DOCSLIB.ORG

Berkshire's Sokol Quits After Lubrizol Share

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Berkshire's Sokol Quits After Lubrizol Share 3/30/2011 Berkshire's Sokol Quits After Lubrizol S… More New s, Quotes, Companies, Videos SEARCH Wednesday, March 30, 2011 As of 6:17 PM EDT New Y ork 47º |33º MARKETS Welcome, Robert A Miller Logout My Account My Journal Help Message Center (undefined new ) U.S. Edition Home Today's Paper Video Blogs Journal Community Upgrade to WSJ Pro: Get 4 Weeks Free World U.S. New York Business Markets Tech Personal Finance Life & Culture Opinion Careers Real Estate Small Business Wall Street Heard on the Street Market Data Stocks Mutual Funds & ETFs Bonds Commodities Currencies World Markets MarketWatch.com 10 of 12 11 of 12 12 of 12 1 of 12 TOP STORIES IN rkshire's Sokol Is That a Bear or a Apollo Global Slips Dow Aims to Notch Sea uitsMarkets After Bull in the Corn ... in NYSE Debut Quarterly Win Gr ubrizo... Again Lea MARKETS MARCH 30, 2011, 6:17 P.M. ET Berkshire's Sokol Quits After Lubrizol Purchases Article Documents Stock Quotes Comments (6) MORE IN MARKETS MAIN » Email Pr int Save This Like 7 + More Text By ERIK HOLM David Sokol, long considered by outsiders to be the most likely candidate to succeed Warren Buffett, resigned from Berkshire Hathaway Inc. after purchasing shares of a company he suggested Mr. Buffett buy. Mr. Buffett, Berkshire's chief executive and chairman, said in a statement Wednesday that Mr. Sokol had told him he owned shares in the chemical company, Lubrizol Corp., when they first discussed the deal in January. Mr. Buffett said "neither Dave nor I feel his Lubrizol purchases were in any way unlawful" and weren't a factor in his decision to resign. View Full Image Instead, Mr. Buffett said Mr. Sokol wrote in a Bloomberg News letter of resignation on March 28 that he David Sokol spoke to shareholders prior to the wanted to "invest my family's resources in Berkshire Hathaw ay annual meeting in Omaha, Neb., Most Popular in Markets on May 1, 2010. such a way as to create enduring equity value Dow Aims to Notch Quarterly Win Again and hopefully an enterprise which will provide opportunity for my descendents and funding Jailed 'Insider' Suspect Is Exception for my philanthropic interests." Bankruptcy Threatens Alabama County Mr. Sokol purchased 2,300 shares of Lubrizol Will Barclay s Turn Its Back on Britain? on Dec. 14, which he then sold on Dec. 21, GE Seals $3.2 Billion Power Deal Mr. Buffett said. He then bought 96,060 shares in early January with an order to pay no more than $104 a share. Vote and Discuss View Full Image Berkshire said March 14 that it had agreed to Are investors mispricing risk? Bloomberg News acquire Lubrizol for $9 billion, or $135 a Yes Warren Buffett listened during a new s conference in share. New Delhi, India, on March 24. No "Dave's purchases were made before he had discussed Lubrizol with me and with no View Results » Read the Berkshire Hathaway Press knowledge of how I might react to his idea," Release Mr. Buffett wrote in the statement. Mr. Buffett Email Newsletters and Alerts said he learned of the extent of the stock purchases shortly before beginning a trip to The latest news and analysis delivered to your in-box. Check the Asia on March 19. boxes below to sign up. Markets Alert Deals Alert A regulatory filing detailing the Lubrizol purchase indicated last week that Mr. Sokol Heard on the Street Asian Markets identified Lubrizol as a potential acquisition European Markets Price & Volume Alerts and took the lead in early negotiations to buy the company. Mr. Sokol plucked Lubrizol from View Document SIGN UP a list of 18 chemical companies that bankers …wsj.com/…/SB100014240527487037… 1/3 3/30/2011 Berkshire's Sokol Quits After Lubrizol S… at Citigroup Global Markets had compiled in New! To sign up for Keyword or To view or change all of your Buffett on Sokol December 2010 as possible acquisitions at Symbol Alerts click here. email settings, visit the Email Mr. Sokol's request, according to the filing. Setup Center. Mr. Sokol met with Lubrizol's chief executive, James Hambrick, in January to discuss the Video corporate culture at the two companies, and told him a Berkshire takeover offer would be contingent on Mr. Hambrick's agreeing to stay on as CEO. It was after Mr. Hambrick and his board had agreed to move forward with takeover talks that Mr. Buffett took the PM Report: Sm all News Hub: Ma r ket s Hu b: Cap St ocks Hit 3- Ma n power Gr ou p St ocks Brea k Ou t David Yellen lead, the filing said. 1/2 Year High CEO on t h e 5:28 13:47 Return of Jobs 4:25 Read a collection of Buffett's comments about Mr. Sokol "knew he would have no voice in Sokol over the years Berkshire's decision once he suggested the idea; it would be up to me and [Berkshire Most Popular Vice Chairman] Charlie Munger, subject to ratification by the Berkshire Board of which Dave is Read Emailed Video Commented Searches not a member," Mr. Buffett said in the statement. "As late as January 24, I sent Dave a short note indicating my skepticism about making an offer 1. Microsoft Co-Founder Hits Out at Gates for Lubrizol and my preference for another substantial acquisition for which MidAmerican had made a bid. Only after Dave reported on the January 25 dinner conversation with James 2. Obama to Speak on Energy Policy Hambrick did I get interested in the acquisition of Lubrizol," Mr. Buffett wrote. 3. The Price of Taxing the Rich Mr. Buffett said Mr. Sokol had tried two other times in recent years to resign. 4. Amazon Beats Rivals Into the 'Cloud' Mr. Sokol had been chairman of Berkshire's MidAmerican utility operations and chairman and 5. In Japan, a Choice Between Bad, Worse CEO of its NetJets fractional plane business. Most Read Articles Feed In his statement Wednesday, Mr. Buffett said Mr. Sokol's "contributions have been extraordinary," citing his work at MidAmerican and NetJets, which he described as "an operation that was destined for bankruptcy, absent Berkshire's deep pockets." Latest Tweets Greg Abel, the chief executive of MidAmerican Holding Co., will become its chairman, Mr. Buffett said. Jordan Hansell, president of NetJets, will become its chairman and CEO. WSJDealJournal: Deal Journal: 'American Idol' Backer Robert Sillerman Launches New Media Venture http://bit.ly/eDTe4z Berkshire Hathaway Class B shares fell sharply in after-hours trade after the announcement. Moments ago Write to Erik Holm at [email protected] WSJHeard: A Spring In ArcelorMittal's Step http://on.wsj.com/fhIUMV Write to Erik Holm at [email protected] Moments ago More WSJMarkets: China's Rate Hike Weighs on Copper Deal Journal: Who Is David Sokol? http://on.wsj.com/idunpR Deal Journal: Buffett Lieutenant Resigns Amid Stock Purchases Moments ago Letter: From Buffett on Sokol's Resignation Earlier: Berkshire's Sokol Kicked Off Lubrizol Deal WSJMarkets: Shorter-Dated Treasurys Ease as Debt Sale Looms http://on.wsj.com/hahrtC MORE IN MARKETS MAIN Moments ago Email Printer Friendly Order Reprints WSJDealJournal: Deal Journal: Deals of the Day: The Pritzker Empire Nears Its End Share: http://bit.ly/eyPeO5 7 min ago Like 7 likes. Sign Up to see what your friends like. Follow WSJ on BlackBerry® Official Site Get the ultimate communication experience from BlackBerry. BlackBerry.com LEAKED: $25 Car Insurance Your Auto Insurer hates this. Car Insurance For Only $25! News7BreakingNews.com Car Insurance (EXPOSED) We investigated car insurance and what we found may shock you... www.news9consumer.com Will CPMCF Soar Higher? Find Out Crazy CPMCF Rumors Will CPMCF Fall or Soar? howtobuyhotpennystocks.com/CPMCF …wsj.com/…/SB100014240527487037… 2/3.
Load more

Recommended publications
  • 0001193125-17-134664.Pdf
    SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 SCHEDULE 13G (Rule 13d-102) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO § 240.13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO § 240.13d-2 (Amendment No. 1) LIBERTY MEDIA CORPORATION (Name of Issuer) SERIES A SIRIUSXM COMMON STOCK (Title of Class of Securities) 531229409 (CUSIP Number) April 19, 2017 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: ☐ Rule 13d-1 (b) ☒ Rule 13d-1 (c) ☐ Rule 13d-1 (d) * The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (the “Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes.) 1 NAME OF REPORTING PERSON Warren E. Buffett 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☒ (b) ☐ 3 SEC USE ONLY 4 CITIZENSHIP OR PLACE OF ORGANIZATION United States Citizen 5 SOLE VOTING POWER NONE NUMBER OF 6 SHARED VOTING POWER SHARES BENEFICIALLY OWNED BY 10,683,800 EACH 7 SOLE DISPOSITIVE POWER REPORTING PERSON WITH NONE 8 SHARED DISPOSITIVE POWER 10,683,800 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,683,800 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES ☐ Not Applicable.
    [Show full text]
  • The Competitive Advantages of Buffett & Munger Businesses by Bud
    Moats The Competitive Advantages Of Buffett & Munger Businesses By Bud Labitan Copyright © 2011 All rights reserved. Printed in the United States of America. No part of this book may be used or reproduced in any manner without permission. Chapters 1-5 / 70 Abridged version. A truly great business must have an enduring “moat” that protects excellent returns on invested capital. ~ Warren Buffett How do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it. ~ Charlie Munger Here is a 5 chapter preview of the new book called Moats. From: Bud Labitan and the Moats research team http://www.frips.com/book.htm Table of Contents INTRODUCTION CHAPTER 1: ACME BRICK COMPANY CHAPTER 2: AMERICAN EXPRESS CO. (AXP) CHAPTER 3: APPLIED UNDERWRITERS CHAPTER 4: BEN BRIDGE JEWELER CHAPTER 5: BENJAMIN MOORE & CO. CHAPTER 6: BERKSHIRE HATHAWAY GROUP CHAPTER 7: BERKSHIRE HATHAWAY HOMESTATE COMPANIES CHAPTER 8: BOATU.S. CHAPTER 9: BORSHEIMS FINE JEWELRY CHAPTER 10: BUFFALO NEWS CHAPTER 11: BURLINGTON NORTHERN SANTA FE CORP. CHAPTER 12: BUSINESS WIRE CHAPTER 13: BYD CHAPTER 14: CENTRAL STATES INDEMNITY COMPANY CHAPTER 15: CLAYTON HOMES CHAPTER 16: COCA COLA (KO) CHAPTER 17: CONOCOPHILLIPS (COP) CHAPTER 18: CORT BUSINESS SERVICES CHAPTER 19: COSTCO WHOLESALE (COST) CHAPTER 20: CTB INC. CHAPTER 21: FECHHEIMER BROTHERS COMPANY CHAPTER 22: FLIGHTSAFETY CHAPTER 23: FOREST RIVER CHAPTER 24: FRUIT OF THE LOOM® CHAPTER 25: GARAN INCORPORATED CHAPTER 26: GATEWAY UNDERWRITERS AGENCY CHAPTER 27: GEICO AUTO INSURANCE CHAPTER 28: GENERAL RE CHAPTER 29: H.H. BROWN SHOE GROUP CHAPTER 30: HELZBERG DIAMONDS CHAPTER 31: HOMESERVICES OF AMERICA CHAPTER 32: IBM CHAPTER 33: INTERNATIONAL DAIRY QUEEN, INC.
    [Show full text]
  • What Tech's Survivalist Billionaires Should Be
    WHAT TECH’S SURVIVALIST BILLIONAIRES SHOULD BE DOING INSTEAD COULD AMAZON'S JEFF BEZOS, THE WORLD'S SECOND RICHEST MAN, BE HUMANITY'S LAST HOPE? By IMD Professor Howard Yu IMD Chemin de Bellerive 23 PO Box 915, CH-1001 Lausanne Switzerland Tel: +41 21 618 01 11 Fax: +41 21 618 07 07 [email protected] www.imd.org Copyright © 2006-2017 IMD - International Institute for Management Development. All rights, including copyright, pertaining to the content of this website/publication/document are owned or controlled for these purposes by IMD, except when expressly stated otherwise. None of the materials provided on/in this website/publication/document may be used, reproduced or transmitted, in whole or in part, in any form or by any means, electronic or mechanical, including photocopying, recording or the use of any information storage and retrieval system, without permission in writing from IMD. To request such permission and for further inquiries, please contact IMD at [email protected]. Where it is stated that copyright to any part of the IMD website/publication/document is held by a third party, requests for permission to copy, modify, translate, publish or otherwise make available such part must be addressed directly to the third party concerned. WHAT TECH’S SURVIVALIST BILLIONAIRES SHOULD BE DOING INSTEAD | Could Amazon's Jeff Bezos, the world's second richest man, be humanity's last hope? Amazon’s CEO, Jeff Bezos, recently passed Warren Buffett to become the world’s second-richest person, behind only Bill Gates. And on Wednesday, Bezos revealed that he has been selling about $1 billion in Amazon.com AMZN +1.41% stock a year to fund space travel, with the commitment of flying paying customers as soon as 2018.
    [Show full text]
  • Warren Buffett: Good Morning and Welcome to Berkshire Hathaway
    BERKSHIRE HATHAWAY ANNUAL MEETING 2019 Edited Transcript provided by Yahoo Finance: Warren Buffett: Good morning and welcome to Berkshire Hathaway. For those of you who have come from out of state, welcome to Omaha. The city is delighted to have you here at this event. For those of you who came from outside of the country, welcome to the United States. So, we’ve got people here from all over the world. We’ve got some overflow rooms that are taking care of people. We will just have a few preliminaries and then we will move right into the Q&A period. We’ll break about noon for about an hour. We’ll come back and do more Q&A until about 3:30. Then we’ll adjourn for a few minutes, and then we’ll conduct the meeting. I understand that in the room adjacent, that Charlie has been conducting a little insurgency campaign. I don’t know whether you’ve seen these, but these are the buttons that are available for those of you who keep asking questions about succession. And Charlie wants to answer that question by getting your vote today. So this one says, “Maturity, experience, why accept second best? Vote for Charlie.” I, however, have appointed the monitors who collect the votes, so I feel very secure. Charlie is my partner of 60 years, a director and vice chairman, and we make the big decisions jointly. It’s just that we haven’t had any big decisions. So, we’re keeping him available for the next big one.
    [Show full text]
  • 2015 Woodstock of Capitalism
    SM What were your worst investments? WB: Holding on to the Berkshire Hathaway Textile Company for 18 years, thinking it would finally turn. It never did. After 18 years Warren closed Woodstock of Capitalism the company, which struggled because of low clothing prices and higher Berkshire Hathaway Annual Shareholders Meeting cotton prices. My second biggest mistake was paying $433 million for the Omaha, Nebraska - May, 2015 Dexter Shoe Company and using BH stock instead of cash to do it. Four years later, we closed the company. Today, that $433 million in BH stock James F. Marshall Jonathan Marshall is worth over $3 billion. President Senior Investment Analyst CM: It’s better to learn from other people’s mistakes than your own. For the tenth consecutive year, my brother Dave, Matt Demet and I joined Gary Vanden Heuvel, President of the BLC Community Bank and his son What impact will safety regulations, like tank car regulations, have on Casey and friend John Wiley, for our annual pilgrimage to Omaha. This Burlington Northern Railroad? year’s event marked the 50th Anniversary of Berkshire Hathaway with WB: The interest of Burlington Railroad, tank car manufacturers and leas- Warren Buffett (84), and Charlie Munger (91) at the helm. Fifty years ing operations might diverge in a few ways, but obviously we have an inter- ago Warren started with $105,000 of family money, today Berkshire Hatha- est in developing safer cars. Both rail and pipelines have their disad- way is worth $360 billion, the fourth largest company in the United States. vantages, but the railroad industry’s safety measures have improved year In 10 years, both Warren and Charlie appear to have not lost a step.
    [Show full text]
  • BRK AGM 2016.Pub
    May 2016 Berkshire Hathaway 2016 AGM Omaha, Nebraska Extraordinary Management, The Internet and Energy I had the privilege of travelling for the fourth time to the 2016 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska last week. The 2015 event was the 50th anniversary of the Warren Buffett / Charlie Munger “Profitable Partnership” at Berkshire Hathaway and the crowd at an estimated 44,000 was out of control. So this year the company invited Yahoo Finance to live-stream the meeting for the first time. Despite this, there was still a great sense of adventure and celebration at the meeting… without the unnecessary large crowds. We’d all come too far to miss out on a good seat, so the day started at 4 a.m. Standing second from the front of the line with friends and like minded investors from Australia, and out of the rain, we were ready for the doors to open. When they did and the chaos subsided, we’d managed to get front row seats, and we knew we were set for another great day! The live-stream, I’m guessing, would have reached out to millions of supporters, shareholders and students, eager to learn from two of the world’s greatest investors, Warren Buffet (WB) now 85 and Charlie Munger (CM), an amazing 92 years of age. WB: “We arranged the online version so more shareholders could see Charlie and I at work and so business owners in other countries could become more familiar with Berkshire”. Despite the live-stream, the format remained the same: three hours of questions, a one hour break and then another three hours of questions, followed by the AGM.
    [Show full text]
  • 2019 SEC Form 10-K (PDF File)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14905 BERKSHIRE HATHAWAY INC. (Exact name of Registrant as specified in its charter) Delaware 47-0813844 State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 3555 Farnam Street, Omaha, Nebraska 68131 (Address of principal executive office) (Zip Code) Registrant’s telephone number, including area code (402) 346-1400 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbols Name of each exchange on which registered Class A Common Stock BRK.A New York Stock Exchange Class B Common Stock BRK.B New York Stock Exchange 0.750% Senior Notes due 2023 BRK23 New York Stock Exchange 1.125% Senior Notes due 2027 BRK27 New York Stock Exchange 1.625% Senior Notes due 2035 BRK35 New York Stock Exchange 0.500% Senior Notes due 2020 BRK20 New York Stock Exchange 1.300% Senior Notes due 2024 BRK24 New York Stock Exchange 2.150% Senior Notes due 2028 BRK28 New York Stock Exchange 0.250% Senior Notes due 2021 BRK21 New York Stock Exchange 0.625% Senior Notes due 2023 BRK23A New York Stock Exchange 2.375% Senior Notes due 2039 BRK39 New York Stock Exchange 2.625% Senior Notes due 2059 BRK59 New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
    [Show full text]
  • Warren Buffett Faces Insider Trading: a Case Study by Christian Koch, University of South Florida
    Volume 4, Number 1 Example Case Study 8 SEPTEMBER 2020 Warren Buffett Faces Insider Trading: A Case Study By Christian Koch, University of South Florida illionaire Warren Buffett has amassed a tially committed insider trading. Sokol resigns large following among those in the invest- from his position unexpectedly. In rank, Sokol Bment world and the numerous sharehold- is behind Charlie Munger, Buffett’s long-time ers of Berkshire Hathaway. Headquartered in business partner. Sokol is Chairman of sever- Omaha, Nebraska, Berkshire Hathaway oper- al Berkshire subsidiaries and has had a long, ates as a conglomerate that owns and operates successful relationship working with Buffett. businesses with famil- In fact, Sokol is consid- iar brand names like ered Buffett’s protégé Fruit of the Loom, GE- and the lead candidate ICO, Dairy Queen and In March 2011, Warren Buffett to replace Buffett upon Duracell. It also oper- stepped into chaos. The Chairman retirement. ates a large marketable of one of Berkshire Hathaway sub- In a March 30, 2011 securities portfolio run sidiaries, David Sokol, had resigned press release, Buffett by Buffett. Some top his position, but there was more to states, “in our first talk equity holdings are Co- the story. about Lubrizol, Dave ca-Cola, Bank of Amer- Sokol mentioned that ica, American Express, he owned stock in the Wells Fargo and Kraft company. It was a pass- Heinz. ing remark and I did not ask him about the date Buffett learns days after the public announce- of his purchase or the extent of his holdings” ment of the all-cash deal to acquire Lubrizol, (Busines Wire, March 30, 2011).
    [Show full text]
  • Berkshire Hathaway Annual Meeting Notes by Ingrid R. Hendershot, Cfa
    2017 BERKSHIRE HATHAWAY ANNUAL MEETING NOTES BY INGRID R. HENDERSHOT, CFA BERKSHIRE HATHAWAY 2017 ANNUAL MEETING NOTES BY INGRID R. HENDERSHOT,CFA We tuned into Berkshire Hathaway’s annual meeting webcast held on May 6, 2017, in Omaha. Warren Buffett, Chairman of Berkshire Hathaway, and Charlie Munger, Vice-Chairman, answered questions from shareholders, analysts and the media. Here are our notes from the annual meeting: INTRODUCTION Warren Buffett: That’s Charlie and I’m Warren Buffett. You can tell us apart because he can hear and I can see. We work well together. We each have our specialty. I’d like to welcome you to Omaha. It’s a terrific city. Charlie has lived in California now for about 70 years, but he still has a lot of Omaha in him. Both of us were born within 2 miles of this building that you’re in. Charlie graduated from Central High which is about one mile from here, it’s a public school. My dad, my first wife, three children and two of my grandchildren have all graduated from the same school, and in fact, my grandchildren will say they have had the same teacher that my dad and I had. It’s a great city. I hope you get to see a lot of it while you’re here. FIRST QUARTER EARNINGS Our earnings report was put out yesterday. The realized investment gains or losses over any given period really mean nothing. We could take a lot of gains if we wanted to or we could take a lot of losses, but we don’t really think about the timing of what we do at all except to the relation of the intrinsic value of what we are buying.
    [Show full text]
  • Inspiring Sustainability Improving Lives
    inspiring sustainability improving lives 2017 SUSTAINABILITY REPORT Table of Contents 1. INTRODUCTION About this Report ......................................................................................................................3 Message from Our CEO and CSO ............................................................................................4 Executive Summary ..................................................................................................................6 2. ENVIRONMENTAL Environmental Sustainability.....................................................................................................................10 Environmental Data Summary .................................................................................................12 Energy, Emissions and Climate Change ..................................................................................14 Product Footprint and Lifecycle Thinking ................................................................................17 Waste and Recycling ...............................................................................................................20 Water Consumption and Safety ..........................................................................................................23 3. SOCIAL Workplace Health, Safety and Security ...................................................................................25 Product Health and Safety ......................................................................................................30
    [Show full text]
  • The Competitive Advantages of Buffett & Munger Businesses
    Moats The Competitive Advantages Of Buffett & Munger Businesses By Bud Labitan 20/70 Chapters, Abridged Edition Released Free Of Charge Copyright © 2012 All rights reserved. Printed in the United States of America. No part of this book may be used or reproduced in any manner without permission. ISBN 978-1105422867 1 2 A truly great business must have an enduring “moat” that protects excellent returns on invested capital. ~ Warren Buffett How do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it. ~ Charlie Munger 3 4 TABLE OF CONTENTS INTRODUCTION CHAPTER 1: ACME BRICK COMPANY CHAPTER 2: AMERICAN EXPRESS CO. (AXP) CHAPTER 3: APPLIED UNDERWRITERS CHAPTER 4: BEN BRIDGE JEWELER CHAPTER 5: BENJAMIN MOORE & CO. CHAPTER 6: BERKSHIRE HATHAWAY GROUP CHAPTER 7: BERKSHIRE HATHAWAY HOMESTATE COMPANIES CHAPTER 8: BOATU.S. CHAPTER 9: BORSHEIMS FINE JEWELRY CHAPTER 10: BUFFALO NEWS CHAPTER 11: BURLINGTON NORTHERN SANTA FE CORP. CHAPTER 12: BUSINESS WIRE CHAPTER 13: BYD CHAPTER 14: CENTRAL STATES INDEMNITY COMPANY CHAPTER 15: CLAYTON HOMES CHAPTER 16: COCA COLA (KO) CHAPTER 17: CONOCOPHILLIPS (COP) CHAPTER 18: CORT BUSINESS SERVICES 5 CHAPTER 19: COSTCO WHOLESALE (COST) CHAPTER 20: CTB INC. CHAPTER 21: FECHHEIMER BROTHERS COMPANY CHAPTER 22: FLIGHTSAFETY CHAPTER 23: FOREST RIVER CHAPTER 24: FRUIT OF THE LOOM® CHAPTER 25: GARAN INCORPORATED CHAPTER 26: GATEWAY UNDERWRITERS AGENCY CHAPTER 27: GEICO AUTO INSURANCE CHAPTER 28: GENERAL RE CHAPTER 29: H.H. BROWN SHOE GROUP CHAPTER 30: HELZBERG DIAMONDS CHAPTER 31: HOMESERVICES OF AMERICA CHAPTER 32: IBM CHAPTER 33: INTERNATIONAL DAIRY QUEEN, INC.
    [Show full text]
  • An Investment Lesson from Warren Buffett
    The VIEW from BURGUNDY APRIL 2012 “Predicting Rain Doesn’t Count, Building Arks Does” AN INVESTMENT LESSON FROM WARREN BUFFETT PEOPLE OFTEN APPROACH INVESTMENTS without fi rst approach to portfolio construction. First, that only understanding what they are trying to achieve. ownership could generate the returns he desired, and Many end up with poor long-term returns and second, that losses would erode compounding’s even more confused than when they started. “magic.” Buffett would go on to apply these insights Warren Buffett, on the other hand, has accumulated a enthusiastically and with extraordinary success for $44 billion fortune in one lifetime of investing, starting many decades. from scratch, and has never been confused about how The Power of Ownership he earned it.i In this View from Burgundy, we will uncover how Buffett frames his investment approach. The Oracle of Omaha’s fi rst epiphany was about the The investment lesson learned, properly applied, power of ownership and it came at a young age. As a is sure to help us generate improved long-term results. teenager, Buffett purchased some farmland and split the annual crop income with the tenant farmer. After A Defi ned Goal and Timeline fi ve years, when the land was sold and Buffett doubled How did the Sage of Omaha create a huge fortune his original investment, he learned that although the from scratch? First, he knew what he was trying to owner risks the initial capital, only the owner benefi ts achieve. From a young age, Buffett’s goal was to from any capital gains.
    [Show full text]