Berkshire Hathaway Phenomenon In the Context of Modern...

Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Septtember 2013 Berkshire Hathaway Phenomenon In the Context of Modern Finance Theory Introduction Over the 46 years ending December 2012, Warren Buffett (Berkshire Hathaway) has achieved a compound, after-tax, rate of return in excess of 20% p.a. Such consistent, long term, out performance might be viewed as incompatible with modern finance theory. This essay discusses the Berkshire Hathaway phenomenon in the context of modern finance theory. Part 1 Modern Portfolio Theory Berkshire Hathaway’s investing strategies mainly differ with modern portfolio theory on two aspects. The first one is the attitude towards the undesirable thing in†¦show more content†¦Having compared the differences, it is still worth noting that Markowitz did not rule out fundamental analysis in portfolio selection process, as is said in his foregoing paper,(Markowitz, 1952)â€Å"the process of selecting a portfolio may be divided into two stages. The first stage starts with observation and experience and ends with beliefs about the future performances of available securities. The second stage starts with relevant beliefs about future performances and ends with the choice of portfolio. This paper is concerned with the second stage†. Part 2 Efficient Market Hypothesis The strong form of efficient market hypothesis states that all information, no matter public or private, instantaneously affects current stock price. Semi-strong form is only concerned with public information, while the weak form suggests that current stock price reflects information in the previous prices. In short, they simply imply that in the long run, no one should be able to beat the market in terms of investment return. As is said in Fama’s paper in 1970, (Eugene F, 1970)â€Å"the evidence in support of the efficient markets model is extensive, and (somewhat uniquely in economics) contradictory evidence is sparse†. However, Warren Buffet has always criticised efficient market hypothesis as much as he could. The majorShow MoreRelatedMerger and Acquisition: Current Issues115629 Words   |  463 Pagesassisted in the selection of articles for this book. GNG KLN xi This page intentionally left blank Notes on the Contributors The Editors Greg N. Gregoriou is Professor of Finance in the School of Business and Economics at State University of New York (Plattsburgh), USA. He obtained his joint PhD in Finance from the University of Quebec at Montreal, which pools the resources, with Montreal’s three major universities (McGill University, Concordia University and Hautes-Etudes (Commerciales)Read MoreInternational Management67196 Words   |  269 Pagesupdated on the book website. International Management is generally recognized to be the first â€Å"mainline† text of its kind. Strategy casebooks and specialized books in organizational behavior, human resources, and, of course, international business, finance, marketing, and economics preceded it, but there were no international management texts before this one, and it remains the market leader. We have had sustainability because of the effort   and care put into the revisions. We hope you agree that thisRead MoreManagement Course: Mba−10 General Man agement215330 Words   |  862 PagesCourse: MBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership, Fifth EditionRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages91 4 Emotions and Moods 97 What Are Emotions and Moods? 98 The Basic Emotions 100 †¢ The Basic Moods: Positive and Negative Affect 100 †¢ The Function of Emotions 102 †¢ Sources of Emotions and Moods 103 Emotional Labor 108 Affective Events Theory 110 Emotional Intelligence 112 The Case for EI 113 †¢ The Case Against EI 114 †¢ Emotion Regulation 115 OB Applications of Emotions and Moods 115 Selection 116 †¢ Decision Making 116 †¢ Creativity 116 †¢ Motivation 117 †¢ Leadership 117 †¢ Negotiation 117Read MoreCase Study148348 Words   |  594 Pageslittle full-time work experience the text should prove useful in providing a systematic approach and illustrations of strategy in practice. The illustrations and case examples in the text (and associated work assignments) should be used to relate theory to practice. Case studies and the video material should be used in fairly focused ways – in order to consolidate that stage in the learning – rather than in an all-embracing way 9  © Pearson Education Limited 2011 Johnson, Whittington and ScholesRead MoreDamodaran Book on Investment Valuation, 2nd Edition398423 Words   |  1594 Pagestypos do not find their way into the final version. Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless Rates and Risk Premiums Chapter 8: Estimating Risk Parameters and Costs of Financing Chapter 9: Measuring Earnings Chapter 10: From Earnings to Cash Flows Chapter 11: Estimating Growth ChapterRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pageswhich have been chosen to enlarge speciï ¬ c issues in the text and/or provide practical examples of how business and public sector organisations are managing strategic issues. The case studies which follow allow the reader to extend this linking of theory and practice further by analysing t he strategic issues of speciï ¬ c organisations in much greater depth – and often providing ‘solutions’ to some of the problems or difï ¬ culties identiï ¬ ed in the case. 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Nancy Bligh Was Born October 25Th, 1954 In Paterson, New

Nancy Bligh was born October 25th, 1954 in Paterson, New Jersey to Elizabeth Anne Gormley and Edward Bligh. When Elizabeth gave birth to her third child Nancy, she immediately felt like she was going into labor again. To everyone’s amazement, she gave birth again to a fourth child! Sadly, when she asked the doctor what the gender of the other child was, the doctor said, â€Å"You don’t need to know that. You just gave birth to a healthy baby girl. That is all you need to know.† Back then the doctors did not have to tell you everything they tell you know. Liz, swears that she gave birth twice so Nancy would have been a twin, but the other baby was a stillborn. The doctors would not talk to her about it. Nancy and her family moved to Guilford,†¦show more content†¦Over time he became a local and they family finally fit in. Nancy’s mother Elizabeth was the tenth out of thirteen children. She married at 16 and had six children of her own. Nancyâ€℠¢s father was 19 when he married Elizabeth, and he was the youngest of four children. They felt obligated to get married because Liz was pregnant and it was not socially acceptable for her to be a single teenage mother. After 16 years of marriage they got a divorce and Nancy’s mom moved back to New Jersey. Years later she moved to Arizona so that she could live near her own mother. Liz remarried in Arizona, but never had any more children. Her dad lived in Sangerville, Maine after the divorce. Eventually, he remarried and divorced for the second time. Luckily he got a son named Billy out of that marriage. Edward decided at the age of 48 to take a sabbatical from the real-estate business and travel. After he split from his ex-wife he traveled while he still had his health. At the age of 69 Edward Bligh died of lung cancer. He acquired lung cancer most likely from smoking cigarettes for the majority of his life. While Ed was still living with cancer, Nancy took him to all of hi s doctors appointments as well as to all of his scheduled radiation and chemotherapy appointments. Sadly, he only lived eighteen months after he was diagnosed. Nancy was twelve years old when her parents divorced and the family was split up. Half

Industrial Management And Consultation Project †MyAssignmenthelp.com

Question: Discuss about the Industrial Management And Consultation Project. Answer: This report deals with organization that plays an important role in the integration of the diversity as well as managing consultation to the other organizations. To help understand the functions and the project activities of these organizations, an organization has been cited to help in the better understanding. The organization taken for the assignment is Gulf Integration. The secondary sources describe, discuss, analyze, evaluate, summarize and interpret the process of primary sources. The well-known secondary source materials are newspaper articles, journals, magazines and reviews that discuss or evaluate original research of someone else. Bibliographical works, encyclopaedia, literature review, scholar books and treatises are the less popular secondary research sources. Secondary sources are commonly one or more steps removed from the event or time period and generated after the fact with the benefit of hindsight. The drawback of secondary data research is that it lacks the freshness and immediacy of the original material. Occasionally, secondary sources would gather, decorate and repackage primary source information to enhance the usability and speed of delivery. The Gulf Integration is a real estate and retail sector who have their businesses in Singapore, Saudi Arabia, Kuwait, Oman, Qatar, UAE and Bahrain (Abu?Qarn and Abu?Bader 2008). We have incorporated the data of trade investment of the Gulf Integration of Singapore. Singapores fiscal policy stance in recent years (2013-2017) is mildly expansionary as the budget continues to support the economy. Growth in few sectors such as offshore and marine engineering, and to a certain extent, construction continues to limp along with domestic consumption and investment. It displays weakness that could slow down economic expansion in the forecast period. Some stock indexes such as Composite Stock Price Index, Broad Money Growth, Headline Inflation Rate, Industrial or Manufacturing Production Growth Rate, Merchandise Export Growth and Exchange Rate Index could be interpreted in this secondary research (Buiter 2008). The excel files could be downloaded from company website and the online website is referred as secondary data resource. The Real Sector mainly concentrates on three segments 1) monthly inflation, industrial production and retail sales 2) Quarterly GDP and its components 3) Annual GDP and inflation. The External Sector secondarily considers 1) Daily Exchange Rate 2) Weekly Exchange Rate 3) Monthly Exchange Rate, Reserves and Trade 4) Quarterly External Debt (Balance of Payments) 5) Annual Balance of Payments, Exchange Rate, External Debt and Trade. The secondary data of Monetary and Financial Sector could be apprehended in several sectors such as- 1) Daily Policy Rate, Stock Price 2) Weekly Stock Price 3) Monthly Broad Money, Credit value, Capital Adequacy Ratio, Policy Rate and Stock Price 4) Annual Broad Money, Commercial Bank Assets Equity, Loans, Stock Price. The secondary data of free trade agreements of Gulf Integration is collected from company website and publications. However, Gulf Cooperation Council (GCC) plans to adopt selected macroeconomic and institutional issues and key policy choices that are likely to arise during the method of monetary integration (Sturm and Siegfried 2005). The main findings of Secondary data resources and researches are- A supranational GCC monetary institution is needed to conduct a single monetary and exchange rate policy driven to economic, monetary and financial conditions in the monetary policy as a whole. GCC member states have already achieved a remarkable degree of monetary convergence. However, fiscal convergence remains an issue and required to be supported by a proper fiscal policy framework (Sturm et al. 2008). There is currently a high degree of structural convergence, although this is expected to diminish in view of the method of diversification in GCC economics that calls for adequate policy responses. References Sturm, M. and Siegfried, N., 2005. Regional monetary integration in the member states of the Gulf Cooperation Council. Buiter, W.H., 2008. Economic, political, and institutional prerequisites for monetary union among the members of the Gulf Cooperation Council.Open Economies Review,19(5), pp.579-612. Sturm, M., Strasky, J., Adolf, P. and Peschel, D., 2008. The Gulf Cooperation Council Countries-Economic Structures, Recent Developments and Role in the Global Economy. Abu?Qarn, A.S. and Abu?Bader, S., 2008. On the optimality of a GCC monetary union: structural VAR, common trends, and common cycles evidence.The world economy,31(5), pp.612-630.

Influence Of Mega Events On Tourism Tourism Essay Example

Influence Of Mega Events On Tourism Tourism Essay Mega-events addition more and more importance for assorted facets. On the one manus they have immense impacts on the host states and on the other manus they play a important function for the touristry industry ( Roche, 2000 ) . These yearss a immense scope of mega-events is offered to diverse mark groups. Harmonizing to Getz ( 1991 ; as cited in Robertson, 2006 ) athletics events are more celebrated for male participants whereas humanistic disciplines and cultural events derive more importance for female participants. The scope of mega-events offered are large featuring events like the Olympic Games, the FIFA football World Cup, Formula One, every bit good as many more subjects. Furthermore there are besides World Fairs like the Expo, large music festivals as for illustration the Glastonbury Festival in the sou-west of England or the Cannes Film Festival in France, merely to call some of the legion offers. All of them are taking topographic point in different states, parts or metropoliss spread out all over the universe. Some of them ever stay in one location whereas others rotate or change the locale each clip. Besides there is besides a fluctuation in the frequence the events take topographic point. There are some events that are hold several times during a twelvemonth and there are others that are one time a twelvemonth whereas many merely even occur every 2nd, 3rd or 4th twelvemonth. Besides the continuance of each individual event varies. We will write a custom essay sample on Influence Of Mega Events On Tourism Tourism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Influence Of Mega Events On Tourism Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Influence Of Mega Events On Tourism Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The purpose of this essay is to critically measure the influence mega-events have on touristry. It contains general information about mega-events, like definitions. As there is a immense scope of different events along with many issues, the writer of this essay is concentrating on athleticss mega-events merely ; on their diverse stakeholders every bit good as on the undertaking of hosting them. The essay ends with a decision and recommendations for future mega- events. Mega-events in general are non easy to specify due to the different signifiers as mentioned in the debut. In 1988 Jafari did non cognize how to clearly specify them. For him it was non clear what an event needed to carry through to be considered a mega-event. Therefore he had the undermentioned inquiries that needed to be answered beforehand: Is it more of import to see the figure of visitants attracted ? Or should it be the continuance or the orientation it has that makes it a mega-event ( Jafar Jafari, 1988: 272 ) ? However, Robertson ( 2006: 1 ) presented the definition Roche ( 1994 ) made: Mega-events are best understood as large-scale cultural ( including commercial and featuring ) events which have a dramatic character, mass popular entreaty and international significance. Roche avoids paying attending to the continuance but in contrast considers the international importance as a key-value. Sing the global significance he mentions within his definition, can be absolutely reflected in the country of athleticss mega-events which are performed by international jocks and at the same time are watched all over the universe. But before even reasoning about athleticss mega-events it is of import to specify what they are considered to be. Harmonizing to Horne ( 2006 ) sport mega-events are of import elements in the orientation of states to international or planetary society. As can be seen here, Horne talks about the importance of the global idea as good. This makes obvious that mega-events ever have an influence on the whole universe. There is the possibility that they take topographic point about all over the universe and besides that the visitants are coming from all over the universe, excessively, to watch such a spectacle, which covers the touristry facet in this instance. But it is of import to be cognizant that every individual event has a different figure of visitants coming due to several grounds. Above all it is necessary to look at the topographic point the event takes topographic point. This is really important because of likely bing political issues, terrorist onslaughts, conditions ( e.g. monsoon ) and wellness hazards ( e.g. malaria ) for illustration, tourers would instead see a state where they fee l safe than a state where they perchance would be afraid of. So the figure of visitants attracted is non merely dependant on the subject of the event itself but besides on the state where it takes topographic point. One cardinal inquiry is: why did mega-events addition such an importance for the whole planetary community within the last old ages? To clear up this inquiry Horne ( 2006 ) suggests as stated in Robertson ( 2006:2 ) that there are three grounds for the enlargement and turning attractive force of mega-events. First he mentions the media as an of import factor for it. The possibility to utilize mass communicating is responsible for unprecedented planetary audiences for these eyeglassess. As can be seen, the media makes it possible for the whole universe to take part in a certain manner in mega-events by e.g. watching them on Television or reading about them in newspapers. Second he names a theoretical account called tri-partite theoretical account . Within this theoretical account are sponsorship rights, sole broadcast medium rights and selling which have been pulling patrons by the association with the athleticss and the huge planetary audience exposure the events achieve. ( Robertson, 2006:2 ) . And thirdly there is besides the importance of using as host state, metropolis or part because harmonizing to Robertson ( 2006: 2 ) mega-events have become seen as valuable promotional chances for metropoliss and parts. Particularly this 3rd ground makes obvious why there are ever so many metropoliss, parts and states using to host such a large spectacle. However, these bidders should take into consideration that hosting a mega-event can besides do negative impacts. For illustration for the Olympic Games 2008 in Beijing where a immense figure of people has been displaced in the readying of the Games for constructing the needed substructure. This is a bad issue because the same job will inevitable occur for the Olympic Games taking topographic point in London 2012 and likely besides for all the approaching Games in the hereafter. However, when believing about this it is non truly sensible that for illustration the local population has to endure when a mega-event is taking topographic point in the country where they are populating. Otherwise hosting a mega-event has many advantages for the host metropolis, part or state: legion occupations are created and most notably there is the possibility of enlarging touristry. But harmonizing to Roche ( 2000: 141 ) : [ aˆÂ ¦ ] any new command is likely to concentrate on long-run image-building and non short-run touristic economic returns. That means that those responsible of a possible host metropolis or state know, that they might non profit from the event short-run but there will be more touristry long-run due to an improved image for illustration. This goes along with Kang and Perdue ( 1994 ; as cited in Roche, 2000: 141 ) : mega-events have a long-run impact on international touristry to the host state ; the impact is the greatest in the twelvemonth following the event and diminishes over clip. Besides that there are other writers who besides see the possible economic impact. As stated by Toohey and Veal ( 2007 ) the possible positive economic consequence is the ground for metropoliss and states to offer to host a mega-event. In add-on to the possibility to enlarge touristry in long-run there are several other stimulations to host a mega-event harmonizing to Richard Cashman ( 1999 ; as cited in Toohey and Veal, 2007: 74 ) : He mentions different signifiers of bequests like economic benefits, built environment ( transport substructure ) , public life, political relations, civilization and built clean substructure. All these bequests benefit the host metropolis or state long-run. Additionally to the long-run impacts there is ever the danger of incorrect appraisals harmonizing to Horne ( 2006 ; as stated in Robertson, 2006: 5 ) : [ aˆÂ ¦ ] prognosiss are about ever incorrect. [ aˆÂ ¦ ] A major concern in considerations of athleticss mega-events has been the spread between the prognosis and existent impacts on economic system, society and civilization. Harmonizing to Horne and Manzenreiter ( 2006 ) another of import fact is that on the one manus some countries will profit through tourers sing a mega-event but on the other manus the organisers have to be cognizant that tourers who possibly would hold come to see the metropolis or part will non come because they are non interested in the event. There will ever be a batch of people who come because of the event taking topographic point but there will besides be adequate people who avoid to see the host metropolis or part because they are possibly non interested in the event that is offered or they do non desire to be in that peculiar topographic point when there are so many other people at the same clip. Harmonizing to Kim and Chalip ( 2004: 695 ) sellers of mega-events have the demand to excite international trial to their event in order to optimise the events fiscal and touristry results. As seen it is the undertaking of the sellers to do a mega-event attractive to appeal to as many tourers as possible. Sing the facet of pulling tourers Kim and Chalip ( 2004 ) see events as pull-factors for finishs. This goes along with Alexandris et Al. ( 2009 ) , who mention that mega-events play an of import function in schemes that expressly target an international touristry market. In add-on to this, Weed ( 2008: 296 ) provinces that The chief economic benefit for a part derives from the ingestion by visitants during the event and increased touristry in the station event period. As can be seen he besides mentions the addition of touristry takes topographic point after the event and to boot brings up the theory of ingestion during the event. But it is non easy to gauge the economic benefit that will be made through hosting a mega-event because along with Preuss ( 2008 ; as cited in Weed, 2008: 296 ) one of the chief hurdlings in finding the economic impact of major multi-sport events on a metropolis or part is the deficiency of cognition on ingestion forms of visitants and the figure of ind ividuals that are sing the event. There are many different parties that make net income through the ingestion of the visitants like air hoses, hotels, eating houses, sightseeing administrations every bit good as general tourer attractive forces. As a mega-event is such a large spectacle it has to be planned for a really long clip. Harmonizing to Robertson ( 2006: 10 ) [ aˆÂ ¦ ] things come together after months and sometimes old ages of planning. Therefore different stakeholders are indispensable as there are so many undertakings that have to be fulfilled and as there is the demand of a immense sum of money to do mega-events go on. This leads to a really of import inquiry: who is paying for organizing any sort of mega-event? A perfect illustration that shows the complexness about funding a mega-event are the approaching Olympic Games in London 2012. As the official Internet website presentation of the Olympic Games in London provinces, there are two cardinal administrations one private, one populace. ( London 2012, 2010 ) . Harmonizing to this website the private sector is the London Organising Committee of the Olympic Games and Paralympic Games ( LOCOG ) . The budget they have will be delivered through the privat e sector by for illustration the sale of tickets and trading articles, every bit good as it will have income from the International Olympic Committee ( IOC ) and extra money through a domestic sponsorship programme ( London 2012, 2010 ) . The public sector, which is responsible for the new locales and the substructure, is represented by the Olympic Delivery Authority ( ODA ) . TheA ODA is funded by the Department for Culture, Media and Sport, the Greater London Authority, the London Development Agency and the Olympic Lottery Distributor ( London 2012, 2010 ) . As can be seen there are many different organisations that have to pay a immense sum of money to fund this specific large spectacle. And of class it would non be possible to do such an event happen if there were non so many support it. However, as mentioned by Toohey and Veal ( 2007 ) the host metropolis or state knows beforehand that hosting a mega-event will be them more money than they in fact will derive. So why are at that place each clip so many bidders who want to host a mega-event? This inquiry can easy be answered with the already above mentioned statements that the long-run impacts of these events are more of import for a metropolis or the whole state than the fact that they have to pay more money than they really will have through hosting them. This facet was already found out by Pyo et Al. ( 1988 ; as stated in Roche, 2000: 141 ) by looking on several Olympic Games between 1964 and 1984, that there were non adequate visitants and there was non adequate disbursement by them to warrant the event costs . Along with Toohey and Veal ( 2007: 127 ) the most of import beginning of income for the organisers are the airing rights: [ aˆÂ ¦ ] the Olympic Movement is significantly dependent on income from airing rights. Furthermore they list some other chief beginnings of income for Game events: universe and local sponsorship, ticket gross revenues, lottery, sale of trading articles every bit good as Government contributions. ( Toohey and Veal, 2007: 135 ) . These statements show that there are many beginnings where money can be gained earlier and during a mega-event but it has ever and likely will ever be less than the money spend beforehand and during the event by the organisers. Research for this essay shows that it is non easy to specify mega-events in one term due to the immense scope of bing events. However there are assorted sorts of events that are called mega-events but each individual event has a different figure of visitants, a different mark group that is attracted and besides the continuance varies. The fact that mega-events can take topographic point practically all over the universe makes them a modern-day issue for the travel and touristry industry. There may be some tourers who could be afraid to see a certain state for illustration due to political issues or wellness hazards. Therefore each state that is chosen to host a mega-event will hold different impacts. There will ever be a difference in the figure of visitants attracted to an event and above all each host metropolis or state will hold different long-run touristry impacts afterwards. As seen hosting a mega-event does non gain the host metropolis or state short-run but all the statements like enlarging touristry long-run, constructing enduring conveyance substructure and edifice up the image of a state are more of import than the loss of money that likely will be coming in the old ages after the event took topographic point. But even when the costs for hosting mega-events are much higher than the money gained through them such immense events are really of import for the whole universe as already mentioned by Robertson ( 2006 ) and Weed ( 2008 ) . Because of all the above mentioned statements mega-events are a modern-day issue for travel and touristry and due to the fact that such events will at least take topographic point in the close hereafter the issues will be prevailing. In the sentiment of this essays writer events and particularly mega-events conveying the universe together due to the planetary importance and decidedly assist people to acquire a better apprehension of other states. Mega-events like Olympic Games and exhibitions have been and go on to be of import phenomena at many degrees and in many respects . ( Roche, 2000:5 )