Warren Buffett Acquire Berkshire Hathaway

If you are anxious to learn how to invest like the multimillionaire Warren Buffett, it is important to first flick through some investments made by the man, in his beginning years of investment. After a thorough review, your information on the subject will then be sound enough to buy stocks like Warren Buffett. Visit for best http://www.justfoodco.co.uk/food-warren-mi/

One of the earliest and most talked about investment made by him was in the company named Berkshire Hathaway that is situated in Omaha, Nebraska in the U.S.A. The company is involved in the business of cotton mill and cotton spinning. In May 2012, the class A shares of Berkshire became the highest priced shares in the New York Stock Exchange.

This company is a gigantic merger of two companies namely Hathaway Manufacturing Company and Berkshire Fine Spinning Associates Inc. that took place in the 1950s. The reason for this merger was a depression in the textile business after the World War I. The investor Seabury Stanton of Hathaway contributed some more money to help it out of the hard time. As a result, soon the company came into its boom period, where he decided to shake hands with Berkshire Fine Spinning Associates Inc.

Warren Buffett made his appearance in the early 1960s, by buying the stocks of the much bigger Berkshire Hathaway. Although, when Warren looks back to what he has earned in the last almost half the century of his investment, he calls it a poor investment decision as he could have earned multiple folds of returns if he would have invested the same in an insurance company.

However, he learned a lot about investing after he acquired Berkshire Hathaway. He started by buying stocks of the company in 1962. Here, the reason of investment was Warren Buffett’s intrinsic value concept. He believed that the sale price of the stock was lower than its intrinsic value. Moreover, he had followed a trend in the share prices of the business after every shutdown of the mill of the company.

 

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