F
Broker Check

Class 3, Part A

In this third class, we’ll continue to focus on one of the two key questions animating this whole course: What makes a business a good business? We’ll also revisit a concept from the first class - economic moats, which is central to how Buffett thinks about whether
a business is built to last.

In this 3 section, we’ll examine a couple key acquisitions Berkshire made in 1995: Helzberg Diamonds and the large auto insurance company, GEICO.


homework:

In this third class, we’ve talked about Buffett’s purchases of Helzberg Diamonds and R.C. Willey in 1995 and whether those were good businesses. We also discussed the insurance business — underwriting and float management — and how float is the financial engine behind Berkshire (it’s what allows Berkshire to buy good businesses). Why was GEICO a good insurance business and Buffett’s long history with it

Before we move to our next module on markets, reflect again on what you now understand makes a good company. Think about the name of one company we have not discussed that you think might meet Buffett’s criteria for being a good company (economic moat, strong brand, low-cost leader, great managers, etc.).


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EMAIL: john@kraeutlerfinancial.com
PHONE: (973) 867-1387

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