Berkshire Hathaway Analysis

Paper Summary:

This paper analyzes Berkshire Hathaway Inc. It provides an overview of the company and discusses its financial status, recent allocation of profits and corporate performance over the last five years. It discusses the company's capital structure, areas of business and multiple stock classes. The paper then discusses the ownership structure and investors of the business.

Table of Contents:
Berkshire Hathaway Overview
How Berkshire Hathaway Makes Money
Financial Status, Recent Allocation Of Profits And Corporate Performance Over The Last Five Years
Berkshire Leverage And Capital Structure
Areas Of Business And Respective Profits
Multiple Stock Classes
Ownership Structure Of Berkshire Hathaway
Return To Investors
Key Personnel/Managers Of The Business
Risks Of The Firm That Could Lead To Material Change In Performance

From the Paper:

"Warren Buffett is 77 years old and plays a crucial role in Berkshire Hathaway - he allocates all Berkshire's 127 billion dollars. He is the figurehead for the company who exudes a sense of stability and dictates company culture. His age is of concern although he is in good overall health. No one has quite been able to replicate him even though many have tried. He will be a very difficult person to replace. Upon Warren's death, his job will be split into two parts with one executive becoming responsible for investments and the other who will be CEO in charge of operations. Charlie Munger is 83 years old and in worse health condition than Warren. Charlie will also be a difficult member to replace."

Sample of Sources Used:

• "Annual Report", Berkshire Hathaway Inc. 2006 Annual Report. http://www.berkshirehathaway.com/2006ar/2006ar.pdf, 2007.
• "An Owners Manual", http://www.berkshirehathaway.com/owners.html, January 1999.
• "Berkshire Hathaway", http://en.wikipedia.org/wiki/Berkshire_Hathaway, 2007.
• "Memo", http://www.berkshirehathaway.com/compab.html, July 3, 2003.
• Reuters. "Berkshire Hathaway Inc. (BRK.A)". 18 September 2007.

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