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Economic Behavior Berkshire Hathaway It Will Be Essay

Economic Behavior Berkshire Hathaway

It will be fun to follow Bershire Hathaway because Warren Buffett is a mastermind at selecting companies in which to invest and I have never had the time to really learn about his holdings.

Berkshire Hathaway, Inc. is a publicly owned investment manager in the property and casualty industry of the finance sector (Yahoo Finance, 2011). Essentially, the firm is a holding company with a variety of businesses across the globe (Yahoo Finance, 2011). In the beginning, the company was just a group of textile mills, but Warren Buffett got the controlling shares in the mid1960s and began to divert cash flows (float) from the core businesses and invest the money in other types of businesses (Yahoo Finance, 2011). Berkshire Hathaway's subsidiaries engage in the business of insurance and reinsurance of property and casualty risks (Yahoo Finance, 2011).. The firm was founded in 1889 and is headquartered in Omaha, Nebraska (Yahoo Finance, 2011).

In the New York Stock Exchange, Berkshire stock trades as both A shares and B. shares (Investopedia, 2010). .The A shares command high prices, often in excess of $10,000 (Investopedia, 2010). Buffett invests for the long-term and doesn't favor a diversified portfolio (Investopedia, 2010). . He puts his money in a small number of trusted investments that are over-weighted to leverage anticipated return (Investopedia, 2010).
Warren Buffett announced plans to buy back his own shares saying that they may be the best and cheapest investment in the market right now (August CNN Money, 2011). Since the supply and demand in reference to Berkshire Hathaway refers to investments and stocks, some of the dynamics may be disrupted (August CNN Money, 2011). Berkshire Hathaway was not short of cash at the time of the repurchase, but it is…

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References

Farrell, M. (2011, August 26). Buffett's one-day win on Bank of America: $357 million. CNN Money. Retrieved http://money.cnn.com/2011/08/26/markets / warren_buffett_bofa_profit/index.htm?iid=EL

Farrell, M. (2011, September 26). CNN Money. Retrieved http://money.cnn.com/2011/09/

26/markets/buffett_berkshire_buyback/index.htm

Berkshire Hathaway, Investopedia. Retrieved http://www.investopedia.com/terms/b/berkshire-hathaway.asp#ixzz1ajECr68Z
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