Berkshire Hathaways Investment Strategy, business and finance homework help
Berkshire Hathaways Investment Strategy
BerkshireHathaway Inc. has almost a “personality cult” organizational culture which essentially revolves around one man and his investing prowess.
The man’s name is Warren Buffett, the “Oracle of Omaha.”
Historically, Berkshire Hathaway’s business model has been to purchase insurance companies.
One great thing about insurance companies is the “cash float,” which works as follows.
Suppose that a person purchases a $100,000 whole life insurance policy from Berkshire Hathaway and pays premiums of $4,000 per year to Berkshire for this policy.
The Berkshire Hathaway company is obligated to pay the $100,000 death benefit when the person dies; in the meantime it gets to invest the $4,000 per year “float.”
Warren Buffett, who has been a very savvy investor, has made a huge fortune from investing this float money.
But recently, Berkshire Hathaway has been moving away from purchasing insurance companies with large floats and has been buying major industrial businesses instead.
In 2010, for example, it completed a $44 billion purchase of one of the nation’s largest railroads, Burlington Northern Santa Fe (BNSF).
Berkshire paid for this acquisition with $15.8 billion in cash it had on hand, and the remainder in Berkshire Hathaway stock.
Mr. Buffett, who was born in 1930, is now well beyond the age when most workers retire.
For this activity, answer:
- How does Mr. Buffett’s age affect Berkshire Hathaway’s recent strategic moves such as buying Burlington Northern Santa Fe Railroad instead of another large insurance company?
- What does Berkshire Hathaway’s purchase of BNSF Railroad say about where Buffett thinks the price of energy (oil and gasoline) is going to be in the future?
- How does the energy efficiency of shipping goods via rail compare with shipping goods via truck or airplane?
Things to Remember!
- Your case study should be two to three pages in length (not including title and reference pages).
- Your paper should be double-spaced, with 1-inch margins, in-text citations and references for all resources following proper APA formatting.
The Business Course Help Writing service will make sure that you get the greatest possible academic scores in your Business coursework
Get help with your business coursework by placing an order with us now and allow us to aid you.
Give us the opportunity to create your Business coursework paper, and experience
the magnificence of our Business Course Help authors who will provide you with Business Course papers that include extensive research.
By using the services of a Business Course Help Writing service,
We will guarantee to you the highest possible Business Course credentials.
This will provide you an edge in your academic school work.
Let us to compose your academic paper, whether it is about business, finance, or administration .
Business Course Help will offer you with genuine papers , well researched and tailored to your specific needs.