Warren Buffet

In: Business and Management

Submitted By eypivee
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1. Be prepared to discuss each aspect of Warren Buffet's investment philosophy. Do you agree or disagree? A basis in financial theory is preferred but not required tomorrow.
Berkshire should continue its strategy based on Buffett's investment philosophy of purchasing undervalued assets. Over the past 40 years, Berkshire has increased shareholder value by an average of 21%, twice the average of the S&P 500 over the same period. Berkshire has a time tested set of rules for the best types of companies to acquire, namely to purchase businesses for less than they are worth. Berkshire must continue this strategy in order to increase shareholder wealth.

Specifically, Buffett must use his investment philosophy that has made him so successful. He should continue to seek companies to invest or purchase that he understands and can purchase at a discount.

The economic slowdown is an opportunity for Berkshire to find undervalued assets. Within the U.S. Buffett could look at the financial industry. He could also look at purchasing assets in a few years when the housing industry recovers. Given Buffett's investment philosophy, this would be an ideal time to purchase undervalued assets and hold them for a long time.

Buffett should also be looking outside of the U.S. for investment opportunities. Brazil, India, Europe, and China are all opportunities. China's stock market is down significantly this year. This may be an excellent time for Buffett to search for bargains. Buffett should also look to other international areas for potential companies to purchase. 2. What is your assessment of Berkshire's performance in general and of the MidAmerican investment in particular?
Strengths: Management/Strategy – Directed by Buffet, experienced mngt and entrepreneurial team, successful diversified investment strategies from Buffet, BH has big companies with good health…...

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