sample
Haven't found the Essay You Want?
For Only $12.90/page

Berkshire Hathaway Essay Topics & Paper Examples

Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory

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 the context of modern finance theory. Part 1 Modern Portfolio Theory Berkshire Hathaway’s investing strategies mainly differ with modern portfolio theory on two aspects. The first one is the attitude towards the undesirable thing in investment. And the second one is the perspective of diversification. As Harry Markowitz pointed out…

Warren Buffet

Executive Summary: Warren E. Buffett is one of the world’s richest men with a net worth estimated at $44 billion by Forbes magazine. Buffett is known for his patient approach to investing and making long-term investments in steady, predictable industries that generate positive cash flow. It was announced that MidAmerican would purchase the regulated electric utility PacifiCorp from Scottish Power, for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock. This would be the second largest purchase of his career. After the announcement, stock prices for both PacifiCorp and Berkshire Hathaway increased, by 2.4% and 6.28% respectfully, which suggests market approval for the acquisition of PacifiCorp. Problem: From the increase in stock price, we can assume that…