BRK Acquisition Critera

[Guest deepValue]

Can someone point me to a page in a recent BRK letter/annual report that outlines Buffett's acquisition criteria? I can't seem to find it anywhere.

[cubsfan]

Can someone point me to a page in a recent BRK letter/annual report that outlines Buffett's acquisition criteria? I can't seem to find it anywhere.

 

Here you go:

BERKSHIRE_HATHAWAY_INC-_acquisition_criteria.pdf

[Guest deepValue]

Great, thanks!

[Guest longinvestor]

Can someone point me to a page in a recent BRK letter/annual report that outlines Buffett's acquisition criteria? I can't seem to find it anywhere.

 

Here you go:

 

There is nothing like this anywhere but Berkshire. Looking at the criteria for getting acquired, the owner must truly care about the long term health of the business. The perfect example would be ISCAR. The Wertheimers, we have learned recently met all of the criteria and got acquired without even a visit to their facilities by Warren. In fact Warren jokes now that it was good he did not see the facilities as he would have paid more for the business. Five years since, the Wertheimers went from 80% to a wholly owned unit. This script has played out many times at BRK. Nebraska furniture, Geico, Burlington et al. Another take on this is that, anything that is fractionally owned could be a wholly owned unit of BRK. A safe capital pathway for BRK's Billions.  So much for worries about BRK not being able to find deals.