Legal is about what we can get away with, ethical is about what is right

Warren Buffett

‡One of the most successful investors in the world and third richest man in the world. Industrialist and Philanthropist. chairman and CEO of Berkshire Hathaway ‡ Buffett is called the ´Oracle of Omahaµ or the ´Sage of Omahaµ .Who is Warren Buffett??? ‡Warren Edward Buffett is an American Investor. ‡ He is the primary shareholder.

Life History ‡ Born on 30th august 1930 in Omaha ‡ Chairman and CEO of Berkshire Hathaway ‡ Worlds wealthiest person in 2008 and the 3rd in 2011 .

coca cola. in his sophomore year of high school. which they placed in the local barber shop. ‡ Buffet as a kid went for selling chewing gum.. . they owned several machines in different barber shops. newspapers. ‡ In 1945. ‡ Started investment when he was in his age of 11.Life history cont. Buffett and a friend spent $25 to purchase a used pinball machine. Within months.

Ltd. New York as a Securities Analyst ‡ 1956 1969 at Buffett Partnership.. . Omaha as its Chairman.‡ Warren Buffett was employed from 1951 54 at Buffett-Falk & Co as an investment sales person ‡ From 1954 1956 at Graham-Newman Corp.. CEO. Omaha as a General Partner ‡ 1970 Present at Berkshire Hathaway Inc.

Buffett began writing his now-famous annual letters to shareholders ‡ Buffett became a billionaire when Berkshire Hathaway began selling class A shares on May 29. as chairman of Berkshire Hathaway. 1990 .Berkshire Hathaway ‡ In 1970.

but always go on to what we would feel comfortable about being printed on the front page of our local page and never proceed forward simply on the basis of the fact that other people are doing it .. .Ethical Leadership His instructions to his employees at Berkshire Let us start with what is legal.

What makes Buffet different from others? ‡ He is known for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. having pledged to give away 99 percent of his fortune to philanthropic causes. ‡ Buffett is also a notable philanthropist. ‡ He always did his business in the most ethical way . primarily via the Gates Foundation.

‡ He is liberal at heart.‡ He is conservative in business and appearance. which contrast him sharply with his peers ‡ He founded Glide foundation together with his wife Susan Thompson .

drives his car himself and avoids all luxuries of life ‡ He pledged to give away all his wealth philanthropy. Buffett is a simple man. ‡ Now he travels around the world to promote Giving Pledge along with Bill and Melinda Gates ‡ In 2011 W.Leadership in personal life ‡ W. he lives in his old house.Buffet and Bill Gates are coming to india . ‡ He joined the Giving Pledge a movement aimed at encouraging the wealthiest people to donate some portion of their wealth for charity.

which specializes in global health and education projects . Berkshire Hathaway.CSR ‡ In 2006 he gave $37 billion worth of shares in his firm. to five charitable foundations. The largest recipient (receiving some $31 billion) will be The Bill & Melinda Gates Foundation.

Buffett believed that it was inappropriate for a company to direct its charitable giving to the pet causes of the board of directors.‡ Unlike the large majority of companies. ‡ Instead. he established a system whereby shareholders of the company could allocate their proportionate share of the company's giving to go to whatever charitable organizations they deemed fit. .

.Leadership Style ‡ New Organization Motivates Managers to think like owners ‡ Personal Influence Managers can contact him personally incase they face any difficulties in business ‡ Delegation of Jobs Gave managers power to think creatively and to increase productivity.

He also stepped in to run the bank for a time. government threatened to come down hard on Salomon and John Gutfreund. ‡ Warren Buffet directly intervened with the Treasury department to quickly reverse a ban on Salomon bidding in government bond auctions. a move that would have crippled the investment bank.S.Berkshire Hathaway . Berkshire Hathaway ultimately saw its stake more than double when Travelers bought Salomon in 1997 . ‡ The U. and news came out in 1990 that a rogue trader had submitted bids in excess of Treasury rules and that the CEO at the time (John Gutfreund) had failed to discipline the trader.Salomon Brothers controversy ‡ Berkshire Hathaway had acquired a 12% interest in the investment bank Salomon Brothers in 1987. and despite a $290 million fine levied on Salomon.

.AIG Controversy ‡ In 2006 Berkshire Hathaway subsidiary General Re had cooperated with AIG in engaging in so-called finite reinsurance. The company paid a $92 million settlement and promised some changes to corporate governance practices. Hank Greenburg. ‡ While the government aggressively pursued AIG and its chairman at the time. ‡ Finite reinsurance was not really insurance as such (with a corresponding transfer of risk). but more of an accounting gimmick that allowed a company like AIG to buff the appearance of its financial reports for a period of time. Berkshire Hathaway did not escape unscathed.Berkshire Hathaway .

‡ Berkshire Hathaway made several opportunistic investments amidst the depths of the recession and credit crisis on terms that were very advantageous to Berkshire. .

Presented by Group 1 Abey Jacob Abey Mathew Koshy Aneesh Sudhesan Anish Thomas Ann Mary Paul Joma George Susmitha V .

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