This story is a bit long, but it’s part of an ongoing series on the importance of self-awareness in business. The author, Berkshire Hathaway, is an experienced real estate investor and former Fortune 500 executive. His company, HTH Realty, owns many of the country’s best houses, including the Beverly Hills Hotel, the Beverly Hills Tennis Center, and the Beverly Hills Polo Club.
In the past two weeks Berkshire has reported that his company is making a profit, but the profit hasn’t been all that spectacular. It’s actually the same story with his company’s real estate investments: They have made a few bucks here and there, but overall they’re losing money. Even the fact that Berkshire does not know what’s happened to his fortune since he’s been gone to the best part of a year does not help matters.
The best part of a year? Its been two years since Berkshire Hathaway’s $13 Billion purchase of the $3.8 Billion, $5 Billion, and $6 Billion Walden’s stake in the New York Stock Exchange. Even after this week Berkshire had not made a penny on his investment. Not really, at least not from the $13 billion that is now invested in Wall Street.
Berkshire Hathaway is not only the biggest shareholder in the NYSE and Nasdaq, it is also the largest holder of Wall Street stocks. In fact, it owns around 5% of the shares at any given time, and there is speculation that Berkshire could gain more than $4 billion by selling its entire 5 billion shares, and that even more, more than 4 or 5 additional billion shares, could be sold in the next few weeks. (Source: www.washingtonpost.
While it’s not surprising that Berkshire will make more money on this deal, it is a bit shocking that it is not expected to return much of that money back to investors. The SEC is investigating Berkshire-related trades, so it’s not clear how likely Berkshire is to get back the money it lost, but the company’s stock is now down 9.2%.
Berkshire is expected to earn about $2.3 billion in the next quarter, and its shares are now up nearly 20 percent. While the company’s stock is still down more than 20 percent, the company is still the #1 in its class, so its not all that surprising that they’re making so much money. It’s just that a nice payday isn’t necessarily a good incentive for Berkshire to do much of anything different.
Berkshire has been a good company at keeping its customers happy for a long time. Its the company that took over J.P. Morgan Chase after it went bankrupt in the 80s. Its a good company because of that experience. But it’s not a great company. It’s just that its not a great company.
Its not that the numbers are bad, its that theyre not so great. Berkshire is making so much money, that its not just the average american making money. Its a company that has a lot of cash, but its not making so much money as to be profitable. Its just that its not making so much money. It does have a little cash, but thats all. Its the same cash that it takes from the bank as it makes interest payments. Its not the same cash.
For Berkshire, the main source of its income is its pension funds. By investing in these funds, the company hopes to achieve the same goal of making so much money from so little. But the company is so large that, as its not producing as much money, it’s making less than it should. Berkshire is not making a lot of money, but it is making money that is not making as much as it should.