Question: please answer this case in less than one hour Question 24 points Case Study: The Dynamic Capabilities of Warren Buffett - Total 6 Marks -
please answer this case in less than one hour
Question 24 points Case Study: The Dynamic Capabilities of Warren Buffett - Total 6 Marks - 2 Marks each Read the Case carefully and answer the questions give at the end of the Case Study Warren Buffett CEO and chairman of lerkshire Hathaway Company diversified conglomerate which he runs with us long time wiate and friend, Charley Mug Mug chairman, and is in years Buffett's seniorshire, as the conglomerate is commonly called, is based in Omaha, Nebraska. There, the marity with any other comprends More than fifty years ago, Warren Buffett began investing the money of residents in his home town of Omaha. Tew could have imagined back in 1956 at the scruly young man would mam fabulously wealthy. Over time, he would gradually sun from a company obtaining most of its gains from westment ces to one that grows in Welsyn bennewe. One of these was a worthless textile mill called Berkshire Hathaway, which was eventually closed. Nowadays, the company's nual meeting attracts around 10,000 shoden Buffett Mungerend Time hour answering questions from shareholders, journalists, and analysts. In an ape when diversified conglomerates are out of fashion, Berkshin net worth during 2016 was a phenomenal $27 billion, Berkshires more than any companies. I GEICO shareholdings in many American companies such as Coca Cola, Wells Fargo, IBM, American Express, and recently Apple Bufett fogh Apple sted in early 2016. The purcharted a shin Strategy for the investor who has steered clear of technology stocks, he doesn't even own a smartphone Buffett is keen to perpetuate the culture and character Hathaway embod. A fellow board member il Gates. In 2006, Bullett donated Beshire Hway thwes worth over 50 in to the and Melinda Gates Foundation, the best single charitable donation in history. The charitate Foundation has only the trees and Melinda Gates, Warren Buffet After his death, he intends es vast wealth to be given away. This bring up the oftended question of succession Buffett's role is to deliver gant growth to shareholders overweHe has only twojors, tot and keep outstanding managers to run our various operation. The other is capital location! Over the past fiftytwo years Berkshire's per share book van has grown from $19 10 517,101, a rate of inteen percent compounded arwalty Incontri to other companiedredors retain all earning paying no dividends. This reflects the belief that they can earn a greater return on capital tyngheholder Funds The Sape of Omaha, as Buffett is commonly called, is renowned for taking the right financial sections. In the late 1970s Buffett warned in the excess of the doctomboom. While trac analysts were busy taking of a new investment paradigm he quietly wided all the new start up companies he did not understand. From 1 to 2000 Berkshire Hathaway's share price full by torty four percent; at the same time the stock market rose by thirty two percent. When these new economy companies went bankrupt after the bubble bursting to his principles and off it was Warren Buffett's reputation which allowed him to take a shareholding in Goldman Sachs and GE on advantageous termos daring the financial crisis, which proved hugely profitable in 2017 Forbes estimated his net worth at $75.6 billion, making him the second richest man in the world after all Gates Berkshire's portfolio of shares and bonds has continued to grow and to deliver substantive capital gains, interest, and dividends, if he can acquire a company's shares when they are cheap, she did with Coca Cola after the new Coke' hasco, he will. But as Buffett puts it, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful proe. The portfolio marins have provided major support in financing the purchase of businesses There has occurred a gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses. By the early 1990s, the focus was changing from financial investments to the outright ownership of businesses. Question Completion Statue Was waren errepin which we arengimasena on SUNNETIC, With prove to pronto me estimated his net worth at $75.6 billion, making him the second richest man in the world after all Gates Berkshire's portfolio of shares and bonds has continued to grow and to deliver substantive capital gains, interest, and dividends. It he can are a company shams when they cap, as with Coca-Cola after the new Cokelflasco, he will. But as Buffett puts it, it's far better to buy a wonderful company at a fow price than a fur company at a wonderful price. The portfolio Show provided major support in financing the purchase of businesses from financial investments to the outright ownership of businesses There has occurred a gradual shift from a company obtaining most of its pains from westment activities to one that grows in value by owning birineus. By the early 1990s, the focus was changing Buffett believes his unconventional, two pronged approach to capital allocation provides him with a real edge. By 2016, investment in shares comprised only one that she's sets Buffett avoids the financial engineering and creative accounting prevalent among other conglomerates whose professed strength is transferable management capabilities His successful formula is to buy quality companies he understands with good defences apainst competitors. He truss man to run them as before, and retains them for the long term. continued success is contrary to the efficient market hypothesis. This states that, over the long term, the current market price always reflects all available and relevant information about a com This implies that over the long term you cannot outperform the market, which Buffett consistently does. His choice of acquisition des companies with advantage of their competitors that are whose focus is performing a good job rather than making money. hard to replicate. This might be a popular brand of companies with some degree of monopoly power, often in mature Industries. He admites companies with a strong walce will manager As Andrew Campbell, co-author of "Strategy for the Corporate Level states, no other him in the past 100 years has been able to do consistently what Berkshire Hathaway has done Answer the following Questions 1. What are the dynamic capabilities which Warren Buffett possesses? 2. Why do you think no organization has copied Berkshire Hathaway's relatively simple business model? 3. How will Berkshire Hathaway survive the loss of Warren Buffett and Charlie Munger? Sur For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

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