Berkshire Hathaway: from GAAP to Economic Reality

In this article, I want to shed some light on the financial statements of Berkshire Hathaway. Berkshire is a company that can best be described as a diverse collection of businesses, consisting of a large insurance segment, wholly-owned subsidiaries in a variety of industries such as retail and manufacturing, partly-owned businesses in the form of …

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Do Money Managers Create Value?

What is value? Value is a multifaceted concept that encompasses anything that improves someone’s life. This improvement can be objective, such as food for survival, or subjective, like a Pokémon card triggering a nostalgic feeling. Each individual perceives the value of a given service or good differently. In a market, the average perceived value among …

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