Read the "Warren E. Buffett, 1995," case. Complete and submit a 350-700-word report analyzing and responding to these questions:
1. Would the GEICO acquisition serve the long-term goals of Berkshire Hathaway?
2. Was the bid price appropriate?
3. What might account for the share price increase for Berkshire Hathaway at the announcement?
4. Briefly discuss agency theory and how it applies to Berkshire Hathaway's management and shareholders
Here is just a sample of what you will find in the solution:
"Even though Warren Buffet was a tough minded investor there could have been an element of sentimentality in the acquisition of GEICO and that could provide...