrary, he uses his money for good. June of 2006 Warren
made a proclamation, he was going to give his entire fortune away to charity. Buffett gained all this money, but in the end, he is a kindhearted man
giving it all back to charity. "He wants to raise taxes on other people, but he doesn't want to pay a dime more than he has to pay." Says Tim
Huelskamp. People claim that he wants to have other people pay more for everything. These people don't know the full story. Buffett really just wants
the super rich to pay higher taxes. If the wealthy have all this extra money, pay it towards a nations cause, right. "While the poor and middle class fight
for us in Afghanistan, and while most Americans struggle to make ends meet, we mega–rich continue to get our extraordinary tax breaks," Buffett
wrote in a Sunday New York Times Op–ed. "My friends and I have been coddled long enough by a billionaire–friendly Congress. It's time for our
government to get serious about shared sacrifice," Buffett wrote. Buffet definitely has some strong opinions on the matter. It is visible to see how
some people could be against his ideals, but in the long run he hopes for a better future. All in all, Buffet is prejudiced against and

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