Transcript Prezentace aplikace PowerPoint

Lubica Belhadjova 吳筣雪
MA1N0212
Course: Financial Management,
Program: Global MBA, Southern Taiwan university of Sience and Technology
Berkshire Hathaway
• Headquartered in Omaha, Nebraska, USA (source:
www.berkshirehathaway.com)
• A diversified company with major interest in
GEICO, life insurance, annuity sales and sales
of jewelry (source: www.berkshirehathaway.com)
Berkshire Hathaway – Can Buffett
Be Replaced? (1/7)
• In early 1980, investors could buy one share of
Berkshire Hathaway for $285 – may have
seemed expensive at the time
• By 2007, the price of one share had climbed
to $111,000
• Who is behind
the success??
Berkshire Hathaway – Can Buffett
Be Replaced? (2/7)
• Warren Buffett with his partner Charlie
Munger runs a large conglomerate of
– 73 businesses
– with 217,000 employees and
– nearly $100 billion in annual revenues
Berkshire Hathaway – Can Buffett
Be Replaced? (3/7)
• Buffett receives an annual salary of $100,000 –
not much in this age of super CEO compensation
packages
• However, his 31% ownership of Berkshire
Hathaway is valued at nearly $44 billion
• He announced recently his plans to donate $40
billion to philanthropic causes
Berkshire Hathaway – Can Buffett
Be Replaced? (4/7)
Warren Buffett:
• “I’ve taken the easy route,
just sitting back and working
through great managers who
run their own shows. My only
tasks are to cheer them on,
sculpt and harden our
corporate culture, and make
major capital-allocation
decisions. Our managers
have returned this trust by
working hard an effectively.”
Berkshire Hathaway – Can Buffett
Be Replaced? (5/7)
• Many think that Buffett is one of the best
analytical minds in the business
• Berkshire’s annual report is a must-read for many
investors due to a popularity of Buffett’s annual
letter to shareholders – discussing such topics as
investing, corporate governance, and corporate
leadership
• Shareholder meetings in Omaha, Nebraska, have
turned into cult-like gatherings, with thousands
traveling to listen Buffett answer questions from
shareholders
Berkshire Hathaway – Can Buffett
Be Replaced? (6/7)
• One question that needs to be answered is
whether Berkshire Hathaway can successfully
replace Buffett (age 77), Munger (age 83), and
the board of directors (average age of 70)…?
Berkshire Hathaway – Can Buffett
Be Replaced? (7/7)
• Given its track record, the company is likely to
be successful in finding a new generation of
leadership that takes action based on the best
interest of employees, customers, and
shareholders, as long as Warren Buffett is
able to impart his special wisdom to the
process
Case Question
• The share price of Berkshire Hathaway has
never been split. Why might the company
refuse to split its shares to make them more
affordable to average investors?
Reference List
• GITMAN, L.J. ‘Principles of Managerial
Finance’ 2009
• www.berkshirehathaway.com
Lubica Belhadjova 吳筣雪
MA1N0212