Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code :LDS0018B

Year : 2006

Industry :Banking, Insurance and Financial Services

Region : USA

Teaching Note:Available

Structured Assignment :Available

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Introduction: Warren Edward Buffett, American stock investor, businessman and philanthropist nicknamed as the Oracle of Omaha or the Sage of Omaha had amassed an enormous fortune particularly through his company Berkshire Hathaway in which he held 38% stake. With an estimated net worth of US$. 42 billion he was ranked by Forbes as the second richest person in the world second only to Microsoft chairman Bill Gates. In June 2006 he made the commitment to giveaway 85% of his fortune to charity most of which would go to Bill and Melinda Gates foundation. Buffet’s donation the largest act of charitable giving in the United States history did not come as a complete surprise to those who knew Buffett. Despite his immense wealth he was famous for his unpretentious and frugal lifestyle.

Buffet had been able to make the right investment decisions over the years through value investing. He was a staunch believer in fundamental analysis, the analysis of a company’s financial and non financial information and did not pay heed to technical analysis, the analysis of stock price levels and variation trends. He was individually considered as the most successful investor in the stock market and it would be a challenge to the modern day investors to emulate Buffett’s methodology and his phenomenal success.