Question Completion Status 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 is CEO and chairman of Berkshire Hathaway Company, a diversited cromerate which he us with a long time we and tried Charly More chairman, and is so years Buffets senior Berse, as the conglomeracommonly called, is based in Omaha, Nebraska. Then the similarity with other cond More than fifty years ago, Warren Buffett began investing the money of residents les me town of Omaha row could have imagined back in 16th sertly you make them was a worthless textile mill called Merleshire Hathaway, which was vertically cluned. Nowadays, the company annual meeting and rund 40.000 kr. Med hours answering questions from shareholders, journalist and analysts. In an age when diversified conglomerates are out of tashion, Berkshire's gain in tworth during 2016 was a phenomenal 7 till sie worthy companied GO shareholdings in mainly American companies such as Coca-Cola, Well, IM, American Express, and recent Apple, the first bought Apple stock in 2016. The punem strategy for the investor, who has steered dear of technology socks he doesn't even own a smartphone Ruffett iskren to perpetuate the culture and character Hathaway embodies. A fellow board memberi Gates. In 2006, uten donated the way she wrth $ and Melinda Gates Foundation, the biggest le charitable donation in history. The charitable Foundation has only three trustees and Melinda Gates, and Warren Buffet After his death, he intends his vast wealth to begin www. This brings up the aftenvaded question of action nuffett's role is to deliver significant growth to shareholders over time. He has only two jobs, to attract and keep outstanding managers to run our operation. The other top ston Over the past fifty two years Berkshire's per share book value has grown from $19 to $172.108, a rate of runeteen percent compounded way. In or to other companiese directors retain all earnings. paying no dividends. This reflects the belief that they can earn a greater return on capital testing shareholder fandt The Sage of Omaha, as thuffett is commonly called, I renowned for taking the right financial decisions. In the late 19101 Buffett wared against the excess of the docom boom wide ancial analysts were busy talking of a new investment paradigm be quietly wided all the new start-up companies he did not understand. From 1950 to 2000 Berhetsprice fel by toy four percent; at the same time the stock market rose by thirty two per cent. When these new economy companies went bankrupt after the bubble basst, sticking to lis principles and all It was Warren Buffett's reputation which allowed him to take a shareholding in Goldinan Sachs and on advantageous terme during the Francia criols, which proved hugely profitab, in 2017 estimated his net worth at $75.6 billion, making him the second richest man in the world after Bill Gates. Berkshire's portfolio of shares and bonds has continued to grow and to deliver substantive capital gains, interest, and dividends he can acquires company thwes when they are the head with Coca-Cola after the new Coke' hasco, he will. But as Buffett puts it, it's for better to buy a wonderful company at a fair price than a fair company at a wonderful. The portobar 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 pre from financial investments to the outright ownership of businesses Buffett believes his unconventional two pronged approach to capital allocation provides him with a real edge. By 2016, investment in shares comprised only one titthof Bershire's www Namining hour. 5 minutes 29 de question completion Status: COM Wwwcom www It was Warren Buffett reputation which allowed him to take a shared in Goldman Sachs and on two tom during the financiadem, which in 20 estrated his net worth at $75.6 to making him the second whest man in the water Gates Berkshire portfolio of harm and bonds es continued to grow and to deliver estate capital, Wars, weddidiffe.com with Coca Cola after the new Cokelason, he wil, But as Bullett puts it, for better to buy wonderful computer prietenul considered the portion provided major support in financing the purchase of business from financial investments to the right ownership of businesses There has occurred a gradual shaft from a company obtaining most of its from westen we to one that goes in value by wire busy the early 10, then we wen Bullett believes his unconventional, Two pronged approach to capital location provides bum with a reader, ny 2016, investment has come only one interest Buffett volds the financial engineering and creative accounting prevalent among other contomerates whose professed strength traderable management capable His successful formula to buy quality compares hat understands with good defence against corapetitors. I trus morgers to run um bor, am then to the long terme continued success is contrary to the efficient market hypothesis. This states that, over the long term, the current market price wap efects at walable and let woman whout me This implies that over the long term you cannot outperform the market, which the comitently does ses choice of acquisition includes with wage the competit hard to replicate. This might be a popular brand or companies with some degree of monopoly powerhen in mature Industries. We are compars with a rood with a whose focus is performint a good job rather than making money As Andrew Campbell, co-author of Strategy for the Corporate ever states, the other firm in the past 100 years has been able to do considerly what Berishire 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 modell 3. How will Berkshire Hathaway survive the loss of Warren Buffett and Charlie Mungu? A I. X For the toolbar, press ALTF 10 (PC) or ALTIN-F10(Mac). BIUS Paragraph Ariel 14px EB 1992 A . L+ E XX, TT X Tamir Hands Cats 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 Www Odman of the other weten with me and her ummus Methany w umowith www.he way hom a company wie e caedere Huthwy, which was my deurd when the from outsidan www.we comes out of them were in the 28th Mid Archery company we woud who hao want to be for the whole of the stockholm and Melanda Gates end, the chartable daten in der Tech For the w been to prate the culture and chat we des Autow and be www After his death, intends want who been with up the tendensino de Butecosta de and growth to shareholders over time. He has only two to to www. 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What are the dynamic capables which Warren Buffett portes 2. Why do you think o organization has copied deshire Hathww celatively simple business modell 1. How will shire Hathaway survive the bow of Warren Buffett and Charlie Murpre! np