Berkshire Hathaway case study c PDF

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Berkshire Hathaway invests in companies that have a long history of paying dividends. Buffett's strategy is to reinvest dividends rather than paying one out to Berkshire Hathaway investors.

In what ways does Berkshire Hathaway fit the archetypal portfolio manager. Ar cht ypali nv es t or sar ei nv es t or swhoi nv esti near l ys t agebusi nessesandpr ov i denecessar y suppor t .War r entBuffetsuppor t sv al uei nv est i ngandchoosescompani esi nt hesect orwher ev al ue l i esi n.Forex ampl ehi si nv est menti nAppl e,Cocol a.Fur t herhi sr ecentannual gener almeet i ng,he r uedchanceofi nv est i ngi nAmaz onear l y . Fr om hi sv al uei nv es t i ngappr oach,Ai r l i nes ,Oi l&Gas,t echnol ogys ect orcompani esconsi der i ng t hatt hes esect orc ompani esl ackl ongt er m pot ent i al andi ndust r yi shi ghl yr egul at edanddependent ont hel i mi t ednat ur al r esour ces .

Thepor t f ol i oofBer k shi r eHat hawayhashi ghl ydi v er seas pectwi t ht hecompanyhavi ngabr oad r angeofpr oduct s.Thechai r per sonandvi cechai r per sonofBHwi l lofferi nsi ghtont hemanagement oft hecompanydemons t r at i ngt hei mpl ement at i onoft hecompanyt asksandobl i gat i ons.Por t f ol i o manageri nt hi sc asewi l l beani ndi vi dual whosuggest sort ak esi nv est mentdeci si onsofaper sonor t hi r dpar t y .I nmos tc ases,peopl eoptt odel egat er es pons i bi l i t yt oqual i fiedpeopl et omak edeci si ons onani nv est ment .

Warren Buffet still had $73bn to invest. Suggest industries and businesses he would be unlikely to invest in. I nt hecasedescr i bed,aper sonBer kshi r eHat hawayappear st ohavecr edent i al sofat ypi calpor t f ol i o manageral t hought heycannotbet er medasqual i fiedpor t f ol i omanager .I npar t i cul ar ,t heyper f or med exper tdeci si onsoni nv est ment sdespi t enotbei ngt heagentoft hecompany .Ber k shi r eHat haway descr i best hec ompanyasameanst oear ni ngordi s t r i but i ngf unds . Someoft hear easWar r enBuffet ti snotl i k el yt oi nv es ti ncl ude;t het echnol ogys ect or ,busi nesshe doesnotunder s t andhowt heyoper at eormak emoney .Fur t her ,weaponsanddr ugsbusi ness. Al t houghwar r enbuffethad30bi l l i ondol l ar st oi nv estt her ei spossi bi l i t yt hatt heywoul dnotgof or i nv est i ngi nai r l i nebusi nessbecauseaccor di ngt oaf actt hatBer kshi r eal r eadyownsabout10% of t hef ourl eadi ngU. S.car r i er s :Del t aAi rLi nes( DAL) ,Amer i canAi r l i nesGr oup( AAL) ,Uni t edAi r l i nes Hol di ngs( UAL) ,andSout hwes tAi r l i nes( LUV) .Buffet thast ol di naCNBCi nt er vi ewt hati twas unl i k el yt hatBer k shi r ewoul dbuyanai r l i ne,ci t i ngr egul at or yr easonsi ncl udi ngBer k shi r e' sowner shi p ofal ar gest ak ei nAmer i canExpr ess ,whi chhasacr edi t car dpar t ner shi pwi t hDel t a....