Which of the following is true about Berkshire Hathaway?
a. As of December 31, 2014, Berkshire Hathaway’s diversified holdings included Amazon, BNSF, Walmart, and GEICO
b. None of these
c. In 1965, Buffett and partners gained control of Berkshire Hathaway as an investment in a successful financial institution.
d. Berkshire Hathaway was incorporated in 1889 as Berkshire Cotton Manufacturing and merged with Hathaway Manufacturing.
Which of the following is true about Berkshire Hathaway’s acquisition of PCP?
a. All of these
b. Purchased PCP at $22.50 per share in cash
c. Valued PCP’s enterprise value (market value of equity plus debt) at $45
d. Was the largest deal ever completed by Berkshire
Buffett’s motive for the PCP acquisition was most likely:
a. Margin expansion from a turnaround of PCP’s failing business strategy
b. All of these
c. Earning power derived from PCP’s oligopoly position in the aerospace parts market
d. New strategic direction by replacing PCP’s current CEO
1. a. As of December 31, 2014, Berkshire Hathaway’s diversified holdings included Amazon, BNSF, Walmart, and GEICO. (Answer)
1839- Berkshire Cotton- NOT a Financial Institution.
2.
D.Was the largest deal ever completed by Berkshire - About $38
billions @ $235 per share. (Answer)
3.
C. Earning power derived from PCP’s oligopoly position in the
aerospace parts market. (Answer)
It is it's a moat. It was brought at a P/E of 18.5
Which of the following is true about Berkshire Hathaway? a. As of December 31, 2014, Berkshire...
Which of the following hypothetical future acquisitions would best meet the Berkshire Hathaway acquisition criteria? a. A social media startup which is projected to be break-even pretax earnings in 2 years b. An auction for a tech company with new unproven technology financed with debt c. An auto parts manufacturer with $200-$250 mln of pretax earnings per year over the last 10 years d. Hostile takeover of a retail company with $500 mln of average pretax earnings over the last...