abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Berkshire Hathaway : Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B) is a conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt.
Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.
Warren Buffett is the company's chairman and CEO. Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including railroads, candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric and gas utilities.
Strengths
* Top management reputation & leadership
* Strong capital position and superior financial ratings
* Diversified portfolio ranging from property and casualty insurance and reinsurance, utilities, energy, finance, manufacturing, services and retailing
* Strong and consistent top and bottom line growth
Weaknesses
* Over dependence on Warren Buffett's leadership
* Slower growth in certain investments (Coke, P&G, Shaw industries)
* Diversification - McLane accounts for almost 1/3 of ***shire's revenues and 1/3 of McLane's business is tied to one single company (Wal-Mart)
* Company's stock inaccessible to most people
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Opportunities
* Acquisitions - given current market conditions the company has identified areas of investment (ie Goldman Sachs)
* Alternative energy investments
Threats
* Financial & economic markets turmoil
* Potential capital requirement changes both in the US and Europe
* Worldwide weak consumer environment
Berkshire Hathaway stock produced a total return of 76% from 2000-2010 versus a negative 11.3% return for the S&P 500.
Warren Buffett is the company's chairman and CEO. Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments. In the early part of his career at Berkshire, he focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including railroads, candy production, retail, home furnishings, encyclopedias, vacuum cleaners, jewelry sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric and gas utilities.
Strengths
* Top management reputation & leadership
* Strong capital position and superior financial ratings
* Diversified portfolio ranging from property and casualty insurance and reinsurance, utilities, energy, finance, manufacturing, services and retailing
* Strong and consistent top and bottom line growth
Weaknesses
* Over dependence on Warren Buffett's leadership
* Slower growth in certain investments (Coke, P&G, Shaw industries)
* Diversification - McLane accounts for almost 1/3 of ***shire's revenues and 1/3 of McLane's business is tied to one single company (Wal-Mart)
* Company's stock inaccessible to most people
k
Opportunities
* Acquisitions - given current market conditions the company has identified areas of investment (ie Goldman Sachs)
* Alternative energy investments
Threats
* Financial & economic markets turmoil
* Potential capital requirement changes both in the US and Europe
* Worldwide weak consumer environment
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