Abstract The Buffett investment strategy is for individuals looking for relatively low-risk investments. But, low risk is not enough. Warren Buffett has been said to be a strong believer in the stock market and therefore does not put money in low risk and low return investment vehicles like savings bonds. The key is to avoid low return investment options. This paper examines six random stocks of which two are listed on the Singapore Exchange, two on the Hong Kong Stock Market and two from the NASDAQ. Once chosen, the stocks are evaluated against the author's perception of the Warren Buffett investment strategy. The summary of each stock includes company background information, their industry overview, a five year stock history when available, a calculated return on equity, the PE ratio, the retained earnings and projected or forecast company plans. Based on this information, the stocks are evaluated to see if they would in fact be sound purchases based on the Buffett philosophy. The paper includes graphs.
From the Paper "One surprise regarding the Buffett philosophy for investing is that the investor need not require a portfolio with mass diversification in order to reduce risk. The approach focuses on only buying a relatively few stocks. One would think that such concentration of a portfolio that is without diversification should be considered risky. But Buffett seems to believe that thorough analysis of each company, patient purchasing at the lowest possible price and holding for the long-term will have weeded out the dogs. Warren Buffet is one of the richest men in America with probably only Bill Gates ahead of him in overall wealth. "So businessmen like Warren Buffett, Bill Gates, Jeff Bezos of Amazon.com, Michael Dell, the founder of Dell Computers, Bernard Marcus and Arthur Blank of Home Depot, and mutual fund manager Michael Price have been lionized in the press. Each became a billionaire, or near billionaire, in the 1990s." (Gross, 2000)"
Abstract This paper is a book report on "The Warren Buffett Way" by Robert G. Hagstrom Jr., in which the author sets out to analyze Warren Buffett's investment strategies. The paper attempts to show why Buffett has been successful and perhaps how others can emulate him to the same end. The paper discusses Buffett's investment strategy from observations of his behavior over a period of ten years.
From the Paper "Warren Buffett is a financier rather well-known because of his many pronouncements on financial issues and also because of the many companies he has headed or guided in some way. In the book on Buffett by Robert G. Hagstrom Jr., the author says in the subtitle that Buffett is the "World's Greatest Investor," and the author then sets out to analyze Buffett's investment strategies and to show why he has been successful and perhaps how others can emulate him to the same end. Such an effort is ongoing in the investment world in any case as other investors try to follow Buffett's lead and to get ahead of the curve instead of remaining behind it. Hagstrom notes that he knows Buffett but did not consult him during the writing of this book."
Abstract In this article, the writer points out that Warren Buffett is an acknowledged leader in business and investing. The writer explains that Buffet has worked at Berkshire Hathaway for nearly five decades and led it to great, even astounding, success. The writer notes that his ultimate philosophy that customers should conduct themselves like owners of the company, forms the backbone of his ideology and ultimately his success. The writer notes that Buffett's success has led others to emulate his business model, some of which is described in the book 'The Real Warren Buffett'. The writer concludes that other managers, no matter what industry they serve, would do well to follow Buffett's models and methods.
From the Paper "Warren Buffett developed his role as a manager in the 1960s, after he had already spent 20 years as a successful stockbroker. Buffett believed to be a successful manager he should treat the business as his own, even if he was not the owner. He knew to do this; the ideas of management would have to change to reach this goal. He also knew he had to choose the right investments that would over the greatest gain and the least risk, just as if he were using his own money to invest. He decided to create a guarantee that assured his shareholders that their money would be returned to them if he could not give them a higher return than they could earn somewhere else. He also knew the people he managed would have to adhere to the same goals."
Abstract The paper utilizes J.M Kouzes and B.Z. Posner's framework of leadership to consider the leadership qualities and leadership style of Warren Buffett of Berkshire Hathaway and other corporations. The paper describes Buffett's childhood and entry into the business world. The paper explains Buffett's methods and his philosophy of how to value an investment.
From the Paper "Buffett was born in 1930. As a child, Buffett already showed himself to be ambitious--he was an enthusiastic and industrious paper boy for the Washington Post, trying to cover more than one route at the same time, and he also made money by collecting and selling lost golf balls. His interest in finance was also apparent extremely early in his life when he started playing the stock market with one of his sisters when he was eleven. When he was twelve, he was betting on horses, and by high school he had started a business (pinball machines) with a friend, a business which earned him fifty dollars a week. By graduation, he not only owned his own business, but he also had purchased forty acres of Nebraskan farm land with his profits."
Abstract The paper presents Buffett as the greatest stock market investor of modern times. It discusses his inspirational leadership style and shows his advantage in terms of investments, but states the advantage is not as effective for management.
From the Paper "Warren Buffett is regarded as the greatest stock market investor of modern times. Today, Warren Buffett is the chairman of a long.term investment company which has more than $2 billion in holdings. His method of analysis, his investment philosophy, and ..."
Abstract Berkshire Hathaway is one of the most interesting cases of successful investments. Under the inspirational leadership of Warren Buffett, the company's evolution is a great object of study for both scholars and investors. This paper explores the key points in Berkshire's history, Buffett's influence, how the company's structure was built, what is its current financial status and whether an investor should consider buying its stock.
From the Paper "In a 1999 article from Business Week, Warren Buffett, the force behind the Berkshire Hathaway Business, was described as follows: "If Buffett had a business card, it would identify him as chairman and chief executive of Berkshire Hathaway Inc. But he is far better known--indeed, world-famous--as the greatest stock market investor of modern times. The figures, though often cited, still astound: Had you put $10,000 into Berkshire when Buffett bought control of it in 1965, you'd have $51 million now, vs. just $497,431 if the money were invested in the Standard & Poor's 500-stock index." "
From the Paper "Introduction
Warren Buffett is one of the wealthiest Americans today, but gained that wealth through investing, not through running a company which produces a product or service for sale to others. Buffett's company, Berkshire Hathaway, is the most expensive stock traded on the New York Stock Exchange, and his company's performance mirrors his own personal success. Buffett counts other wealthy Americans, including Bill Gates of Microsoft, among his close friends, but has chosen not to publish books on his investment strategy. The annual reports of Berkshire Hathaway are replete with information about the company's activities, and others have analyzed his strategy and noted his published comments from interviews. His success has generated considerable interest in his methods. In 1997, his daughter-in-law, Mary Buffett, published Buffett.."
A review of the the biographical books, "A Walk in the Woods: Rediscovering America on the Appalachian Trail" by Bill Bryson and "A Pirate Looks at Fifty" by Jimmy Buffett.
1,150 words (approx. 4.6 pages), 4 sources, 2002, $ 44.95
Abstract This paper will discuss two autobiographical memoirs and discover how they convey a story and philosophy from the author. The books analyzed will be, "A Walk in the Woods: Rediscovering America on the Appalachian Trail" by Bill Bryson and "A Pirate Looks at Fifty" by Jimmy Buffett. The texts will point out the certain qualities that make up a story and philosophy from these authors.
Abstract In late May, 1998, Microsoft founder and CEO Bill Gates (the richest businessman in the world) and Warren Buffett, chairman of Berkshire Hathaway Inc. (the richest investor in the world) gave a special speech (to be aired by PBS this fall) about competition in American business in general and the computer industry in specific.
From the Paper "Microsoft and the Anti Trust Issue
Introduction
In late May, 1998, Microsoft founder and CEO Bill Gates (the richest businessman in the world) and Warren Buffett, chairman of Berkshire Hathaway Inc. (the richest investor in the world) gave a special speech (to be aired by PBS this fall) about competition in American business in general and the computer industry in specific. At one point, the moderator asked what was the appropriate role for antitrust law in American business? Gates answered that the essential role of competition law is to "protect consumers and to make sure that new products get created and that those products are very innovative" (Schlender, Buffett & Gates, 1998, 48). From Gates' point of view, there were serious antitrust violations in the computer industry before ..."
Abstract This paper examines how Warren Buffett, known as the 'Oracle' or the 'Sage of Omaha,' is generally considered to be one of the world's most successful investors. It looks at how Berkshire Hathaway, the company he used as an investment vehicle, is now legendary for its achievements and explores some of his investment principles.
From the Paper "The second role Berkshire Hathaway played was extremely important for Buffett's success. In 1967 he turned his attention towards the insurance business and purchased two Nebraska companies, National Indemnity and National Fire and Marine Insurance. The insurance business was risky, under permanent competition stress and in constant need of excellent management. Buffett was coming from a traditional sector of the economy, textiles, but the new challenge proved to be exactly what he had needed. The new opportunity gave him the chance to put his full potential to the test and to apply all the investment strategies that have made him famous."
Abstract 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."
Abstract The paper examines the work "How to Think Like Benjamin Graham and Invest Like Warren Buffet" and explains Cunningham's arguments and positions. The paper notes some shortcomings in this book, but is of the opinion that this book is an excellent introduction to the investment theories that defined the careers of Warren Buffett and Benjamin Graham. The paper adds that academic or more knowledgeable readers may find Cunningham's support for his arguments a bit wanting.
From the Paper "Lawrence's Cunningham's treatise on investing was, to be frank, a bit unexpected. How to Think Like Benjamin Graham and Invest Like Warren Buffett is an extension of the theoretical (and practical) work on investing and economics that both Benjamin Graham and Warren Buffett engaged in. Cunningham, quite correctly, considers himself a student of these two men and works in this book to extend their theories and positions on market economies and investing to the modern investor."
