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Explain Berkshire Hathaway for me then, please.
by maaku 11y ago
Explain Berkshire Hathaway for me then, please.
- refurb 11y agoBerkshire doesn't just buy stock. It buys a controlling interest and influences the way the company is run.
- mahyarm 11y agoVC investors tend to influence the company too.
- Cshelton 11y agoWhile true, the difference between the decisions the board of a company makes and the 'investors' is pretty significant. VC investors are not there to act as a board of directors. Where as many private equity/takeovers deals usually end up replacing many people on the board and executives.
- deleted 11y ago[deleted]
- scythe 11y agoExtremely unpopular fact: Berkshire has fundamentally the same business model as Bain Capital. They just do it better.
- maaku 11y agoI disagree, but let's say you are right. Then that model does outperform the market, no?
- ConfuciusSay 11y agoIt does, but how much of that comes down to lobbying. I wonder who was pressuring Obama to not approve Keystone, and who also happens to own a ton of railways that transport oil?
- rockinghigh 11y agoThey mostly make money with the private equity business by buying businesses with high cash flow and extracting more cash from them.
- maaku 11y agoThen why hasn't Coca Cola been sucked dry? That does not describe Berkshire Hathaway at all.