Institutions of Warren Buffet - Case Study Example

Only on StudentShare

Extract of sample
Institutions of Warren Buffet

These subsidiary companies are engaged in a wide range of business activities. The main ones are primary insurance and reinsurance business.
Over the years it has acquired a myriad of subsidiaries engaged in diverse business operations like utilities and energy (MidAmerican Energy Holdings Company), manufacturing-service-retailing (Marmon group), wholesale distribution & logistics (McLane), jewelry (Ben Bridge Chain), carpets (Shaw Industries), bricks & boots (Justin Industries). The insurance (both primary and reinsurance) business is through more than sixty national and overseas enterprises.
Berkshire being primarily in insurance business in effect means that the premium for undertaking risk generates cash which is available for investment when the opportunity knocks. The reputation of Mr. Buffet has been built over the years is due to the fact that he has been consistent in picking winning opportunities by and large. This translates into the fact that almost of the business acquisitions turn out to be profit making ones, which in turn swell the coffers of Berkshire to be ready to invest.
Contrary to expectations and common belief, Berkshire does not invest by only trading in stock i.e., picking stock at low price and selling, but also by investing in the businesses and earning through their operations.
"For some sellers Berkshire is a refuge, a place to land when, say, some members of a family that contr ...
Download paper


The funds / institutions being examined is Berkshire Hathaway Inc. (Berkshire) group of companies. This particular institution has been chosen as Mr. Warren Buffet is its Chairman of the Board and Chief Executive Officer. He has been an officer in it since 1965 i.e…
Author : sschmidt

Related Essays

The Financial Crisis and Competition Policy
This was due to the fact that eastern economies had a more savings trend whereas western economies were spending more money. Moreover writer has criticized the overall macroeconomic environment and the prevalence of laissez faire concept in the economy. Laissez faire is a vital concept for the well being and grooming of the economy but it is to be argued that this concept was in place and is still in place but with some limitations and the market was never let go wild otherwise the result would have been more malignant....
5 pages (1255 words) Book Report/Review
The Purpose-Driven Life by Rick Warren
It should also be highlighted that this book is not only aimed at a particular Christian denomination, say Protestant or Catholic, rather the author tackles a universal theme that most, if not all, churches can relate to....
7 pages (1757 words) Essay
Financial Institutions and Instruments
An investment strategy has more to do with responsibly, and often conservatively, managing an investment portfolio in order to maximize gains with a minimum of maintenance, a low number of transactions (and their attendant costs), and a minimum of risk....
13 pages (3263 words) Essay
Banker institutions
Banker institutions play as an intermediary. It provides different types of financial services to both. Banker institutions contribute enormously and significantly in the expansion of economy of any country and development. It facilitates trade, savings and investment. These institutions work as intermediaries and with the help of several instrument and products for different segments of the population and facilitate their customers to grow all-round. The financial market consists of money market and capital market. The former consists of buying/selling of lending/borrowing instruments whereas...
8 pages (2008 words) Essay
Warren E. Buffet 2005
All along Buffett created his own rules in the game of investments in the stocks and has achieved a fair degree of success. This paper critically examines the investment philosophies and decisions of Warren Buffett while detailing the performance and investments of Berkshire Hathaway, the flagship company of Buffett including the second largest acquisition of Buffett of Pacific Corporation, a regulated energy producing company in the United States....
19 pages (4769 words) Essay
Warren Buffet
The active management always attempts to select attractive areas of investment. They decide the ripe time to join and enter markets, sectors, and places of leverage in the market. Their point is to make profits, and always aspire to do more than they could be doing....
2 pages (502 words) Essay
These subsidiary companies are engaged in a wide range of business activities. The main ones are primary insurance and reinsurance business....
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!