Assessment of Buffett: It would be a great thrill to meet arren Buffett; in fact it would be the opportunity of a lifetime to take a digital recording device and just chat with him for 15 or 20 minutes. An article in Research Technology Management (Bloomquist 1996) reports that one of the criteria Buffett looks at when considering investing in a company is that organization's commitment to "candor." Buffett is intolerant of managers who spice up their reports because those individuals are "serving perhaps their own interests in the short-term but no one's interest in the long run" (Bloomquist). Indeed, Buffett has stood the test of the "long run" and remains among the most respected Americans. He has been a force for good, a force for honesty and smart investments. And the fact that he is donating billions to worthy causes that desperately need financial support says a lot more…...
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Works Cited
Bloomquist, Lee G. "Learn from Warren Buffett's 'way'." Research Technology Management,
I believe that I possess these characteristics. This is because I come from a background that taught me to be self-sufficient, overcome the challenges I am facing and making decisions that will help to change society for the better.
Another reason why I admire Warren Buffett is from his ability to support causes and ideas which will benefit society as a whole. Evidence of this can be seen with Buffett's views on wealth with him saying, "I don't have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. it's like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the…...
Warren Buffett as an entrepreneur is a vexing case as many people view him as a hero of entrepreneurship while others view him as an example of entrepreneurship run amok and/or as a man that engages in behaviors and tactics that run extremely counter to the proper characteristics of entrepreneurship. This report will cover all of that and more. Some introspection towards of the author of this report will cover as well.
Criticism & eview of Warren Buffett
No one can deny the impacts that Warren Buffett has had on the fields of business and entrepreneurship. However, other people greatly debate and even condemn the perception of how Warren Buffett has reached the heights he has gotten to. Warren's penchant for being a savvy investor that snags upstart companies and turns them into powerful organizations is viewed as opportunistic by some and some view Buffett as an…...
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References
Bang, A, Cleemann, C, & Bramming, P 2010, 'How to create business value in the knowledge economy: Accelerating thoughts of Peter F. Drucker', Management
Decision, 48, 4, pp. 616-627, Business Source Premier, EBSCOhost, viewed 23
March 2013.
Byrne, J.A. 2012, 'The 12 Greatest Entrepreneurs of Our Time & What You
Buffett is always looking for consistency. He does not like organizations that gain a lot in some years and lose even more in others. He looks for a history of steadily increasing earnings, which indicate that the particular company is well and carefully managed. Buffett would consider the evolution on the eturn on Equity and eturn on Capital ratios in order to determine how the company has performed in the past. In 1977, he said that 'Since businesses customarily add from year to their equity base, we find nothing particularly noteworthy in a management performance combining, say, a 10% increase in equity capital and a 5% increase in earnings per share.'
Buffett does not like debt, especially in the form of long-term debt, so he will not invest in companies with such characteristics. Long-term debt means that any increase in the interest-rate could seriously affect the company's profits and make future…...
He is a strong proponent of improved corporate governance and his record of transparency shows that he holds himself to the same high standards.
The most surprising thing about Buffett's leadership style is its simplicity. He ascribes to no complicated methods or models. He has distilled life down to basic wisdom and uncomplicated axioms. He ascribes much of his success to doing what he loves and being a good person that others like.
He has also emerged as a leader of leaders. Among Buffett's investment criteria is strong leadership. He views leadership as an integral part of success in this world, and ensures that each of his companies is equipped with great leadership talent. He bucks the all Street trend of firing leaders who fail to deliver short-term results, preferring to build his investments over the long-term (George, 2006).
hat I learned about arren Buffett is that leadership need not be complicated.…...
Warren Buffett's perspective, what is the intrinsic value? Why is it accorded such importance? How is it estimated? What are the alternatives to intrinsic value? Why does Buffett reject them?
Intrinsic value is concisely summed up by Warren Buffett as "the present value of future expected performance" (Bruner, Eades, & Schill, 2009). This intrinsic value can summarize how well a company is run, its cash flow and places a premium on management competency. Intrinsic value is thought to be important in value investing as it allows Buffett to identify stocks or businesses which are undervalued. This is important because value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value (Intrinsic Value, 2012).
Buffett readily admits that intrinsic value is highly subjective (Bruner et al., 2009). Buffett's method…...
Leadership
Warren Buffett, a leading investor, is admired for many things. While some admire his investment capabilities, some are awed by the frugal lifestyle he lives despite being one of the richest men in the world. I admire both his business acumen and leadership style. In that regard, I have in the past read a significant number of articles and watched quite a number of documentaries regarding how he manages one of the most diversified investment firms in the world -- Berkshire Hathaway. Buffett is currently the C.E.O and chairman of the company. With so many subsidiaries to watch over, Buffett's approach to leadership must be really unique. Buffett's approach to leadership is a manifestation of 'Level 3' leadership.
True to one of the basic tenets of Level Three Leadership, Mr. Buffett has over time managed to influence not only the values but also the minds and hearts of his followers (both…...
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References
Clawson, J.G. (2012). Level Three Leadership: Getting Below the Surface (5th ed.). New Jersey: Prentice Hall.
Annotated Bibliography- For the annotated bibliography you should write approximately one paragraph on each source, explaining what the source is, where it is from, and what it contributes to your research1. Acharya, Viral V., and Lasse Heje Pedersen, 2005, Asset Pricing with Liquidity Risk, Journal of Financial Economics 77(2), 375410This journal articles comes from the Journal of Financial Economics and discusses many of the value investing principles that have made Warren Buffett one of the worlds greatest investors. The book describes value techniques that Warren Buffett and his partner Charlie Munger have used throughout their careers. This will contribute to my research as it details the elements that have made Warren Buffett popular within the worlds financial communities.2. Buffett, Mary; Clark, David (1999). Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor. Scribner. ISBN 978-0-684-84821-1The textbook further describes the valuation process used by Warren…...
Warren Buffett is widely regarding as one of the greatest investors of all-time. As the chairman of Berkshire Hathaway, he commands an empire that encompasses railroads, candy, homebuilders, and underwear. His company now has a market cap of over $ billion and is widely considered one of the best run companies in the world. Every year, Warren holds his annual shareholder meeting in Omaha, Nebraska. Here over 100,000 participants fly from around the world to listen to Warren Buffetts advice. During this over 6 hour sessions, participants ask a litany of questions that range from investment advice to life advice. Much of this advice is almost always posted on prominent financial websites and publications.Warren Buffett was born in Omaha, Nebraska in 1930. He developed an early interest in investing through his father, who was a stock broker and an eventual congressman. Warren often read books in the public library related…...
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References1. Robert G. Hagstrom, Jr.. The Warren Buffett Way: Investment Strategies of the World\\\\\\\\\\\\\\\'s Greatest Investor. New York: John Wiley & Sons. 1994. 274pp.2. Robert Heller. Warren Buffett. New York: Dorling Kindersley. 2000. 112pp.3. Andrew Kilpatrick. Warren Buffett: The Good Guy of Wall Street. Donald I. Fine. 1995. 304pp.4. Andrew Kilpatrick. Of Permanent Value: The Story of Warren Buffett. Andy Kilpatrick Publishing Empire. 1996. 730pp.5. Roger Lowenstein. Buffett: The Making of an American Capitalist. New York: Random House. 1995. 473pp.6. A. M. Panrolling. Warren Buffett: An Illustrated Biography of the World\\\\\\\\\\\\\\\'s Most Succesful Investor. John Wiley & Sons. 2004.
Warren E. Buffett, 1995
There are several assumptions Warren Buffett might have made when he purchased GEICO. He is famed for saying that acquiring executives think of themselves as beautiful princesses whose kisses will turn 'frogs' -- underperforming companies -- into handsome princes. Believing they can "release the imprisoned princes" (Hambrick & Hayward, 1997, p. 103+). He also said that he'd observed many kisses but very few miracles.
Why, then, might he have bought GEICO, a company admittedly perking along just fine without him, especially considering the acquisition premiums. In view of the increase in share price, it is likely Buffett was relying on the target's pre-existing stock price inadequately reflecting the value of the firm's resources and its prospects. This has been called hubris by some analysts, but it is hubris only if it fails. In the case of Buffett, it did not fail.
In fact, Buffett may have been operating from…...
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References
Colvin, G. (1992, June 1) Champion pay for a nonchamp CEO. Fortune. Retrieved October 9, 2005 from www.highbeam.com.
Hambrick, D.C. And M.L.A. Hayward. (1997) Explaining the Premiums Paid for Large Acquisitions: Evidence of CEO Hubris, Administrative Science Quarterly, 42 (1), 103+. Retrieved October 9, 2005 from www.questia.com.
Henry, J. (1998, November). Buffett in Buffalo, Columbia Journalism Review, p. 58. Retrieved October 9, 2005 from www.questia.com.
How Buffett cleaned up Salomon. (1994, June 20) U.S. News & World Report. Retrieved October 9, 2005 from www.highbeam.com.
As Cline points out, Buffet resembles Bill Gates who when asked about Christianity said that he is not a believer and does not attend church regularly, but finds the moral teachers of Christianity useful and inspiring (Cline 2006). Is this so bad? Both of them can teach most people about the need to work, save money and then give back to the society that nurtured them.
This seeming dispute between faith and reason is hardly new and is an illusion that is easily dispelled. After all, Christianity did not come out of a box with Luther's theses in 1517. The seeds had already been planted in the High Middle Ages/Early Renaissance as learning revived in the wake of the Crusades. This cultural awakening of the High Middle Ages raised issues that scholars such as the great Thomas Aquinas wrestled with in his classical Summa Contra Gentiles and Summa Theologica. He held…...
Charitable Contributions and Tax Benefits
Unfortunately, much of the elite of the upper class are afforded leeway and loopholes on tax obligations that allow them to pay much less percentage wise than other taxpayers in different income brackets. Much of this is due to the ability to use tax deductions, like charitable contributions in large amounts, to lower their annual personal incomes before taxes. However, many of the top contributors to charity donate above the maximum allowances for charitable deductions, showing a clear resolution to give based on ethics, rather than for the sole purpose of tax deductions alone,
Bill Gates is currently one of the top money makers in the world, yet he is also one of the largest contributors to charitable institutions as well. The amounts of donations Bill Gates contributes to various charities, including his own charitable foundation, is well over the top end limit of what is allowed…...
Roger Lowenstein's Buffett: The Making of an American Capitalist which is the biography of arren Buffett. In addition to the actuarial math (of which Buffett is a master), the book is unique among biographies because it spells out the various qualities that have made Buffett such an adroit investor.
However, in the opinion of this author, the best quality that he manifested is the quality any good investor must have, which is to go long. hile Buffett has a number of remarkable abilities, including a veritable inexhaustible appetite for numbers and a photographic memory, many people do not have these and still become rich. The thing that Buffett shares with so many investors is this ability to invest for the long-term. In short, he is not a day trader. Rather, he is investing in businesses that he has made a commitment to. He wants to see them grow and is…...
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Works Cited
Lowenstein, R. (1996). Buffett: The Making of An American Capitalist. New York, NY: Broadway
In fact, Lampert is cited as still frequently drawing his top picks from consulting the shareholder letters of Buffet, and drawing from Buffet's advice to guide him in his own investment decisions.
arren Buffet is famed as the billionaire chairman of Berkshire Hathaway Inc. Like Buffett, Lampert is said to seek investments in "stable businesses with predictable income streams that have very strong brands," that are currently suffering troubled fortunes but are not fundamentally misguided in their core brand concepts (eiss, & DiStefa 2007). For example, in his own investment strategies, Buffet resisted the dot.com boom and bust, by and large, and so did Lampert. Buffet prefers companies that are traditional blue chips that produce products you can see, touch, and can count upon to build a customer base steadily, over time.
Likewise, Lampert has staked his reputation upon companies such as Kmart and Citigroup, amongst others, which were experiencing difficulty…...
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 aims at pointing out 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.
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…...
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Reference:
1.Mergent online financial information service www.mergent.com
2. Gale online financial information service www.hoovers.com
3. Bianco, Anthony, "Warren the Buffett You Don'tknow; Ace stockpicker, of course -- and now, an empire-builder" Business Week. New York: July 5, 1999., Iss. 3636; pg. 54
4. Berkshire Hathaway's history -- part 1 and 2
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