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Warren Buffet and Hershey Foods Case Study Analysis


Warren Buffet/ Berkshire Hathaway

He was ranked as the richest individual in the world in 2008. One of the world’s biggest investors is Warren Buffet. He is Berkshire’s CEO and owns most of its stock. He is a famous philanthropist for his money. Much of his enormous fortune has been donated to charity and other charitable initiatives. His theory of investing has been primarily focused on market merit.

Investment Philosophy

Buffet has changed his investing strategy over the years, depending on changing circumstances. He has been doing value investing at the time. The customer sells stocks or bonds selling for or at their underlying prices for less. Quality buyers like Buffet are pursuing those businesses because the market has undervalued them. This induces unusual shifts in the company’s stock investment. The values of such businesses are deflated when this occurs and that is when a value investor strikes.

The intrinsic value is the stocks, assets and product value of a business. This value may or may not be the same as the market value at present. Intrinsic value, in the sense that the stock price is not used to determine the intrinsic value of a business, is different from the stock price. In the stock market, the stock price of a company could be high or low when analysed based on intrinsic value.

Warren Buffet and Hershey Foods Case Study Analysis

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