Replies to post #74409 on Blue Diamond Ventures Inc (BLDV)

[Kool Aid Man]

Alper is free to report anything he likes..including how every subsidiary performed. That's what Warren Buffet does in each of his "Shareholder Letters." http://www.berkshirehathaway.com/letters/letters.html

His Berkshire Hathaway is a "holding company" as described below-->

HOLDING COMPANY:
Berkshire Hathaway was Buffetts biggest holding when he shut down the fund and redeemed his partners. He cleaned up the operations, made it lean and mean and used the income from operations to invest it in the stock market or buy other businesses. Here is where the holding company was born! As income increased, Buffett branched into various sectors and kept buying businesses that generated atleast 15% income year over year and let the power of compounding work. A holding company, by virtue is an umbrella of companies and of investments in stocks. It is to be expected there is a cost of running the business...hence, the companies under the umbrella report their losses or gains that is then reported. On the stock portfolio front, other than commissions, there are really no expenses. The Holding Company may be run by a manager(or managers) who may (if you are lucky) just collect an annual compensation with an equity award (if you are lucky) that is entirely tied to the performance of the underlying portfolio compared to a "FLAT BONUS" which is still the norm. A holding company may or may not pay a dividend. remember, even dividends are taxed (state, local and federal taxes). Buffett refers them as his three silent partners who always extend their hand to collect their share. Buffett maximizes shareholder value by minimizing payouts to his three partners by not paying a dividend and reinvesting the earnings...
https://www.quora.com/What-is-the-difference-between-a-holding-company-Berkshire-Hathaway-and-a-hedge-or-mutual-fund