Buffet Getting Richer
Monday, May 08, 2006
Investment legend Warren Buffet announced an increase of 70% in net earnings for the first quarter of 2006, in the public Berkshire Hathaway he controls. The $2.31 billion net earnings resulted from exchange rates as well as from the company’s other investments. Buffet’s lack of confidence in the dollar and the forward contracts the company made resulted in a $151 million net.
Berkshire Hathaway Inc is a holding company that owns around 40 companies around the world, mainly in insurance, but also in clothing, financial services, transport, construction, jewelry, along with other service companies. The company announced a few days ago that it will buy, for $5 billion, 80% of an Israeli metal-cutting company in line with its policy to diverse internationally and through foreign currency which again results from Buffet’s lack of confidence in the US Dollar and the US economic policy.
The company got its name through its 76 year-old founder, Warren Buffet, who moved up with his investment ideas to become the second richest man in the world with $42 billion. It is really interesting to follow the news of this man and his ventures. You can find a lot of articles on the net along with books on the investment strategy of Warren Buffet and how he turned $10,000 into $42 billion. You’ll also pass by business idioms like “The Buffet Way” and “Buffetology”. One other interesting fact, Class A shares of Berkshire Hathaway are priced at $88,710 and Class B at $2,945. In a very interesting article about the stock market, Buffet defined “investing” as “laying out money today to receive more money tomorrow”. It surely is working with him.
posted by Unknown @ 3:13 AM,
