Berkshire Hathaway Inc (BRK.B)

[gfp927z]

Bar, Concerning Berkshire's business model of owning dozens of companies outright, this seems fraught with potential problems since how can so many disparate businesses be run optimally? Even with the previous owner and management still in place, the fact that they are no longer 'the' owner will make most people less focused and motivated in running and growing the business.

With Berkshire as the owner, getting funds for expansion can be easier, so that's a significant advantage. And Berkshire has a 'hands off' approach and tries not to meddle. But it's human nature to work harder/smarter when you own your own business, and some of that 'edge' is lost when you are no longer the owner.

Anyway, not that the Berkshire model can't work well, since it obviously has, but it's fairly unique in the business world.
Seems like it would be a management nightmare, but I guess Buffett's hands off approach is what makes it work.




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