Subject:
Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA and NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt. Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.
Warren Buffett is the company’s chairman and CEO. Buffett has used the “float” provided by Berkshire Hathaway’s insurance operations (a policyholder’s money which it holds temporarily until claims are paid out) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; manufacture, import and distribution of footwear; as well as several regional electric and gas utilities. (Wikipedia Jan 2010)
Post Modern Security Analysis
By John Schroy, on August 6th, 2009 |

The target of classical security analysis is ‘intrinsic value’, a fuzzy concept defined as the value justified by the facts.
Financial markets have become vastly more complex since the days of Graham & Dodd.
Since the 1960’s, stock prices have generally exceeded ‘intrinsic value’. New techniques are needed now to handle the flood of free investment information.
Post Modern Security Analysis
By John Schroy, on July 1st, 2009 |

The old-fashioned, heroic security analyst, working alone in a dark room with a stack of annual reports, in a snow-bound house in Omaha, far from Wall Street, is less likely to solve investment riddles today, than fifty years ago.
The analyst of the 21st century must be ready to engage in collaborative research. The future lies in modern knowledge handling technology, including OSINT techniques, crowdsourcing, wiki software, and capital market taxonomy.
Stock buybacks
By John Schroy, on June 16th, 2006 |

In the 2005 Berkshire-Hathaway annual report, Warren Buffet points to the unethical aspects of the buyback-option schemes so common in the US stock market. He noted that “Too often, executive compensation in the US. is ridiculously out of line with performance. … the deck is stacked against investors when it comes to the CEO’s pay. … CEOs understand … that every dime paid out in dividends reduces the value of all outstanding options”
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