4 ms·
Basically all true, except every other conglomerate generally wanders into debt, then acts like it's candy, gets hooked and then runs into untold troubles for a
by zie 4y ago
Basically all true, except every other conglomerate generally wanders into debt, then acts like it's candy, gets hooked and then runs into untold troubles for a while, when the debt and bad deals eventually catch up with them.
BRK noticeably avoids debt, prefers all cash deals and keeps a very strong pile of cash laying around just in case.
- slavboj 4y agoBerkshire's ability to commit to long-term planning (at least currently) instead of levering up to boost short term returns to equity gives them an advantage over the traditional conglomerate model.