Reference no: EM131202532 , Length: word count:1200
Assignment -
Part A-
The project involves writing a commentary on Warren E. Buffett's Berkshire shareholder letter. The project is to be completed individually. Shareholder letters (1977 - 2014) will be randomly selected and assigned to students. These assignments are on BlackBoard under the "assessment" tab.
You can download shareholder letters from https://www.berkshirehathaway.com/letters/letters.html.
Task Description
1. Comment on Buffett's investment portfolio selection. You may make reference to the concepts we have identified in class. You may apply a historical view to analysing Buffett's investment decisions (Were they good decisions? Why?).
2. Criticise Buffett's shortcomings/ignorance in his shareholder letter. Try to improve his fund manager - investor relationship management by adding/changing part of shareholder letter.
3. Comment on and explain financial tables/statements in shareholder letter. Visualise this data when applicable. Why did Buffett choose to present these tables/numbers? What is significant about them?
Part B-
Question 1 - Analyse the holdings of BH with respect to concepts learned in class. Describe the features of Berkshire Hathaways investment portfolio, including the types of industries invested in, the level of control (full or partial) acquired and any other kinds of assets held by the fund (bonds, derivatives, etc). Links to the course material are also identified, these include identifying the types of companies invested in - their ability to generate residual earnings growth, how they maintain a hold on this comparative advantage and what kind of cash flow characteristics those companies have.
Analyse Buffetts Investment Decisions
Examine the performance of one or more of Berkshire Hathaways recent acquisitions. These answers not only examined the current value compared to the purchase price, but also looked at the returns generated through time from the investment and whether the stated motivations for initially making the investment came to fruition.
Question 2 - Criticize Buffetts shortcomings in the shareholder letter
Provide clear and insightful views on the shortcomings of Buffetts letter and provided concrete examples of how such shortcomings could be improved.
Question 3 - Comment on the significance of the financial statements used.
Identify and visualize the tables presented by Buffett and why the tables was important and identified what information Buffett was able to convey using that table. Provide an innovative and creative presentation of financial data in a way that was able to distill the essence of the information being conveyed. This could include showing bar charts of companies purchase price compared to current, or graphs indicating the growth in the S&P 500 as compared to the growth in the value of Berkshire Hathaway. These graphs were clearly labelled, with x and y axis labels, scales, headings and legends.
Assignment link - https://www.dropbox.com/s/pewqshz7oylv26w/Assignment.rar?dl=0.
Words Count - 1200.
Referencing Style - 4 Harvard Style.
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