What Makes Warren Buffett Successful

The nineteenth century was a time of progress for the United States, a time when a free-enterprise economy ruled the industrial sector. It was also the time when one of the greatest entrepreneurs achieved dominance, Andrew Carnegie. A captain of industry, Carnegie built and ran his a steel company in Pennsylvania. The free enterprise system was both necessary and conducive to Andrew Carnegie's success. It gave him freedom to make his own economic decisions, such as where to work and how to treat workers.

1.-What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?  Specifically,  what does the $718 milllion gain in Berkshire´s market value of equity imply about the intrinsic value of GEICO? (Note that Berkshire owned 33.25 million shares before the acquisition was announced)

Bernard Madoff founded Bernard L. Madoff Investment Securities in 1960, with an investmento of only $5,000 earned as a beach lifeguard and a lawn sprinkler installer. He was seen as a genius and the most sympathetic and friendly broker in the country. Madoff became the responsible for the largest financial scam in history after applying the most jaded of financial scheme. A stroke of billions of dollars and harmed many customers. But after 20 years of this scam, he admitted having ridden a giant pyramid scheme type after being arrested. The scheme is to pay older clients with money from new investors, without producing real income. Madoff even became chairman of Nasdaq, the

Americans—all of these prominent businesspeople have become “the new CEOs” of Fortune 500 Companies between 1999 and 2011 (Zweigenhaft & Domhoff, 2011). The four most underrepresented groups within the corporate body enjoyed this dramatic increase in their representation in just a few decades, allowing Zweigenhaft and Domhoff, along with other prominent scholars, to study the newly

Here, the discussion should shift to an analysis of Berkshire’s general record, its experience with MidAmerican, and its experiences buying equity positions in the Big Four. The general conclusion will be that Buffett has done very well as an investor and as the manager of Berkshire.

Discuss Buffett’s analysis of the junk bond failures of the 1980s.What is Buffett’s view of the role to be played by investment bankers?

For those of you who don’t know, Warren Buffett is a businessman, an investor and a philanthropist. He is currently the second wealthiest man in America, and the fourth wealthiest man in the world. His net worth is $77 billion. Therefore, when Buffett does anything on the business front the world stands up and takes notice. Recently Buffett bought Apple stock, and people are wondering why he bought Apple, and not Google.

George Soros is one of an exclusive group of elite investors that includes Warren Buffett, Carl Icahn, Peter Lynch, William J. O’Neil, and Jack Bogle. He is a self-made billionaire with an estimated net worth of $24.9 billion, which ranks him as the 15th wealthiest person in the U.S. and the 23rd wealthiest person in the world. Soros overcame major obstacles during his teenage years to become one of the most successful businessmen in the world, and he has been able to use his wealth to fight for causes he believes in and influence U.S. politics.

Given the effect a CEO can have on a company's success, we can understand why their compensation packages

Media General is a mature company which has a lot of business including newspapers, television broadcasting and digital businesses primarily serving the southeastern U.S. (Over 18 TV stations and 64 newspapers). While because of the popular of Internet from the 2000s, more than 300 daily newspapers disappeared and daily circulation of newspapers fell to 44 million in 2011, the U.S. newspaper industry is dropping.

Detailed examination of the impact Jack Welch has had as CEO over the past twenty years reveals a leadership style that is the driving force behind a

On May 24, 2005, Warren E. Buffett, the chairperson and chief executive officer (CEO) of Berkshire Hathaway Inc., announced that MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway, would acquire the electric utility PacifiCorp. In Buffett’s largest deal since 1998, and the second largest of his entire career, MidAmerican would purchase PacifiCorp from its parent, Scottish Power plc, for $5.1 billion in cash and $4.3 billion in liabilities and preferred stock. “The energy sector has long interested us, and this is the right fit,” Buffett said. At the announcement, Berkshire Hathaway’s Class A shares closed up 2.4% for the day, for a gain in market value of $2.55

Warren Buffett utilizes a constant strategy to manage these companies including Berkshire Hathaway by holding shares for a long time. Berkshire Hathaway does not pay any dividends to the shareholders but reinvests surplus instead to maximize the value of the company. Under this strategy, each company is growing constantly and some of them such as GIECO and Nebraska Furniture Mart are the major layer in the industry.

Jack Welch’s vision of what GE was possible of gave the company a vision for twenty years while he was the CEO and chairman. He states, “leaders make sure people not only see the vision, they live and breathe it.” (Winning, pg 67) He not only allowed for employees to stretch, but demanded it. In teaching workers to stretch Welch knew that workers “may fail. In fact, they probably will fail. But stretching, and stretching the business, is going to improve performance results.” (Jack Welch on Leadership, pg 105) He also states that “only by setting the performance bar high did it become possible to discover people’s capabilities.” Jack Welch’s emphasis on candor and breaking the bureaucracy of modern business separated him from his contemporaries. He excited others of the possibility of being the biggest and best company in the world and rewarding his best employees that shared the values of GE. According to FORTUNE Editorial Director Geoffrey Colvin In "The Ultimate Manager, Welch leads the annals of management history not for anticipating the new world's changes ahead, but for acting on them: "His great achievement is that having seen it, he faced up to the huge, painful changes it demanded, and made them faster and more emphatically than anyone else in business. He led managers into this new world, which we still inhabit, and just as important, he showed business

Nevertheless if companies operate in weak markets and fail to create growth and profit the concept of maximization of shareholder wealth is also an opportunity for self-regulation and security against threats for a company. This approach is in particular useful for safeguarding against difficulties arising from wrong or misguided leadership within a corporation. Shareholders of a company have the strongest interest in a company’s success because they often invest a lot of capital in the business and require revenues for their deposit (Moore, 2002). As a matter of fact, they become more