Berkshire Hathaway Base Case
Berkshire Hathaway Base Case Headquarters: 1440 Kiewit Plaza, Omaha, NE 68131Business: A collection of companies in businesses as diverse as insurance, underwear, ice cream, bricks, jewelry, flight services and encyclopedias. More than half of revenue is from insurance. Chairman and CEO: Warren Buffett Chief information officer: No such position. Financials in 2002: $42.4 billion in revenue; $4.3 billion profit; EPS $2,795. Challenge: Buffett has built an empire buying good companies, with great management, at a fair price. Berkshire now must strike megadeals to make any sizable impact on earnings. Baseline Goals:
Grow stock price 10% a year greater than the Standard & Poors 500.
Redeploy each dollar of retained earnings into a dollar of new business or investment.
Act as example for corporate America in executive compensation and accounting for financial results. Buffetts salary: $100,000 a year.
Give personal fortune of chairman (currently calculated at $30.5 billion) to charity, upon
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