The Warren Buffett national indemnity investment allowed Buffett to gain an important foothold in the insurance industry. Buffett used cash generated by his textile operations to fund entry into the insurance business by purchasing National Indemnity Company in 1967. Insurance companies are attractive because of their float, or cash with a near-zero cost of capital, […]
Why did Warren Buffett invest in Disney (NYSE: DIS)? The Warren Buffett Disney Investment has paid off handsomely. Buffett first invested in Disney in 1966. Disney is a diversified worldwide entertainment company. It has five operating segments: Media Networks – this operating segment manages the ESPN, Disney, ABC Family and SOAPnet networks. These cable networks […]
Why did Warren Buffett invest in American Express (NYSE: AXP)? In the mid-1960s, Buffett bought 5% of American Express with 40% of Buffett Partnership capital (approximately $13 million). The Warren Buffett American Express investment has generated spectacular returns for the Oracle of Omaha. Founded in 1850 as a joint stock association and incorporated in 1965 […]
Investing in Berkshire Hathaway Warren Buffett’s partnership owned a majority stake in Berkshire Hathaway (NYSE:BRK.A) by 1967. Considering only its textile operations, this investment was a failure – the company consistently produced net losses; Buffett eventually had to liquidate the company, as he could not find a single buyer. However, Berkshire Hathaway could be seen […]
Why did Warren Buffett invest in Coca Cola (NYSE: KO)? Why Coca Cola has for many years been the most heavily weighted Warren Buffett stock in his portfolio. Between 1988 and 1989, Buffett bought 7% of Coca-Cola (23.4 million shares) at an average price of $44 a share. Its price to book value then was […]
