Warren Buffett Essay

Leadership Warren Buffet Essay
About Leader
Warren Edward Buffett, who was often called the "Oracle of Omaha" or the "Sage of Omaha",
born August, 30th 1930 in Omaha, Nebraska. In his early age, Mr. Buffet started working in his
grandfather's grocery store. He purchased his first stock at age 11, which he ended up making a
five–dollar profit on this investment. At age 14, he started working as a newspaper delivery boy.
He got his bachelor's degree from The University of Nebraska. Mr. Buffett graduated from Columbia
Business School and earned M.S. in Economics in 1951. Shortly after completing college, Warren
founded the Buffet partnership.
Warren Buffet married in 1951 and had three children. In 2008, Forbes magazine had ranked Mr.
Buffett as the richest person in...show more content...
Its sale has grown from a few thousand dollars to more than $107 billion. In the late 1970, it was
Mr. Buffett's decision to expand into insurance operations. Today, the company's insurance operation
is a major source of capital for Berkshire Hathaway's other investments.
When Buffett made a decision in expanding into insurance, the insurance industry was a booming
business. He always made sure Berkshire's insurance companies maintained capital strength at
exceptionally high levels. This strength differentiated Berkshire's insurance companies from their
competitors. Again this proves his market acumen and visionary ability which helped to see future
trend and understand business well ahead of other rivals.
After Warren Buffett converted Berkshire Hathaway from a textile to an insurance company, he
started doing strategic acquisition. Initially he looked for reinsurance companies in the United States
that had sound management, but were in need of capital to expand. In today's economic
uncertainties, Buffett's saying will remain a guiding principal for all investors:
"Be fearful when others are greedy; be greedy when others are scared for their capital". Mr. Buffett
started expanding Berkshire Hathaway's business into life, accident and health reinsurers. He did
strategic investments and acquisition in internationally–based property and casualty reinsurers. In
the late 19th century, when the financial market took a
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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

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 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 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

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

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

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

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

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 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,

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: 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

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 '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

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 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 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 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

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 Essay

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