<img alt="dcsimg" id="dcsimg" width="1" height="1" src="//www.qsstats.com/dcs8krshw00000cpvecvkz0uc_4g4q/njs.gif?dcsuri=/index.php/c/a/Projects-Management/Auditing-An-Oracle/8&amp;WT.js=No&amp;WT.tv=10.4.1&amp;dcssip=www.baselinemag.com&amp;WT.qs_dlk=XYkhf@iEzG@mzvUt0PrO8QAAAAk&amp;">

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

  • <12345678910>
    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.

    eWeek eWeek

    Have the latest technology news and resources emailed to you everyday.