Warren Buffett

4. What are the advantages and disadvantages of the 1987 buyout, viewed as a financial program?

Whew, where to start? The personal finance class through Dame Ramsey’s Foundations in Personal Finance textbook and video series really had a lot of useful information, and it is hard to pick out the most impactful chapters and topics. However, I think the most important stuff for me was his five foundations for financial success, which were reinforced throughout the course. I am not downplaying the other important stuff in the course, including learning about the history of credit, budgeting, consumer awareness, investing, insurance, and taxes, but I think that mastering the fundamentals is important, which is why I am choosing to highlight them in this paper.

1. Discuss the nature of stock as an investment. Do most stockholders play large roles in the management of the firms in which they invest? Why or Why not?

Buffett challenges the conventional wisdom regarding diversification. He argues that holding a few good stocks is far more important than spreading funds across a broad number of stocks. It is a fact that investors have been so oversold on diversification that the fear of having too many eggs in one basket has caused them to invest very little into companies about which they thoroughly know and far too much into others about which they know nothing at all. It is a dangerous thing to do as buying a company without sufficient knowledge may turn out to be even more dangerous than having adequate diversification.

Chapter seven: What does the efficient market theory have to do with Financial markets? Discuss the positives and negatives of the theory. Why do Wall-Street types not like it? Explain the coin flipping experiment, as it relates to investment diversification.

Many of the concepts that were discussed in Chapter 1 such as opportunity cost as well as some (much) newer ideas such as marginal and total utility. There are many examples of this such as when discussing the affects of Hospitality hours (happy hour) on the amount of drinks and the rate at which people consume their drinks (lower prices and quantity demanded) or the price at which people are willing to buy a cookbook relative to the profit the writer makes and how the current price was beneficial to both parties (equilibrium price). Ultimately I quite enjoyed the story and regret not getting it earlier as having it would of given context to a lot of concepts that normally seem alien to the average person that does not have business ties. This is of course in addition to the amusing and witty story thus making the 0.01 cents plus 3.99 shipping and handling a real steal for

In September 2008, optimistic about BYD’s application of new energy, Warren Buffett acquired 225 million (10%) of its shares at HK$ 8 per share.

According to our calculations Cooper Copper has an optimum bargaining position because they can offer up to $60.13 (at a 4% growth estimated rate) for it’s the stock in order to acquire the majority its shares. Porter 's offer of $42.00 per share failed to get the majority of shares need to acquire control. VLN 's offered to honor the price of $53.10 for preferred shares. This is the share value that speculators and stockholders would hope to obtain although the actual offer could end up to be much less. According to our calculations and analysis the best possible offer Copper can offer up to $60.13 (at a 4% growth estimated rate) per share for Nicholson stock.

It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently makes perfect sense. After thorough examination, my analysis proves that Costco remains one of the industry’s leading competitors and there seems to be no reason for Torres to sell her shares as long as she wishes to retain holdings of a retail wholesale club in her portfolio.

Primarily, I have been a huge Warren Buffet fan ever since I began investing back in 2008. I fell into the trap of countless of people that follow Mr. Buffet and monitor his every move in the stock market. Consequently, I have read several books with the goal to find out what made him so successful throughout the years and once I figured it out, it made since why there are literally thousands of people that follow Mr.

The fifth sentence would be how much value we should use for the risk and discount rate. Buffett asserted that his investment is with certainty. Therefore, he used the rate of 30-year US Treasury bond as a discount rate. By all means, this would be wrong according to the academic study that says all investments have difference degrees of risks but if he can be definitely sure that his investment is analogous to be risk-free, it might be possible that this rate is till appropriate.

Warren Edward Buffett is an American business magnate, investor and philanthropist. He is the most successful investor in the world. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and is consistently ranked among the world 's wealthiest people. He was ranked as the world 's wealthiest person in 2008 and as the third wealthiest in 2015. In 2012 Time named Buffett one of the world 's most influential people.

What were Buffett’s probable motives in the acquisition? What did Buffett’s offer say about his valuation of PacifiCorp, and how would it compare with valuations for other regulated utilities? Would Berkshire’s acquisition of PacifiCorp prove to be a success? How would Buffett define success?

Another thing I liked about the book was in certain areas the discussion tied back to what I am currently working with on our StockTrak assignment specifically, the topes of options and dividends. Bernstein told the story of how in 1973 Fischer Black and Myron Scholes created an options pricing model and tried to have their work published. Although their work wasn’t accepted because neither Black nor Scholes had advanced degrees, their work went on to become very instrumental in options pricing and liabilities. With relation to dividends Bernstein explained how both investors and corporations would make more money if instead of paying dividends corporations used that money to repurchase outstanding shares of stock.

Buffet believes that a successful investor needs to have discipline when walking into the stock market and invest in the different types of businesses that he feels has excellent business economics and can expand. He invest in companies that has intrinsic value, the projected return annually. Since the market has