Berkshire Hathaway Base Case

By Mel Duvall  |  Posted 2003-08-01 Print this article Print

Shareholders nearly deify Warren Buffett for the way he manages his diverse holding company, Berkshire Hathaway of Omaha.

Berkshire Hathaway Base Case

Headquarters: 1440 Kiewit Plaza, Omaha, NE 68131

Phone: (402) 346-1400

Business: A collection of companies in businesses as diverse as insurance, underwear, ice cream, bricks, jewelry, flight services and encyclopedias. More than half of revenue is from insurance.

Chairman and CEO: Warren Buffett

Chief information officer: No such position.

Financials in 2002: $42.4 billion in revenue; $4.3 billion profit; EPS $2,795.

Challenge: Buffett has built an empire buying good companies, with great management, at a fair price. Berkshire now must strike megadeals to make any sizable impact on earnings.

Baseline Goals:

  • Grow stock price 10% a year greater than the Standard & Poor's 500.
  • Redeploy each dollar of retained earnings into a dollar of new business or investment.
  • Act as example for corporate America in executive compensation and accounting for financial results. Buffett's salary: $100,000 a year.
  • Give personal fortune of chairman (currently calculated at $30.5 billion) to charity, upon

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    Contributing Editor
    Mel Duvall is a veteran business and technology journalist, having written for a variety of daily newspapers and magazines for 17 years. Most recently he was the Business Commerce Editor for Interactive Week, and previously served as a senior business writer for The Financial Post.


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