Findings, Suggestion & Conclusion
Findings: WHEN IT COMES TO INVESTMENT, BERKSHIRE HATHAWAY HAVE THEIR OWN WAY OF DOING THINGS They have a very simple but proven model to decide whether an investment opportunity is for them or not. Sticking rigidly to their model over the long term has clearly worked too. We embarked upon an insightful excursion to the Berkshire Hathaway AGM to find out more about how they determine what to invest in, what characteristics and traits they buy into when originating deals. Here’s what we found: The Core Questions Their 4 core questions at the start of the investment process are as follows: Do we understand the business? Does the business have a long term future and competitive advantage? How good and reliable are the team? What is the right price? Berkshire run a short due diligence process that begins with spending time with the management team of the business in question. They believe the real risks/benefits lie with the people running the business and no du...