The Letter Issued By Berkshire Hathaway Inc. - 1378 Words

Warren Buffet Assignment The letter issued by Berkshire Hathaway Inc. is filled with a lot of information detailing the information that happened in 2014 and years prior. This letter comes on the 50 year anniversary and feature Warren Buffet and Charlie Munger’s thoughts on the past 50 years and what they expect over the next 50. The introductory section of the letter titled â€Å"To the Shareholders of Berkshire Hathaway Inc.:† it outlines a general overview of the occurrences of the stock over the past 50 years and how it has increased dramatically, and also what they believed was the best way to show it has increased. Major Players The first Major section with a lot of Substance within the letter is â€Å"The year at Berkshire.† A part that†¦show more content†¦I find this interesting because one would think that a loss of that magnitude in an industry where they claim to be its core operation at Berkshire Hathaway would seriously hurt the revenue and profits for the year. It’s explained that because of the many streams of earnings that that is why they would expect profits regardless. The next section labeled â€Å"Regulated, Capital-Intensive Business† has a very interesting segment about Berkshire Hathaway Energy that personally helped me learn something new. It’s mentioned that one of the factors that allow BHE to be able to service its debt under all circumstances is that it deals with recession-resistant earnings. It’s a concept that I’ve never actually thought about before. The idea that no matter how bad a recession in an economy is that the utilities B HE exclusively provides are things that are considered to be essential services. Moving on to the section titled â€Å"manufacturing, Service and Retailing Operations† it’s said that he has not made his last mistake in purchasing stocks or business and that not everything works out as planned. This interests me because it’s easy to think that Warren Buffet such a successful man or on a more broad term Berkshire Hathaway can do no wrong because of how successful it s proven